Private real estate financing can help investors purchase, remodel or refinance a home or property via a short-term mortgage loan from a privately owned company or an individual. Whereas standard lending institutions like banks will require an extended, drawn out application process and in all likelihood will hesitate to give money to a self-employed customer, private mortgage loans in Broomfield close fast and are easy qualifying.

It means that even if you do not have a great credit score, you've still got a good chance of getting private money for a real estate loan if your real estate project is deemed to be profitable, you have ample capital to use for the down payment, you have proven yourself competent in the real estate market in the past, you have considerable equity in the property or home or you have a clear plan to take care of the loan. In addition, Broomfield private real estate mortgages close fast to grant you funding right away, allowing you to close on a deal within weeks.

Most borrowers depend on Broomfield private mortgage lenders when:

1. They are in need of funds to renovate a house and offer it for sale at a much higher price point or to rent it out at a higher monthly amount.

   As an example, one of our customers had a twin-home / duplex. At the time, he had a significant amount of equity available in the building and the monthly rent generated steady cash flow. He desired to perform some improvements to the units in order to maintain high rents, but a poor credit score of 520 meant that a bank would undoubtedly turn down his mortgage request. So he turned to Read Rock Capital for a cash-out refinance and acquired financing at 65% LTV.

2. They need to combine their debts into a single payment.

   The majority of people find that it's stressful to make numerous payments on a monthly basis. To successfully arrange a more reasonable situation, some people merge each of their debts into only one loan with only one monthly payment.

3. They want to allocate their existing equity in one property and use it to buy a different one.

   One of our borrowers located in Hawaii owned a home valued at $1.2 million. When he was not able to secure a buyer for the house, he signed a lease-option-to-buy arrangement with someone. The rent checks were more than enough to handle his ongoing mortgage payment, taxes and cost of insurance. Additionally, he received a $200,000 non-refundable deposit for the three year agreement. With the help of these sureties to cover the property's foreseeable financial obligations, he came across a new real estate investment opportunity and approached Read Rock Capital to obtain a private mortgage loan close to seventy percent of the property's estimated value. This gave him plenty of cash to put towards a downpayment on his next investment, but additionally helped him pay off the existing mortgage.

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

   If a person is not able to meet a balloon payment due to unexpected causes, he can try to refinance his loan with a different mortgage lender. Refinancing right before the due date allows you to meet the deadline for the balloon payment and avoid penalty charges in connection with failing to make the balloon payment.

Wanting to connect with a private mortgage lender in Broomfield to talk about funding alternatives for your next real estate investment? Submit the form or give us a call to talk about your project.