Private real estate financing can help investors buy, renovate or refinance a home or property utilizing a short-term mortgage from a privately owned business or an individual. Whereas standard lenders, for example, banks will require a prolonged, drawn out application process and in all likelihood will be reluctant to loan money to a self-employed customer, private mortgage loans in close fast and have minimal eligibility requirements.

That's a good thing for real estate investors because an individual with poor credit can opt for private money for a real estate loan so long as he has a deal that shows strong potential, he has sufficient cash for a downpayment, he has demonstrated himself capable in real estate, and he can show a sensible exit strategy. In addition to this, if you would like a fast closing, there are no better options than Cordova private real estate mortgages.

Often, customers consult Cordova private mortgage lenders to fund their real estate ventures when:

1. A rehab or renovation can allow them to offer their property for a higher price or ask for significantly more rent.

   E.g. a past client had a duplex. At the time, he retained plenty of equity available in the building and the rent generated steady cash flow. He sought to complete some upgrades to the place to be able to maintain high rents, but a low credit score of 520 meant a bank would undoubtedly turn down the mortgage application. So the client approached Read Rock Capital (Read Rock Capital) to execute a cash-out refinance which gave him financing for 65% of the duplex's appraised value.

2. They wish to merge each of their financial debts into a single loan.

   Most people think it is stressful to make countless payments each month. To successfully set up a more workable situation, some people consolidate all of their financial debts into just one mortgage loan with only one monthly payment.

3. They want to use the equity within their existing property or home to do another real estate investment.

   By way of example, one of Island View's previous borrowers located in Hawaii had a place valued at more than a million bucks. He wanted to sell the house but that did not happen and he ultimately was forced to be satisfied with leasing the place to someone, with an option to buy at a future date. The money that stemmed from the rental payments took care of his ongoing mortgage payment, insurance, and property taxes. The tenant also included $200k in the form of a non-refundable deposit when he signed the 3-year lease agreement. These sureties meant that he did not have to worry about the property's future financial obligations, and thus, when another promising real estate investment opportunity came up, he reached out to Read Rock Capital and got a private mortgage loan at 70% loan to value. This enabled him to make the downpayment for his next investment, and also repay his current mortgage.

4. The balloon payment for a prior loan is due and they can't afford it.

   A real estate investor who currently has an existing private mortgage loan and is not able to pay for the balloon payment thanks to a change in circumstances can submit an application for refinancing from a new lending company. A refinance will help the person avoid missing the cut-off date for the balloon payment and steer clear of any fees and penalties.

Looking to meet a private mortgage lender in Cordova to discuss funding options for your next real estate investment? Submit the contact form or get in touch with us via phone and let's talk about the property or properties you have in mind.