Private real estate financing involves finding a short-term loan via a privately owned business or individual in order to purchase, carry out improvements on or refinance a home. Unlike bank loans, Bellows Falls private mortgage loans close fast, are easy to qualify for and open to self-employed applicants.

So even if you don't have good credit, having a real estate opportunity showing promise for profits, a substantial down payment, prior experience, and a good exit strategy are more important in regards to being eligible for private money for a real estate loan. What's more, Bellows Falls private real estate mortgages close fast to grant you financing right away, allowing you to close a deal within 2-3 weeks.

Frequently, clients confer with Bellows Falls private mortgage lenders to finance their real estate activities when:

1. A remodeling job or renovation can help them market their property at a much higher price point or get more rent.

   As an example, a past client had a duplex. He already had a lot of equity in the building and the rent payments delivered steady income. He sought to perform some renovation to the units in order to keep his rents high, but a low credit score of 520 meant that a bank would turn down his loan application. And so he came to Read Rock Capital to get a cash-out refinance and got a loan at 65% LTV.

2. They're stuck with multiple debts and want to combine them.

   Multiple unsecured debts with various lending rates are often very overwhelming and difficult to manage. This is why a lot of people opt to make the most of the equity available in their home to merge all of their debts into only one private mortgage with a single payment per month.

3. They wish to unlock the equity in one house and purchase another one.

   For instance, one of Island View's customers in Hawaii had a home appraised at more than one million dollars. Though it was challenging for him to find a purchaser for the place, he had identified someone that was wanting to lease it with the option to buy. The money that stemmed from the rental payments took care of his continuing mortgage payment, insurance, and property taxes. The renter also agreed to pay $200,000 as an advance payment for the 3 year agreement. With the help of this collateral to cover the house's foreseeable expenses, he ran across another great real estate investment opportunity and got into contact with Read Rock Capital for a private mortgage loan around 70% of the property's appraised value. This enabled him to pay an advance on the down payment for his next investment, and at the same time repay his present mortgage.

4. They need assistance to satisfy the balloon payment for a previous private loan.

   A person who invests in real estate and already has an existing private loan and isn't able to afford the balloon payment caused by a change in circumstances can apply for refinancing from an alternative lender. Refinancing before the due date allows you to meet the due date for the balloon payment and avert any penalty charges associated with missing the balloon payment.

Looking to discuss your financing plans with a private mortgage lender in Bellows Falls? Fill out the contact form on this page or get in touch with us via phone and let's talk about the project you have in mind.