Private real estate financing entails getting a short-term mortgage loan from a private company or individual person in order to buy, carry out improvements on or refinance a property. Unlike bank loans, Chester private mortgage loans close fast, are easy to qualify for and available to self-employed individuals.

That is very good news for investors because even somebody with lousy credit can qualify for private money for a real estate loan provided that he has a deal that shows strong potential, he has adequate cash for a downpayment, he has proven himself capable in earlier real estate investments, and he can show a preplanned exit strategy. In addition, Chester private real estate mortgages close fast to grant you funding without delay, letting you close a deal within weeks.

In general, customers seek out a private mortgage lender in Chester when:

1. They want funds to remodel a house and market it at a much higher price or to rent it out for more money.

   As an illustration, one of our customers owned a two-unit rental. He held enough equity in the house and the rent payments generated regular income each month. A handful of select home upgrades would undoubtedly allow him to raise his rents, but with a poor credit score of 520, it was very certain for a bank to turn down the mortgage application. After he got in contact with Read Rock Capital for financing, we were glad to complete a cash-out refinance for 65% of the property's appraised value.

2. They want to combine their debts.

   Numerous unsecured debts with various interest rates can be quite overwhelming and hard to keep tabs on. To set up a more workable situation, people consolidate each of their outstanding debts into only one line of credit with one payment per month.

3. They would like to employ the existing equity in one home and use it to purchase another one.

   One of our customers in Hawaii owned a house worth $1M. His plans to sell the house did not work out and he eventually had to settle for leasing the home, with an option to purchase it down the road. The amount of rent was more than enough to handle the cost of his monthly mortgage bill, taxes and insurance obligations. The renter also included $200k towards a non-refundable downpayment as he signed the three year agreement. Using these assurances to cover the property's bills on a regular basis, he called Read Rock Capital for a 70% LTV private mortgage loan to help with his next purchase of an investment property. Meaning that he was able to make a downpayment for the new investment, and also pay down his current mortgage.

4. The balloon payment for a preexisting mortgage is owed soon and they can not pay it.

   If someone is not able to make a balloon payment thanks to unforeseen causes, he can make an effort to refinance the loan with a new lender. Refinancing ahead of the term date enables you to meet the deadline for the balloon payment and avert any fines associated with missing the balloon payment.

Are you searching for a private mortgage lender in Chester to fund your real estate investment? Submit the form or give us a call to discuss your property.