Private real estate financing gives assistance to real estate investors who want to pay for, renovate or refinance a home using a short-term loan from a private company or an individual. Although typical lending institutions such as banks require a lengthy, drawn out application process and are more than likely to hesitate to offer money to a self-employed client, private mortgage loans in Clovis close fast and are easy qualifying.

This is great news for real estate investors considering that even somebody with weak credit can obtain a private money for a real estate loan so long as he has a deal that shows strong potential, he has adequate money for a downpayment, he has demonstrated himself competent in prior real estate investments, and has a good exit strategy. Combined with fast closings of only 14 days, private real estate mortgages in Clovis may very well be the perfect alternative for real estate investors.

Most individuals use Clovis private mortgage lenders when:

1. They're looking for money to remodel a house and put it up for sale at a much higher price point or to rent it out at a higher monthly amount.

   Real example: one of our borrowers operated a 2-unit rental property. He had already built up adequate equity in the asset and the rent payments was a recurring revenue stream. Although some remodeling work to the property would've enabled him to collect higher rent, a bank would undoubtedly have turned down his mortgage request, because his credit score was merely 520. Right after he got into contact with Read Rock Capital for financing, we were able to do a cash-out refinance at 65% of the house's valuation.

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

   Most people think it is stressful to manage numerous payments every month. For this reason, some people choose to take advantage of the equity in their residence to merge all of their outstanding debts into one loan having a single monthly payment.

3. They prefer to employ the existing equity in one house and use it to acquire a different one.

   As an example, one of Island View's previous clients located in Hawaii had a house valued at more than one million dollars. When he could not find a buyer for the home, he entered into a lease-option-to-buy deal with someone. The cash that stemmed from the rental payments covered his ongoing mortgage payment, home owner's insurance, and taxes. The tenant also gave $200k in the form of a non-refundable downpayment as he signed the three year lease contract. Having these assurances to cover the property's foreseeable financial obligations, he ran across another promising real estate opportunity and got in touch with Read Rock Capital to obtain a private mortgage loan around 70% of the property's estimated value. Meaning that he was able to make the downpayment for the new investment, and also repay his current mortgage.

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

   If someone is unable to make a balloon payment as a result of unexpected factors, he can try and refinance his loan with an alternative lending company. A cash-out refinance helps you complete the balloon payment and escape consequences.

Looking to connect with a private mortgage lender in Clovis to go over loan alternatives for your upcoming project? Submit the form on this page or give us a call and let's talk about the project you have in mind.