Private real estate financing means obtaining a short-term mortgage via a private company or individual person as a way to buy, perform improvements on or refinance a property. Contrary to bank loans, Augusta private mortgage loans are fast closing, have minimal eligibility criteria and open to self-employed applicants.

That's great for investors because even somebody with weak credit can qualify for private money for a real estate loan given that he has a deal that shows strong potential, he has enough cash for a down payment, he has proven himself competent in the real estate market, and has a sensible exit strategy. And having fast closings of only 2 weeks, private real estate mortgages in Augusta may very well be the right solution for serious real estate investors.

In most cases, customers rely upon Augusta private mortgage lenders to finance their real estate activities when:

1. A rehab or renovation will help them market the house at a higher price or ask for significantly more rent.

   Real example: one of our borrowers operated a two-family rental property. He already retained a good deal of equity available in the property and the monthly rent brought in a steady cash flow. A handful of select home upgrades would undoubtedly help him bump up his rental prices, but with a poor credit score of 520, it was very probable that a bank would turn down the loan application. So he reached out to Read Rock Capital to do a cash-out refinance and acquired financing at 65% LTV.

2. They need to consolidate their personal debts.

   Many of us know how stressful it is to make multiple payments on a monthly basis. On that basis, many individuals do a loan against their home equity to merge each of their debts into one loan.

3. They would like to take advantage of the existing equity in a current house to work on another real estate project.

   As an illustration, a homeowner in Hawaii owned a house appraised at $1,200,000. While it was difficult for him to find a purchaser for the place, he had found an individual who was willing to lease it having an option to buy. The rental agreement payments served to meet his current mortgage payment, taxes and insurance. The renter also went ahead and paid him two hundred thousand dollars in the form of a deposit for the three year agreement. With these sureties to cover the home's foreseeable bills, he stumbled on another promising investment opportunity and contacted Read Rock Capital to obtain a private mortgage loan nearly seventy percent of the home's valuation. This allowed him to pay an advance on the down payment for his next property, and furthermore pay down his existing mortgage.

4. They already have a preexisting mortgage and are unable to pay the pending balloon payment.

   If someone cannot meet a balloon payment resulting from unanticipated causes, he can seek to refinance his loan with a different mortgage lender. Refinancing prior to the term date helps the borrower to meet the deadline for the balloon payment and stay clear of penalty charges related to failing to pay the balloon payment.

Hoping to discuss financing options with a private mortgage lender in Augusta? Enter your info into the form or get in touch with us via phone and let's discuss the project you have in mind.