Private real estate financing helps investors purchase, fix up or refinance a property via a short-term mortgage from a private firm or an individual. While typical lending institutions, for example, banks will require an extended, drawn out application process and are more than likely to hesitate to lend money to a self-employed client, private mortgage loans in Cambridge close fast and are easy to qualify for.

That means that even if your credit score just went through the wringer, you've still got a good chance of obtaining private money for a real estate loan provided that your project is viewed to be profitable, you have enough money to use for the down payment, you have demonstrated yourself able in earlier real estate investments, you have sizeable equity contained in the home or you have a well-defined plan to pay off the loan. Additionally, Cambridge private real estate mortgages close fast to ensure that you get funding right away, helping you close on a deal within 2-3 weeks.

Generally, investors contact a private mortgage lender in Cambridge when:

1. They're looking for capital to remodel a property and market it at a much higher price point or to up the lease amount for tenants.

   E.g. a past client had a duplex. He had already built up ample equity in the property and the rent payments was a routine source of income. Though some improvements to the place might have helped him command more rent, a bank would definitely have turned down his mortgage request, considering that he had a credit score of a mere 520. Hence, the client approached Read Rock Capital (Read Rock Capital) to execute a cash-out refinance which in turn got him a loan for 65% of the home's assessed value.

2. They're saddled with numerous outstanding debts and prefer to consolidate them.

   The majority of people think it is stressful to manage multiple payments each and every month. To successfully make the situation more reasonable, people merge their unsecured debts into only one line of credit with one payment per month.

3. They want to utilize their home's existing equity for another home purchase.

   As an example, one of Island View's clients in Hawaii had a place valued at more than one million bucks. He wanted to sell the house but that did not work out and he ultimately had to be content with leasing the property, with the option to purchase it at a later time. The funds that came from the rental payments took care of his continuing mortgage payment, insurance, and property taxes. The person furthermore went ahead and paid him 200k in the form of an advance payment for a three year lease agreement. Having this collateral to cover the house's foreseeable expenses, he came across a new real estate investment opportunity and got into contact with Read Rock Capital to obtain a private mortgage loan nearly seventy percent of the property's valuation. Meaning that he could make his down payment for his next investment, and also repay his current mortgage.

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

   A real estate investor who currently has an existing private mortgage loan and is unable to pay for the balloon payment thanks to a change in circumstances can fill out an application for refinancing from another lender. Refinancing before the term date enables you to meet the deadline for the balloon payment and avoid penalties associated with missing the balloon payment.

Hoping to meet a private mortgage lender in Cambridge to discuss loan alternatives for your next project? Fill out the form or get in touch with us via phone to discuss the project you have in mind.