Private real estate financing means finding a short-term mortgage through a privately owned company or individual in order to buy, carry out improvements on or refinance a property or home. While typical lenders such as banks have an extended, time consuming application process and in all likelihood will hesitate to give money to a self-employed individual, private mortgage loans in Chicago close fast and are easy to qualify for.

That is very fortunate for investors because anyone with weak credit can opt for private money for a real estate loan as long as he has a project that shows promise, he has enough money for a downpayment, he has proven himself capable in the real estate market, and he can show a good exit strategy. What's more, Chicago private real estate mortgages close fast to ensure that you get financing right away, letting you close on a deal within two to three weeks.

Typically, customers reach out to a private mortgage lender in Chicago when:

1. They want to remodel or make repairs to the home in order to offer it for sale at a much higher price or to charge higher monthly rental fees.

   To illustrate, one of our borrowers had a twin-home / duplex. At the time, he retained a significant amount of equity available in the house and the rent checks brought in a steady income. He wanted to complete some improvements to the units to help maintain high rents, but a below average credit score of 520 meant that a bank would undoubtedly turn down his loan application. So he came to Read Rock Capital for a cash-out refinance and got a loan at 65% LTV.

2. They want to combine their debts.

   Many people think it is stressful to take care of numerous payments each and every month. To make the situation more reasonable, some people combine all of their financial debts into only one loan with one monthly payment.

3. They prefer to employ the equity in one home or property and use it to buy a different one.

   As one example, a client located in Hawaii had a home appraised at $1,200,000. Since it was challenging for him to secure an interested party for the home, he had found somebody who was ready to lease it with an option to buy. The lease payouts helped him meet his existing mortgage payment, taxes and homeowner's insurance. In addition, he was given a two hundred thousand dollars non-refundable down payment for the three year lease contract. These sureties meant he did not have to worry about the home's ongoing expenses, and as a result, when another promising real estate opportunity came up, he found Read Rock Capital and obtained a private mortgage loan at 70% LTV. The loan helped him afford a different investment property as well as deal with his initial mortgage.

4. They already have a mortgage and cannot pay the pending balloon payment.

   A person who invests in real estate and has a previous private loan and is unable to pay for the balloon payment thanks to a change of circumstances can fill out an application for refinancing from another company. A cash-out refinance helps the borrower make the balloon payment and escape fines.

Want to discuss your financing alternatives with a private mortgage lender in Chicago? Complete the contact form on this page or call us to discuss the property or properties you have in mind.