Private real estate financing can help investors pay for, renovate or refinance a home or property utilizing a short-term mortgage from a privately owned firm or an individual. Aurora private mortgage loans have many advantages — they close fast, are easy to qualify for and are also available for self-employed applicants.

That's why, even if you don't have very good credit, having a promising real estate opportunity, a significant downpayment, previous experience, and a clear-cut exit strategy are much more crucial when it comes to qualifying for private money for a real estate loan. Combined with fast closings of only 14 days, private real estate mortgages in Aurora are an ideal solution for serious real estate investors.

In general, people get a hold of a private mortgage lender in Aurora when:

1. They are searching for money to remodel a property and offer it for a higher price or to up the lease amount for tenants.

   One example is a client who operated a two-family rental property. He held an abundance of equity available in the asset and the rent payments brought in routine income each month. Though some upgrades to the place would've helped him ask for higher rent, a bank would most likely have turned down his mortgage application, given that he had a credit score of down at 520. Shortly after he contacted Read Rock Capital to get financing, we were happy to do a cash-out refinance at 65% of the home's valuation.

2. They wish to combine unpaid debts.

   Most people find that it's stressful to make countless payments every month. To successfully put together a more workable situation, people consolidate each of their outstanding debts into one single line of credit with one payment per month.

3. They want to unlock their equity in one house and use it to purchase another one.

   One of Island View's borrowers in Hawaii had a home worth $1.2 million. When he was unable to procure a buyer for the property, he agreed to a lease-option-to-buy contract with someone. The lease income made it possible to meet his current mortgage, property taxes and homeowner's insurance. The tenant also went ahead and paid him 200k as a downpayment for the 3 year lease. With the help of this collateral to cover the home's foreseeable expenses, he came across a new real estate opportunity and got in touch with Read Rock Capital to obtain a private mortgage loan close to seventy percent of the home's estimated value. This not only gave him enough cash to use for a down payment on his next home, but also made it easier for him to repay the current mortgage.

4. They have a previous loan and can't afford the looming balloon payment.

   A person who invests in real estate and currently has an existing private loan and is unable to afford the balloon payment thanks to a change of circumstances can apply for refinancing from another lending company. A refinance can help him hit the cut-off date for the balloon payment and avoid penalty charges.

Want to discuss financing options with a private mortgage lender in Aurora? Enter your info into the form on this page or give us a call and let's talk about the property you have in mind.