Private real estate financing means getting a short-term loan through a private firm or individual person with the intention to purchase, carry out upgrades on or refinance a property. Aurora private mortgage loans have many advantages — they are fast closing, easy qualifying and are also offered to self-employed borrowers.

That is good news for investors because even somebody with weak credit can qualify for private money for a real estate loan assuming that he has a promising deal, he has plenty of money for a downpayment, he has proven himself competent in the real estate market, and can show a sensible exit strategy. In addition, Aurora private real estate mortgages close fast to give you financing without delay, helping you close a deal within 2 or 3 weeks.

Most real estate investors speak with Aurora private mortgage lenders when:

1. They want to find capital to renovate a house and offer it at a much higher price or to up the lease amount for renters.

   By way of example, there was a borrower who owned a 2-unit rental property. He held enough equity in the building and the rent payments brought in routine monthly income. A number of select home improvements would help him boost his rental prices, but with a below average credit score of 520, it was highly certain that a bank would turn down his mortgage application. Shortly after he got in contact with Read Rock Capital to get a loan, we were pleased to do a cash-out refinance for 65% of the house's appraised value.

2. They need to merge all of their financial debts into just one loan.

   Many of us think it is stressful to manage multiple payments every month. On that basis, many individuals get a loan against their home's equity to combine all their financial debts into just one manageable payment.

3. They would like to use their home's equity for an additional real estate deal.

   As one example, a client located in Hawaii owned a home appraised at $1,200,000. When he could not procure a buyer for his home, he inked a lease-option-to-buy arrangement with an interested party. The income that stemmed from the rental payments took care of his continuing mortgage payment, home owner's insurance, and property taxes. Additionally, he received a $200,000 non-refundable downpayment for the three year contract. Using these sureties to handle the property's financial obligations on a recurring basis, he contacted Read Rock Capital for a 70% LTV private mortgage loan to help with his upcoming purchase of an investment property. Meaning that he was able to make the deposit for his next investment, and also pay down his existing mortgage.

4. The balloon payment for a preexisting mortgage is due and they are not able to pay it.

   A person who invests in real estate and has a previous private mortgage loan and isn't able to afford the balloon payment on account of a change in circumstances can apply for refinancing from another lender. A cash-out refinance can help the borrower make the balloon payment and evade penalty.

Hoping to make contact with a private mortgage lender in Aurora to go over funding alternatives for your upcoming investment? Fill out the form on this page or give us a call to discuss the property you have in mind.