Private real estate financing entails getting a short-term loan through a private firm or individual to be able to buy, carry out upgrades on or refinance a property or home. Cape Elizabeth private mortgage loans have many advantages — they are fast closing, have minimal eligibility criteria and are also open to self-employed individuals.

So while it's possible you have bad credit, having a real estate opportunity showing promise for profits, a considerable down payment, past experience in real estate, and a clear-cut exit strategy are much more crucial in terms of being eligible for private money for a real estate loan. In addition, the fast closing Cape Elizabeth private real estate mortgages supply you with financing without delay, allowing you to close on a deal within 2 or 3 weeks.

Commonly, people get in touch with a private mortgage lender in Cape Elizabeth when:

1. They're in search of funds to renovate a property or home and market it for a much higher price or to up the lease amount for renters.

   For example, we had a client who owned a two-unit rental. At the time, he retained a lot of equity in the building and the rent checks delivered steady income. He desired to do some upgrades to the property to help keep his rents high, but a lower credit score of 520 meant a bank would turn down his mortgage request. When he approached Read Rock Capital to obtain financing, we were able to complete a cash-out refinance for 65% of the duplex's valuation.

2. They're saddled with multiple personal debts and need to combine them.

   Countless outstanding debts with a variety of interest rates are incredibly overwhelming and difficult to keep an eye on. Due to this, lots of people do a loan from their home equity to merge all of their debts into one loan.

3. They would like to allocate the existing equity in one home or property and invest in another one.

   For instance, one of our past customers in Hawaii had a property appraised at more than one million dollars. While it was difficult for him to get a buyer for the house, he had identified someone that was open to lease it with the option to buy. The rent checks were more than enough to take care of his ongoing mortgage payment, property taxes and cost of insurance. The renter additionally included $200,000 in the form of a non-refundable deposit when he signed the 3-year agreement. The signed agreement meant he did not have to be concerned about the property's ongoing expenses, and thus, when a new real estate investment opportunity showed up, he found Read Rock Capital and obtained a private mortgage loan at seventy percent LTV. This allowed him to pay an advance on the down payment for the new investment, and furthermore helped with his current mortgage.

4. They have an existing private loan and are unable to afford the looming balloon payment.

   A real estate investor who already has an existing private mortgage loan and is not able to afford the balloon payment caused by a change in circumstances can submit an application for refinancing from a new lending company. A cash-out refinance can help the borrower pay the balloon payment and evade penalty.

Searching for a private mortgage lender in Cape Elizabeth to finance your investment purchase? Complete the form on this page or get in touch with us via phone to discuss the project you have in mind.