Many real estate investors turn to private real estate financing to acquire a new home, or rehab or refinance one they already own. Dearborn private mortgage loans have many advantages — they are fast closing, have minimal eligibility requirements and additionally, are available for self-employed individuals.

So while you might don't have great credit, having a promising opportunity, a significant down payment, previous real estate experience, and an intelligible exit strategy are far more relevant when being eligible for private money for a real estate loan. And having fast closings of 2 weeks, private real estate mortgages in Dearborn may very well be the perfect choice for ambitious real estate investors.

In general, clients seek out a private mortgage lender in Dearborn when:

1. They need to update or make repairs to the property or home so they can sell it at an increased price point or to bring in higher monthly rental fees.

   As an example, a past investor owned a twin-home / duplex. He held a great deal of equity in the house and the rent generated routine monthly income. He sought to complete some improvements to the property to help maintain high rents, but a below average credit score of 520 meant that a bank would turn down his loan application. Shortly after he got in touch with Read Rock Capital to get a loan, we were happy to do a cash-out refinance for 65% of the property's market value.

2. They wish to merge their unsecured debts into just one payment.

   Multiple outstanding debts with varying rates can be quite overwhelming and tough to keep an eye on. This is the reason numerous people decide to make use of the equity available in their house to merge their debts into only one private loan which has a lone monthly payment.

3. They want to unlock the equity in one property and use it to purchase a different one.

   One of Island View's borrowers in Hawaii had a residence valued at $1.2 million. His plans to sell the house never materialized and he eventually was forced to settle for leasing the property to someone, with the option to purchase it at a later date. The funds that came from the lease contract paid for his monthly mortgage bill, insurance, and taxes. The renter additionally put $200,000 for a non-refundable down payment when he signed the three year lease contract. Having these assurances to handle the property's expenses on a recurring basis, he contacted Read Rock Capital to obtain a seventy percent LTV private mortgage loan for his upcoming real estate investment. This not only gave him enough money to use for a down payment or his next property, but additionally helped him pay down the current mortgage.

4. They have an existing loan and are not able to afford the pending balloon payment.

   A real estate investor who has a prior private mortgage and isn't able to afford the balloon payment because of a change in circumstances can fill out an application for refinancing from an alternative lending company. A refinance can help him avoid missing the due date for the balloon payment and avoid penalties.

Want to discuss loan alternatives with a private mortgage lender in Dearborn? Submit the contact form or get in touch with us via phone and let's discuss the property you have in mind.