Private real estate financing means obtaining a short-term mortgage loan through a private firm or individual with the intention to purchase, carry out improvements on or refinance a home. Austin private mortgage loans have many advantages — they are fast closing, have minimal eligibility requirements and additionally, are open to self-employed borrowers.

That's very good news for real estate investors because even a person with poor credit can obtain a private money for a real estate loan given that he has a deal that shows promise, he has enough cash for a downpayment, he has demonstrated himself capable in real estate, and can show a good exit strategy. Furthermore, if you are hoping for a fast closing, you won't find any options better than Austin private real estate mortgages.

Primarily, borrowers consult Austin private mortgage lenders to loan money for their projects when:

1. They want money to fix up a house and market it at a much higher price or to up the lease amount for tenants.

   For example, there was a customer who owned a 2-unit rental. He had enough equity available in the house and the rent generated regular income each month. He wanted to perform some upgrades to the property so that he could keep his rents high, but a low credit score of 520 meant a bank would turn down the loan application. After he approached Read Rock Capital to obtain a loan, we were glad to complete a cash-out refinance at 65% of the home's market value.

2. They wish to consolidate their debts.

   Most people think it is stressful to deal with countless payments each and every month. To arrange a more manageable situation, people consolidate all their outstanding debts into an individual line of credit with just one monthly payment.

3. They wish to unlock their existing equity in one home or property and invest in another one.

   For example, a customer located in Hawaii had his residence which was valued at $1,200,000. His idea was to sell the house but it did not happen and he eventually was forced to be satisfied with leasing the place to someone, with an option to buy at a later date. The cash that stemmed from the rental payments took care of his regular mortgage bill, home owner's insurance, and property taxes. The renter also put $200k in the form of a non-refundable deposit as he signed the three year agreement. Having these assurances to take care of the house's foreseeable bills, he came across a new real estate investment opportunity and got in touch with Read Rock Capital for a private mortgage loan around 70% of the property's value. The borrowed funds helped him afford a new investment and also pay off his initial mortgage.

4. They want assistance to meet the balloon payment for the existing mortgage loan.

   A real estate investor who has a previous private loan and isn't able to afford the balloon payment as a result of a change in circumstances can fill out an application for refinancing from a different loan company. A refinance can help him avoid missing the cut-off date for the balloon payment and prevent any fees and penalties.

Hoping to find a private mortgage lender in Austin to finance your investment purchase? Enter your info into the contact form or give us a call and let's talk about the property you have in mind.