Private real estate financing involves obtaining a short-term loan from a private business or individual in order to purchase, perform improvements on or refinance a home or property. Bloomington private mortgage loans have many advantages — they close fast, are easy to qualify for and additionally, are offered to self-employed applicants.

That means that no matter the level of your credit score, you still have a good chance of qualifying for private money for a real estate loan assuming that your real estate project is viewed to be profitable, you have sufficient money available for the downpayment, you have demonstrated yourself competent in real estate previously, you have substantial equity in the home or you have a clear-cut plan to take care of the loan. What's more, the fast closing Bloomington private real estate mortgages give you financing right away, helping you close on a deal within weeks.

Most real estate investors work with Bloomington private mortgage lenders when:

1. They would like to remodel or fix up the property or home so they can offer it for sale at an increased price or to fetch higher rents.

   E.g. a past borrower owned a twin-home / duplex. He held enough equity in the building and the rent brought in regular monthly income. He sought to do some upgrades to the property so that he could keep his rents high, but a below average credit score of 520 meant that a bank would undoubtedly turn down his loan application. Right after he got in contact with Read Rock Capital for financing, we were glad to do a cash-out refinance at 65% of the duplex's value.

2. They've got numerous unsecured debts and need to combine them.

   Countless debts with different rates are very overwhelming and difficult to keep tabs on. This is the reason a lot of people opt to utilize the equity in their property to merge their financial debts into a single loan having a single monthly payment.

3. They would like to capitalize on the equity in their current house to work on a different project.

   As one example, a client located in Hawaii owned a property appraised at $1.2M. While it was hard for him to get a buyer for his house, he had found someone who was wanting to lease it having the option to buy. The cash that came from the rent paid for his monthly mortgage payment, insurance, and taxes. The person furthermore consented to pay 200k in the form of a downpayment for the 3 year lease agreement. With the help of these sureties to take care of the house's foreseeable financial obligations, he discovered another promising real estate opportunity and got into contact with Read Rock Capital to obtain a private mortgage loan nearly seventy percent of the property's value. The financing helped him finance his next investment property and also repay his original mortgage.

4. They already have a private loan and are unable to afford the pending balloon payment.

   If an unforeseen event hinders someone from making his balloon payment due date, he can find another mortgage company to refinance. A refinance will help the borrower hit the cut-off date for the balloon payment and avoid consequences.

Interested in discussing financing options with a private mortgage lender in Bloomington? Fill out the contact form on this page or get in touch with us via phone and let's discuss your property.