Many real estate investors count on private real estate financing to buy a new property, or rehab or refinance an existing one. Cedar Rapids private mortgage loans have many advantages — they are fast closing, have minimal eligibility requirements and are also open to self-employed applicants.

That means that even if you don't have a great credit score, you've still got a high probability of getting private money for a real estate loan as long as your project is deemed to be profitable, you have enough capital available for the down payment, you have demonstrated yourself able in past real estate ventures, you have significant equity in the property or home or you have a legitimate plan to pay off the loan. What's more, Cedar Rapids private real estate mortgages close fast to grant you funding right away, helping you close within weeks.

Typically, people reach out to a private mortgage lender in Cedar Rapids when:

1. They're in search of money to repair a property and offer it for sale for a higher price or to up the lease amount for renters.

   As an illustration, one of our borrowers operated a 2-family rental. He had already built ample equity in the building and the monthly rent checks was a routine source of income. Though a few upgrades to the property would have helped him ask for higher rent, a bank would undoubtedly have turned down the loan request, due to the fact his credit score was a mere 520. Right after he got in contact with Read Rock Capital to obtain a loan, we were pleased to complete a cash-out refinance at 65% of the duplex's appraised value.

2. They want to consolidate their personal debts.

   The majority of people find it stressful to make multiple payments each and every month. As a result, lots of people borrow from their home equity to consolidate all of their outstanding debts into just one mortgage loan.

3. They want to take advantage of the existing equity available in their current property to work on a different real estate project.

   As one example, a borrower in Hawaii had a home appraised at $1,200,000. When he was not able to find a buyer for the property, he entered into a lease-option-to-buy deal with an interested party. The rent amount was sufficient to cover the cost of his ongoing mortgage bill, property taxes and homeowner's insurance payments. Additionally, he was given a $200,000 non-refundable downpayment for the 3-year lease. These sureties meant that he no longer had to be concerned with the property's ongoing financial obligations, and as a result, when a new real estate opportunity surfaced, he found Read Rock Capital and got a private mortgage loan at 70% LTV. This let him pay an advance on the down payment for his next investment, and at the same time helped with his existing mortgage.

4. They have a previous private loan and cannot afford the pending balloon payment.

   If an unforeseen mishap stops someone from meeting his balloon payment deadline, he could seek out a new mortgage lender to refinance. A refinance will help him hit the cut-off date for the balloon payment and avoid penalty charges.

Planning to discuss loan alternatives with a private mortgage lender in Cedar Rapids? Complete the contact form on this page or give us a call and let's discuss the property you have in mind.