Private real estate financing entails getting a short-term mortgage loan via a privately owned company or individual person to be able to purchase, perform improvements on or refinance a property. While conventional lenders, for example, banks have a prolonged, time consuming application process and are likely to be reluctant to give money to a self-employed individual, private mortgage loans in Columbus close fast and are easy qualifying.

That is great for real estate investors because even an individual with weak credit can apply for private money for a real estate loan given that he has a promising project, he has sufficient money for a downpayment, he has proven himself able in real estate, and he has a preplanned exit strategy. Additionally, the fast closing Columbus private real estate mortgages supply you with funding right away, letting you close a deal within weeks.

Normally, investors reach out to a private mortgage lender in Columbus when:

1. They would like to update or make repairs to the home in order to offer it at a much higher price or to bring in higher rents.

   E.g. a past borrower owned a twin-home / duplex. He already retained a significant amount of equity in the building and the monthly rent generated steady revenue. A handful of select home improvements would help him raise the cost of rent, but having a lower credit score of 520, it was very likely for a bank to turn down his loan application. For that reason, the borrower got in touch with Read Rock Capital (Read Rock Capital) to complete a cash-out refinance which gave him financing for 65% of the property's value.

2. They want to merge all of their debts into one single payment.

   Most people find it stressful to deal with countless payments on a monthly basis. To make the situation more manageable, people merge all of their unsecured debts into only one line of credit with one monthly payment.

3. They prefer to take advantage of their house's equity for another home purchase.

   One of Island View's borrowers located in Hawaii owned a home valued at $1M. He wanted to sell the house but that didn't work out and he ultimately was forced to be satisfied with leasing the house to an interested party, with an option to buy at a later time. The rental agreement income made it possible to meet his current mortgage payment, taxes and homeowner's insurance. The person also agreed to pay 200k for a down payment for the 3 year contract. With these sureties to cover the home's foreseeable expenses, he stumbled on another great real estate opportunity and contacted Read Rock Capital to obtain a private mortgage loan close to seventy percent of the property's appraised value. This let him make the deposit for the new property, and at the same time repay his existing mortgage.

4. They need help to meet the balloon payment for the existing loan.

   A real estate investor who currently has an existing private mortgage loan and is unable to pay for the balloon payment because of a change in circumstances can fill out an application for refinancing from a different company. Refinancing prior to the term date allows you to make the due date for the balloon payment and avert any fees and penalties in connection with failing to pay the balloon payment.

Wanting to connect with a private mortgage lender in Columbus to discuss funding alternatives for your upcoming project? Fill out the contact form or call us and let's discuss your project.