Private real estate financing means obtaining a short-term mortgage through a private business or individual in order to buy, perform upgrades on or refinance a home. While typical lending institutions such as banks will require an extended, drawn out application process and are likely to hesitate to loan money to a self-employed client, private mortgage loans in Bowie close fast and are easy to qualify for.

It means that no matter the caliber of your credit score, you've still got a good chance of getting private money for a real estate loan provided that your investment is presumed to be profitable, you have ample capital to set aside for the down payment, you have proven yourself capable in real estate in the past, you have substantial equity contained in the home or property or you have a clear-cut plan to pay off the loan. And having fast closings of 2 weeks, private real estate mortgages in Bowie may very well be the perfect solution for real estate investors.

Most often, clients pay a visit to Bowie private mortgage lenders to finance their real estate activities when:

1. They want to update or fix up the property to allow them to offer it at a much higher price point or to get higher monthly rental fees.

   As an illustration, one of our clients operated a 2-family rental. At the time, he had a good deal of equity in the building and the rent checks generated steady revenue. Although a few enhancements to the place could have enabled him to collect higher rent, a bank would undoubtedly have turned down his mortgage request, because his credit score was down at 520. So the borrower got in touch with Read Rock Capital (Read Rock Capital) to do a cash-out refinance which gave him a loan for 65% of the property's valuation.

2. They've got multiple outstanding debts and need to consolidate them.

   Most people find that it's stressful to manage numerous payments every month. To help make the situation more reasonable, some people combine their outstanding debts into only one line of credit with one monthly payment.

3. They want to release the equity in one home and use it to invest in a different one.

   One of Island View's borrowers located in Hawaii owned a property worth over $1,000,000. While it was difficult for him to secure a purchaser for the home, he had identified a person that was willing to lease it with an option to buy. The rent amount was more than enough to pay for the cost of his monthly mortgage bill, taxes and insurance obligations. Additionally, he received a two hundred thousand dollars non-refundable advance payment for the three year lease. Having these sureties to handle the home's financial obligations on an ongoing basis, he approached Read Rock Capital for a 70% LTV private mortgage loan to aid in his next real estate investment. This gave him ample cash to put towards a deposit or his next home, but additionally helped him pay down the existing mortgage.

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

   If a person cannot meet a balloon payment as a result of unanticipated causes, he can try and refinance the loan with an alternative lender. A cash-out refinance helps the borrower make the balloon payment and evade penalty.

Looking to discuss loan options with a private mortgage lender in Bowie? Submit the contact form on this page or give us a call to talk about your property.