Private real estate financing can help investors purchase, fix up or refinance a home or property using a short-term mortgage loan from a private company or an individual. Although typical lending institutions such as banks will require a lengthy, time consuming application process and in all likelihood will be reluctant to loan money to a self-employed individual, private mortgage loans in Cambridge close fast and have minimal eligibility criteria.

It means that irrespective of the quality of your credit score, you still have a high probability of receiving private money for a real estate loan provided that your project is presumed to be profitable, you have sufficient money to use for the down payment, you have shown yourself competent in prior real estate projects, you have substantial equity contained in the home or property or you can show a legitimate plan to take care of the loan. And with fast closings of just 2 weeks, private real estate mortgages in Cambridge may very well be the right solution for ambitious real estate investors.

Most real estate professionals turn to Cambridge private mortgage lenders when:

1. They're in search of capital to repair a property or home and put it up for sale at a much higher price point or to up the lease amount for renters.

   By way of example, we had this client with a 2-family rental. He already had a significant amount of equity available in the house and the monthly rent delivered steady revenue. He sought to complete some upgrades to the units to be able to maintain high rents, but a below average credit score of 520 meant that a bank would undoubtedly turn down his loan request. Accordingly, he reached out to Read Rock Capital to get a cash-out refinance and acquired a loan at 65% LTV.

2. They want to combine all of their financial debts into one payment.

   Many of us think it is stressful to take care of countless payments every month. To successfully make the situation more reasonable, people consolidate all of their outstanding debts into a single loan with one payment per month.

3. They would like to employ the existing equity in one house and purchase another one.

   To provide an example, a homeowner located in Hawaii owned a home valued at $1,200,000. His plans to sell the house never transpired and he ultimately was forced to settle for leasing the home to an interested party, with the option to purchase it at a future time. The rent amount was adequate to cover the cost of his monthly mortgage bill, property taxes and insurance payments. The renter additionally put $200k for a non-refundable advance payment when he signed the three year lease contract. The signed agreement meant he did not have to be concerned with the property's future financial obligations, and as a result, when another great real estate opportunity surfaced, he found Read Rock Capital and obtained a private mortgage loan at seventy percent LTV. The loan helped him put enough money towards a new investment and also pay down his initial mortgage.

4. They want help to meet the balloon payment for the existing private loan.

   If an unexpected mishap prevents someone from making his balloon payment deadline, he could approach an alternative loan company to refinance. A refinance will help the borrower hit the due date for the balloon payment and prevent any fees and penalties.

Hoping to find a private mortgage lender in Cambridge to help you afford your investment purchase? Enter your info into the contact form or get in touch with us via phone and let's talk about your project.