Private real estate financing gives assistance to real estate investors who want to purchase, remodel or refinance a home using a short-term mortgage loan from a private business or an individual. Baltimore private mortgage loans have many advantages — they close fast, are easy to qualify for and additionally, are available to self-employed borrowers.

So even if you don't have very good credit, having a promising real estate opportunity, a significant down payment, past real estate experience, and a clear-cut exit strategy are a great deal more crucial when being eligible for private money for a real estate loan. Additionally, the fast closing Baltimore private real estate mortgages provide you with funding right away, letting you close on a deal within 2-3 weeks.

Most individuals turn to Baltimore private mortgage lenders when:

1. A remodeling job or renovation will help to offer their property for a higher price point or get additional rent.

   One example is a client who operated a 2-family rental. He held a great deal of equity available in the building and the rent checks generated routine monthly income. A few select home improvements would undoubtedly allow him to bump up his rental prices, but since he had a lower credit score of 520, it was very probable that a bank would turn down his loan application. Thus, he turned to Read Rock Capital to obtain a cash-out refinance and obtained financing at 65% LTV.

2. They need to consolidate personal debts.

   Many of us know how stressful it is to manage countless payments every month. To help make the situation more manageable, people combine each of their unsecured debts into a single loan with just one monthly payment.

3. They wish to take advantage of the equity available in an existing home and property to do an additional real estate project.

   By way of example, one of Island View's previous borrowers located in Hawaii had a property valued at over one million dollars. When he failed to procure a buyer for his property, he inked a lease-option-to-buy deal with someone. The lease payments served to meet his current mortgage payment, property taxes and insurance. He also was given a $200,000 non-refundable deposit for the 3-year lease. With the help of this collateral to pay for the house's foreseeable bills, he stumbled on another promising real estate opportunity and got into contact with Read Rock Capital to obtain a private mortgage loan close to 70% of the property's value. Meaning that he was able to make his down payment for his next investment, and also pay down his present mortgage.

4. They have a previous private loan and can't pay the pending balloon payment.

   A person who invests in real estate and currently has an existing private loan and isn't able to afford the balloon payment on account of a change in circumstances can apply for refinancing from a different lender. Refinancing before the due date enables you to meet the due date for the balloon payment and avoid fines related to failing to pay the balloon payment.

Wanting to make contact with a private mortgage lender in Baltimore to talk about funding alternatives for your upcoming project? Submit the contact form on this page or call us and let's talk about the property you have in mind.