Private real estate financing means finding a short-term mortgage via a privately owned business or individual person as a way to buy, carry out upgrades on or refinance a property. Whereas traditional lenders, for example, banks require a prolonged, drawn out application process and are likely to think twice about giving money to a self-employed individual, private mortgage loans in Brighton close fast and have minimal eligibility criteria.

That's fantastic news for real estate investors considering that even someone with lousy credit can qualify for private money for a real estate loan given that he has a deal that shows strong potential, he has plenty of money for a downpayment, he has shown himself able in prior real estate investments, and can show a good exit strategy. And with fast closings of 14 days, private real estate mortgages in Brighton may very well be the ideal choice for real estate investors.

Ordinarily, customers ask Brighton private mortgage lenders to finance their endeavors when:

1. A remodeling job or restoration will help them market the home at a higher price point or get significantly more rent.

   Real example: one of our customers owned a 2-unit rental. He previously built up ample equity in the house and the rent payments was a regular source of income. While some improvements to the units would have enabled him to command more rent, a bank would undoubtedly have turned down the loan request, since he had a credit score of down at 520. After he got in contact with Read Rock Capital to get financing, we were able to complete a cash-out refinance for 65% of the duplex's market value.

2. They've got numerous unsecured debts and want to consolidate them.

   The majority of people find that it's stressful to take care of multiple payments every month. In order to arrange a more manageable situation, people combine each of their outstanding debts into one single mortgage loan with only one monthly payment.

3. They want to utilize the equity available in an existing property or home to work on an additional real estate project.

   As an illustration, a borrower in Hawaii had a home valued at $1,200,000. His idea was to sell the house but it did not work out and he eventually was forced to settle for leasing the place to an interested party, with an option to buy at a future time. The rental agreement income served to meet his current mortgage payment, property taxes and homeowner's insurance. He also received a $200k non-refundable down payment for the 3-year lease agreement. With these sureties covering the property's bills on a regular basis, he called Read Rock Capital to get a seventy percent LTV private mortgage loan for his next real estate investment. The loan helped him put enough money towards a different investment as well as deal with his initial mortgage.

4. The balloon payment for an existing mortgage is owed soon and they can't afford it.

   If someone is unable to make a balloon payment because of unexpected factors, he can try to refinance the loan with another loan provider. A refinance can help the borrower avoid missing the due date for the balloon payment and steer clear of any consequences.

Planning to discuss mortgage options with a private mortgage lender in Brighton? Enter your info into the form or get in touch with us via phone to discuss the property or properties you have in mind.