Private real estate financing can help investors buy, remodel or refinance a home using a short-term mortgage from a privately owned firm or an individual. Although traditional lenders such as banks necessitate a lengthy, time consuming application process and in all likelihood will hesitate to lend money to a self-employed individual, private mortgage loans in Decatur close fast and have minimal eligibility requirements.

This is very good news for real estate investors since someone with bad credit can apply for private money for a real estate loan as long as he has a deal that shows promise, he has adequate money for a down payment, he has demonstrated himself competent in real estate, and he can show a plan for an exit strategy. Additionally, Decatur private real estate mortgages close fast to grant you financing without delay, letting you close a deal within a few short weeks.

In most cases, borrowers consult Decatur private mortgage lenders to fund their endeavors when:

1. They're looking for money to fix a house and market it for a higher price point or to up the lease amount for tenants.

   As an example, a past borrower owned a twin-home / duplex. He already retained a considerable amount of equity in the house and the rent checks brought in a steady cash flow. He desired to perform some improvements to the units to be able to keep his rents high, but a low credit score of 520 meant that a bank would doubtless turn down his loan request. Accordingly, he came to Read Rock Capital to obtain a cash-out refinance and received financing at 65% LTV.

2. They're stuck with multiple personal debts and need to consolidate them.

   Numerous debts with a range of lending rates are too much to handle and tough to manage. As a result, many individuals get a loan against a property's equity to combine each of their financial debts into just one mortgage loan.

3. They prefer to employ the equity in one home and acquire another one.

   As an example, one of our previous borrowers in Hawaii had a place valued at over one million bucks. When he was not able to secure a buyer for the home, he signed a lease-option-to-buy arrangement with someone. The rental agreement income helped him meet his existing mortgage payment, taxes and insurance. He also was given a $200k non-refundable deposit for the 3-year lease. Having these assurances to handle the property's monthly payments on a regular basis, he phoned Read Rock Capital for a seventy percent loan-to-value private mortgage loan for his subsequent investment. This means that he could make a downpayment for the new property, and also help with his existing mortgage.

4. They need assistance to satisfy the balloon payment for the existing loan.

   A real estate investor who already has an existing private mortgage and isn't able to afford the balloon payment caused by a change in circumstances can submit an application for refinancing from an alternative lending company. A refinance will help the person avoid missing the cut-off date for the balloon payment and prevent any penalty charges.

In search of a private mortgage lender in Decatur to finance your investment purchase? Complete the contact form on this page or get in touch with us via phone to discuss the property or properties you have in mind.