Private real estate financing involves obtaining a short-term loan through a private business or individual with the intention to purchase, perform improvements on or refinance a home or property. Dearborn Heights private mortgage loans have many advantages — they are fast closing, have minimal eligibility requirements and are also open to self-employed borrowers.

This is a good thing for investors because even somebody with lousy credit can qualify for private money for a real estate loan given that he has a deal that shows strong potential, he has enough cash for a downpayment, he has demonstrated himself capable in past real estate projects, and has a good exit strategy. Combined with fast closings of just 2 weeks, private real estate mortgages in Dearborn Heights are the right solution for real estate investors.

Most often, borrowers consult Dearborn Heights private mortgage lenders to finance their real estate activities when:

1. They need funds to fix a home and offer it for sale at a higher price or to rent it out at a higher monthly amount.

   Real example: one of our clients operated a two-unit rental. He had an abundance of equity available in the building and the rent payments brought in routine monthly income. He sought to perform some improvements to the property to be able to keep his rents high, but a poor credit score of 520 meant a bank would undoubtedly turn down his mortgage application. So the client called Read Rock Capital (Read Rock Capital) to execute a cash-out refinance that in turn got him a loan for 65% of the duplex's appraised value.

2. They would like to combine all their unsecured debts into one single payment.

   Many people find that it's stressful to manage numerous payments each month. To successfully arrange a more workable situation, some people merge all their financial debts into a single mortgage loan with one payment per month.

3. They wish to release the existing equity in one home or property and buy a different one.

   As one example, a customer in Hawaii had a property appraised at $1.2M. Though it was tough for him to find a buyer for the home, he had a person that was ready to lease it having an option to purchase it. The rent checks were enough to handle the cost of his ongoing mortgage bill, property taxes and cost of homeowner's insurance. The renter additionally gave $200k towards a non-refundable down payment when he signed the 3-year agreement. These assurances meant that he no longer needed to concern himself with the home's ongoing financial obligations, so when a new real estate investment opportunity showed up, he found Read Rock Capital and got a private mortgage loan at seventy percent loan to value. The money helped him finance a new investment and also pay down his initial mortgage.

4. The balloon payment for their current private mortgage is due and they can't afford it.

   If an unexpected incident prevents a borrower from hitting his balloon payment due date, he could seek out a different loan provider to refinance. A refinance can help the borrower hit the due date for the balloon payment and steer clear of any fees and penalties.

Looking to make contact with a private mortgage lender in Dearborn Heights to talk about loan options for your next real estate investment? Enter your info into the form on this page or give us a call to talk about your project.