Private real estate financing gives assistance to real estate investors who want to purchase, fix up or refinance a property utilizing a short-term loan from a private firm or an individual. Whereas conventional lenders such as banks require an extended, drawn out application process and in all likelihood will be reluctant to give money to a self-employed client, private mortgage loans in Branford close fast and are easy to qualify for.

That's a good thing for real estate investors considering that even somebody with weak credit can apply for private money for a real estate loan as long as he has a project that shows promise, he has plenty of money for a down payment, he has proven himself competent in the real estate market, and can show a sensible exit strategy. And having fast closings of only two weeks, private real estate mortgages in Branford are the right choice for ambitious real estate investors.

Frequently, people consult Branford private mortgage lenders to provide capital for their endeavors when:

1. A rehab or restoration will make it possible to offer the house for a much higher price point or get extra rent.

   E.g. a past investor owned a duplex. He had a great deal of equity available in the asset and the rent checks generated regular income each month. Some choice home upgrades would allow him to increase his rents, but because of a low credit score of 520, it was very likely that a bank would turn down the mortgage request. After he approached Read Rock Capital to get financing, we were pleased to do a cash-out refinance for 65% of the house's valuation.

2. They're stuck with multiple debts and need to consolidate them.

   Multiple unsecured debts with a range of rates are very overwhelming and challenging to keep track of. In order to set up a more workable situation, people combine all their financial debts into an individual loan with just one monthly payment.

3. They wish to use their property's existing equity for another real estate deal.

   One of our borrowers in Hawaii had a property valued at over $1,000,000. His plans to sell the house didn't happen and he eventually had to be content with leasing the house, with an option to buy at a later date. The funds that came from the rent covered his ongoing mortgage payment, insurance, and property taxes. The renter also agreed to pay him two hundred thousand dollars as an advance payment for a 3-year contract. These assurances meant he no longer had to be concerned with the property's ongoing financial obligations, so when another promising investment opportunity showed up, he came to Read Rock Capital and got a private mortgage loan at seventy percent LTV. The borrowed funds helped him pay for a different investment property and also deal with his original mortgage.

4. The balloon payment for their current private mortgage is due and they cannot pay it.

   A person who invests in real estate and has a previous private loan and is not able to pay for the balloon payment thanks to a change of circumstances can fill out an application for refinancing from a new lender. A refinance will help the person avoid missing the cut-off date for the balloon payment and prevent any fines.

Looking to connect with a private mortgage lender in Branford to talk about financing alternatives for your upcoming investment? Enter your info into the contact form on this page or get in touch with us via phone to discuss the property or properties you have in mind.