Private real estate financing entails finding a short-term mortgage via a private business or individual person as a way to purchase, carry out improvements on or refinance a property. As opposed to bank loans, Bixby private mortgage loans close fast, are easy to qualify for and accessible to self-employed customers.

Thus, in case you have poor credit, having a promising opportunity, a substantial down payment, past real estate experience, and a well-defined exit strategy are more crucial in terms of being qualified for private money for a real estate loan. Combined with fast closings of 2 weeks, private real estate mortgages in Bixby may very well be the right choice for ambitious real estate investors.

Primarily, clients count on Bixby private mortgage lenders to fund their endeavors when:

1. They're in search of capital to remodel a house and offer it for a much higher price point or to up the lease amount for tenants.

   For example, we had a client who owned a two-unit rental. He already retained a significant amount of equity available in the house and the rent generated steady cash flow. Although several remodeling work to the place may have enabled him to command higher rent, a bank would likely have turned down the loan application, due to the fact he had a credit score of merely 520. When he contacted Read Rock Capital to obtain a loan, we were pleased to complete a cash-out refinance at 65% of the home's assessed value.

2. They're saddled with multiple personal debts and desire to consolidate them.

   Most people find that it's stressful to manage numerous payments each month. As a result, some individuals get a loan from a property's equity to combine all of their financial debts into one single loan.

3. They want to utilize the equity available in their existing house to do another real estate project.

   As one example, a borrower in Hawaii had a house valued at $1.2M. Because it was challenging for him to find a purchaser for his home, he had identified somebody who was open to lease it having an option to buy. The amount of rent was enough to take care of the cost of his monthly mortgage bill, taxes and homeowner's insurance payments. The tenant also put two hundred thousand dollars in the form of a non-refundable advance payment as part of signing the 3-year lease contract. The signed agreement meant he no longer needed to concern himself with the home's ongoing financial obligations, so when a new real estate investment opportunity surfaced, he came to Read Rock Capital and obtained a private mortgage loan at 70% loan to value. This gave him more than enough cash to use for a down payment on his next investment, but also made it easier for him to pay down the current mortgage.

4. They already have an existing loan and cannot afford the pending balloon payment.

   If a borrower can't pay a balloon payment resulting from unanticipated factors, he can make an effort to refinance the loan with a different mortgage company. Refinancing before the term date allows the borrower to make the due date for the balloon payment and avert any consequences in connection with missing the balloon payment.

Want to discuss mortgage options with a private mortgage lender in Bixby? Submit the form or get in touch with us via phone and let's talk about your property.