Private real estate financing entails finding a short-term loan through a privately owned firm or individual as a way to buy, perform upgrades on or refinance a property. Whereas conventional lenders, for example, banks require a prolonged, time consuming application process and in all likelihood will think twice about loaning money to a self-employed customer, private mortgage loans in Bristol close fast and are easy qualifying.

Meaning that even if you do not have a great credit score, you've still got a high probability of obtaining private money for a real estate loan if your project is deemed to be profitable, you have adequate money to use for the down payment, you have shown yourself able in real estate in the past, you have considerable equity in the property or home or you can show a legitimate plan to pay off the loan. In addition to this, if you are looking for a fast closing, you will not see many alternatives better than Bristol private real estate mortgages.

Most borrowers speak with Bristol private mortgage lenders when:

1. A remodeling job or restoration will help to market their property for a much higher price or fetch more rent.

   For example, there was a borrower who owned a 2-family rental property. He had already built up adequate equity in the building and the rent payments was a routine income source. Some select home upgrades would allow him to bump up his rental prices, but with a bad credit score of 520, it was very likely for a bank to turn down the mortgage request. When he got into contact with Read Rock Capital to obtain a loan, we were happy to do a cash-out refinance at 65% of the house's assessed value.

2. They would like to combine all of their unsecured debts into a single loan.

   Numerous outstanding debts with a variety of lending rates are incredibly overwhelming and difficult to keep tabs on. This is why many people choose to make use of the equity in their residence to consolidate each of their debts into just one private loan having a single monthly payment.

3. They wish to take advantage of their house's equity for an additional real estate deal.

   One of Island View's borrowers in Hawaii had a house valued at over $1,000,000. Though it was tough for him to find a buyer for the property, he had found somebody who was willing to lease it having the option to purchase it. The income that stemmed from the lease paid for his regular mortgage expenses, insurance, and taxes. The renter also put two hundred thousand dollars in the form of a non-refundable down payment as part of signing the 3-year agreement. These assurances meant he did not have to be concerned with the home's future expenses, and as a result, when another promising real estate investment opportunity showed up, he came to Read Rock Capital and received a private mortgage loan at 70% LTV. This gave him plenty of capital to put towards a down payment or his next home, but additionally helped him pay down the existing mortgage.

4. They already have an existing loan and are not able to pay the pending balloon payment.

   If an unanticipated incident stops someone from making his balloon payment due date, he could seek out another loan provider to refinance. A refinance will help the borrower avoid missing the cut-off date for the balloon payment and avoid fees and penalties.

Looking to discuss financing programs with a private mortgage lender in Bristol? Complete the contact form on this page or call us and let's discuss the project you have in mind.