Private real estate financing means getting a short-term mortgage loan via a private company or individual with the intention to buy, carry out improvements on or refinance a home or property. Unlike bank loans, Decatur private mortgage loans are fast closing, have minimal eligibility requirements and offered to self-employed applicants.

It means that whether or not you have a good credit score, you've still got a good chance of getting private money for a real estate loan if your undertaking is regarded as profitable, you have enough capital reserved for the down payment, you have proven yourself able in real estate in the past, you have sizeable equity in the property or you can show a clear plan to repay the loan. And having fast closings of only 2 weeks, private real estate mortgages in Decatur may very well be the right alternative for serious real estate investors.

Usually, customers reach out to a private mortgage lender in Decatur when:

1. They are searching for funds to fix a home and put it up for sale at a much higher price point or to up the lease amount for renters.

   As an illustration, one of our applicants operated a two-family rental property. At the time, he had plenty of equity available in the building and the monthly rent generated steady revenue. He wanted to do some upgrades to the property so that he could maintain high rents, but a below average credit score of 520 meant a bank would turn down the loan request. So he came to Read Rock Capital for a cash-out refinance and received a loan at 65% LTV.

2. They would like to combine all their outstanding debts into just one payment.

   A lot of people find it stressful to manage countless payments every month. To successfully make the situation more reasonable, people merge all their unsecured debts into just one loan with one payment per month.

3. They would like to use their house's existing equity for a different real estate deal.

   Here is an example. A client located in Hawaii had a property valued at $1,200,000. When he was not able to procure a buyer for the home, he agreed to a lease-option-to-buy deal with an interested party. The rent amount was enough to take care of his monthly mortgage payment, property taxes and insurance obligations. The tenant also included $200k for a non-refundable down payment when he signed the 3-year lease agreement. Using these sureties to cover the property's financial obligations on a regular basis, he approached Read Rock Capital to get a 70% LTV private mortgage loan to help with his next real estate investment. This not only gave him plenty of money to put towards a down payment or his next investment, but also made it easier for him to repay the current mortgage.

4. They want help to satisfy the balloon payment for the existing mortgage loan.

   If an unforeseen event stops someone from hitting his balloon payment deadline, he could approach another mortgage lender to refinance. A refinance will help the borrower avoid missing the due date for the balloon payment and prevent any fees and penalties.

Looking to make contact with a private mortgage lender in Decatur speak about financing alternatives for your next investment? Submit the contact form on this page or give us a call to talk about your project.