Private real estate financing can help investors purchase, fix up or refinance a property or home utilizing a short-term loan from a private company or an individual. While conventional lenders, for example, banks require a lengthy, drawn out application process and are likely to hesitate to loan money to a self-employed applicant, private mortgage loans in Bristol close fast and have minimal eligibility requirements.

Thus, even if you have poor credit, having a promising real estate opportunity, a substantial down payment, previous experience in real estate, and a good exit strategy are more important when it comes to being qualified for private money for a real estate loan. Combined with fast closings of only two weeks, private real estate mortgages in Bristol may very well be the right solution for ambitious real estate investors.

Most real estate professionals work with Bristol private mortgage lenders when:

1. They wish to update or repair the home and property so they can offer it for sale at a higher price point or to get higher monthly rental fees.

   By way of example, there was a client who owned a two-family rental property. At the time, he had a lot of equity in the property and the monthly rent generated steady cash flow. He wanted to complete some upgrades to the place to be able to keep his rents high, but a poor credit score of 520 meant that a bank would turn down the mortgage request. Consequently, the client contacted Read Rock Capital (Read Rock Capital) to do a cash-out refinance which got him financing for 65% of the duplex's appraised value.

2. They would like to combine their unpaid debts.

   Numerous outstanding debts with a range of interest rates are often too much to handle and hard to keep tabs on. Due to this, many individuals get a loan from their home's equity to combine all their financial debts into just one loan.

3. They would like to release the equity in one home or property and use it to buy another one.

   One of Island View's borrowers located in Hawaii had a house worth $1M. Because it was tough for him to get a buyer for his house, he had identified a person who was ready to lease it having an option to buy. The revenue that stemmed from the lease contract paid for his ongoing mortgage expenses, insurance, and property taxes. The tenant also put two hundred thousand dollars towards a non-refundable down payment as part of signing the 3-year contract. These sureties meant he did not have to be concerned with the home's ongoing expenses, and as a result, when another promising investment opportunity surfaced, he found Read Rock Capital and got a private mortgage loan at seventy percent LTV. The loan helped him afford his next investment property and also pay down his primary mortgage.

4. They already have a preexisting mortgage and are unable to pay the looming balloon payment.

   If an unforeseen event hinders someone from hitting his balloon payment due date, he could seek out another mortgage lender to refinance. Refinancing before the term date helps the borrower to meet the deadline for the balloon payment and avoid consequences associated with missing the balloon payment.

Do you need a private mortgage lender in Bristol to finance your investment purchase? Complete the contact form or get in touch with us via phone and let's talk about your property.