Private real estate financing entails obtaining a short-term loan from a privately owned company or individual person with the intention to buy, perform improvements on or refinance a property. In contrast to bank loans, Columbus private mortgage loans are fast closing, easy qualifying and offered to self-employed individuals.

Thus, in case you don't have very good credit, having a promising real estate opportunity, a substantial downpayment, previous experience, and a well-defined exit strategy are a great deal more relevant when being qualified for private money for a real estate loan. Additionally, the fast closing Columbus private real estate mortgages grant you funding right away, letting you close within 2-3 weeks.

In general, investors get in touch with a private mortgage lender in Columbus when:

1. They would like to remodel or make repairs to the house to allow them to sell it at a much higher price point or to fetch higher rents.

   One example is a customer who held a 2-unit rental. He already had a lot of equity in the building and the monthly rent generated steady cash flow. He sought to perform some modifications to the units to be able to maintain high rents, but a poor credit score of 520 meant that a bank would doubtless turn down his loan application. Right after he got into contact with Read Rock Capital to get a loan, we were glad to complete a cash-out refinance at 65% of the property's value.

2. They need to merge all of their outstanding debts into one single loan.

   Multiple outstanding debts with different lending rates are very overwhelming and difficult to keep tabs on. For this reason, a lot of people decide to make the most of the equity available in their residence to merge all of their outstanding debts into only one mortgage loan having a single payment per month.

3. They would like to utilize the existing equity within their current property to work on another real estate investment.

   For instance, one of our past customers located in Hawaii had a place valued at more than a million bucks. While it was tough for him to find an interested party for the property, he had found a person who was willing to lease it having an option to purchase it. The rent checks were more than enough to cover the cost of his monthly mortgage bill, property taxes and insurance payments. The tenant also went ahead and paid him $200,000 in the form of an advance payment for the three year lease contract. Using these sureties to cover the home's bills on an ongoing basis, he phoned Read Rock Capital to get a seventy percent loan-to-value private mortgage loan for his subsequent purchase of an investment property. This allowed him to pay an advance on the deposit for his next investment, and also helped with his current mortgage.

4. The balloon payment for a previous loan is owed soon and they cannot handle it.

   If someone cannot make a balloon payment because of unanticipated factors, he can attempt to refinance the loan with another lender. A cash-out refinance can help the person make the balloon payment and evade penalty.

Are you searching for a private mortgage lender in Columbus to fund your investment purchase? Submit the contact form or get in touch with us via phone to talk about your property.