Private real estate financing helps investors buy, fix up or refinance a home or property using a short-term loan from a privately owned business or an individual. Whereas typical lending institutions like banks require a lengthy, time consuming application process and are more than likely to be reluctant to loan money to a self-employed client, private mortgage loans in Cabot close fast and are easy to qualify for.

That means that even if you do not have a great credit score, there is still a strong likelihood of qualifying for private money for a real estate loan if your project is deemed to be profitable, you have ample capital reserved for the downpayment, you have shown yourself capable in prior real estate investments, you have significant equity contained in the property or you can show a well-defined plan to pay off the loan. Combined with fast closings of two weeks, private real estate mortgages in Cabot are an ideal alternative for serious real estate investors.

Typically, clients get a hold of a private mortgage lender in Cabot when:

1. They are searching for funds to remodel a property and offer it for sale at a much higher price point or to up the lease amount for tenants.

   By way of example, we had this customer with a 2-family rental. He'd already built up ample equity in the property and the rent was a recurring income source. He desired to perform some improvements to the units in order to maintain high rents, but a below average credit score of 520 meant that a bank would undoubtedly turn down his mortgage application. So the customer called Read Rock Capital (Read Rock Capital) to execute a cash-out refinance that in turn gave him financing for 65% of the property's appraised value.

2. They have numerous debts and prefer to consolidate them.

   Many of us know how stressful it is to make numerous payments each and every month. For this reason, a lot of people make the decision to take advantage of the equity in their home to consolidate their outstanding debts into only one loan which has a single payment per month.

3. They would like to use the existing equity available in an existing property to work on an additional real estate investment.

   As an example, one of Island View's previous borrowers in Hawaii had a place valued at more than a million dollars. Since it was difficult for him to get an interested party for the home, he had somebody who was ready to lease it with the option to buy. The revenue that stemmed from the rental payments paid for his regular mortgage expenses, insurance, and taxes. The tenant also included two hundred thousand dollars in the form of a non-refundable advance payment as he signed the 3 year lease. Having these assurances to cover the home's financial obligations on a recurring basis, he approached Read Rock Capital for a 70% loan-to-value private mortgage loan to aid in his next investment. This gave him ample cash to use for a deposit on his next investment, but also helped him pay off the existing mortgage.

4. They want assistance to satisfy the balloon payment for the existing private loan.

   A real estate investor who already has an existing private mortgage loan and isn't able to afford the balloon payment on account of a change in circumstances can submit an application for refinancing from a different lending company. Refinancing prior to the due date allows the borrower to meet the due date for the balloon payment and avoid penalty charges in connection with failing to pay the balloon payment.

Looking to discuss your investment options with a private mortgage lender in Cabot? Submit the form or call us and let's discuss the project you have in mind.