Many real estate investors use private real estate financing to buy a new home or property, or update or refinance one they already own. While traditional lending institutions like banks require a lengthy, drawn out application process and in all likelihood will be reluctant to lend money to a self-employed client, private mortgage loans in Bethany close fast and are easy to qualify for.

That's why, even if you have poor credit, having a promising opportunity, a significant down payment, prior experience, and an intelligible exit strategy are much more important in regards to being approved for private money for a real estate loan. Additionally, the fast closing Bethany private real estate mortgages ensure that you get financing without delay, letting you close a deal within 2 or 3 weeks.

Most borrowers depend on Bethany private mortgage lenders when:

1. They want to renovate or repair the home to be able to offer it at a higher price point or to charge higher rents.

   One example is a borrower who owned a 2-family rental property. He had already built up adequate equity available in the property and the monthly rent checks was a recurring source of income. Though several improvements to the units would've enabled him to command more rent, a bank would likely have turned down the loan request, due to the fact his credit score was a mere 520. Shortly after he contacted Read Rock Capital for financing, we were pleased to complete a cash-out refinance for 65% of the home's market value.

2. They wish to consolidate debts.

   Most people find that it's stressful to take care of numerous payments each month. To successfully put together a more workable situation, people consolidate each of their financial debts into one single line of credit with just one monthly payment.

3. They would like to take advantage of the equity in their current house to work on an additional real estate investment.

   For example, a customer in Hawaii owned a house valued at $1.2M. His plans to sell the house didn't happen and he eventually was forced to settle for leasing the house to someone, with an option to buy down the road. The rent checks were more than enough to handle his regular mortgage payment, taxes and insurance obligations. Additionally, he was given a $200,000 non-refundable down payment for the 3 year agreement. The signed agreement meant that he no longer had to worry about the property's ongoing expenses, and as a result, when a new real estate opportunity showed up, he found Read Rock Capital and obtained a private mortgage loan at seventy percent loan to value. This not only gave him plenty of money to put towards a deposit or his next property, but also made it easier for him to pay off the existing mortgage.

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

   A person who invests in real estate and currently has an existing private mortgage loan and cannot pay for the balloon payment thanks to a change in circumstances can apply for refinancing from an alternative loan company. Refinancing before the due date helps you to meet the deadline for the balloon payment and avoid penalty charges associated with failing to make the balloon payment.

Wanting to make contact with a private mortgage lender in Bethany speak about financing programs for your upcoming investment? Submit the contact form on this page or call us and let's discuss your project.