Many real estate investors use private real estate financing to buy a new property or home, or remodel or refinance one they already own. Auburn private mortgage loans have many advantages — they are fast closing, easy qualifying and additionally, are available to self-employed applicants.

That is good for investors since even somebody with poor credit can qualify for private money for a real estate loan provided that he has a deal that shows strong potential, he has sufficient money for a downpayment, he has proven himself competent in the real estate market, and can show a good exit strategy. Combined with fast closings of two weeks, private real estate mortgages in Auburn are the right alternative for ambitious real estate investors.

Most real estate professionals work with Auburn private mortgage lenders when:

1. They would like to update or repair the property so that they can market it at an increased price point or to fetch higher rents.

   For instance, there was a borrower with a 2-family rental. He'd already built sufficient equity available in the building and the rent was a regular income source. A few choice home enhancements would undoubtedly allow him to bump up the cost of rent, but having a below average credit score of 520, it was extremely likely that a bank would turn down his loan request. Thus, he came to Read Rock Capital to obtain a cash-out refinance and received a loan at 65% LTV.

2. They want to consolidate financial debts.

   Countless outstanding debts with a range of lending rates are incredibly overwhelming and difficult to manage. To make the situation more reasonable, people merge all their unsecured debts into only one loan with only one monthly payment.

3. They would like to take advantage of the existing equity available in an existing home to work on a different project.

   As an example, one of our customers in Hawaii had a home appraised in excess of a million dollars. When he was not able to secure a buyer for the property, he inked a lease-option-to-buy arrangement with somebody. The lease payments served to meet his existing mortgage, taxes and insurance. Additionally, he was given a two hundred thousand dollars non-refundable deposit for the 3 year lease agreement. The signed agreement meant he no longer needed to be concerned about the home's future financial obligations, and as a result, when a new real estate opportunity surfaced, he came to Read Rock Capital and got a private mortgage loan at 70% loan to value. This gave him more than enough cash to use for a down payment or his next investment, but also made it easier for him to pay down the current mortgage.

4. The balloon payment for a previous loan is due and they can't pay it.

   If an unexpected mishap stops a borrower from making his balloon payment deadline, he could find an alternative loan company to refinance. Refinancing prior to the term date helps you to make the deadline for the balloon payment and stay clear of penalties in connection with failing to make the balloon payment.

Intending to discuss mortgage alternatives with a private mortgage lender in Auburn? Enter your info into the contact form on this page or call us to talk about your property or properties.