Private real estate financing involves finding a short-term mortgage loan via a private business or individual person with the intention to purchase, perform improvements on or refinance a property. Whereas standard lenders like banks necessitate an extended, drawn out application process and are more than likely to be reluctant to lend money to a self-employed individual, private mortgage loans in Deer Lodge close fast and have minimal eligibility criteria.

That's great for investors considering that someone with poor credit can qualify for private money for a real estate loan given that he has a project that shows promise, he has adequate cash for a down payment, he has proven himself capable in earlier real estate projects, and he has a preplanned exit strategy. Combined with fast closings of only fourteen days, private real estate mortgages in Deer Lodge may very well be the ideal alternative for ambitious real estate investors.

Usually, customers get a hold of a private mortgage lender in Deer Lodge when:

1. They want to find funds to fix up a property or home and put it up for sale for a higher price point or to rent it out at a higher monthly amount.

   As an illustration, one of our borrowers operated a two-family rental. He had enough equity available in the asset and the rent generated regular income each month. Although a few remodeling work to the units would have enabled him to ask for higher rent, a bank would likely have turned down the loan application, considering that his credit score was a mere 520. And so he came to Read Rock Capital to do a cash-out refinance and got a loan at 65% LTV.

2. They would like to combine all of their outstanding debts into one loan.

   Many people think it is stressful to deal with countless payments every month. On that basis, some individuals get a loan from their home's equity to merge all their debts into one loan payment.

3. They want to release the equity in one property or home and acquire another one.

   One of Island View's clients located in Hawaii owned a property worth $1.2 million. He wanted to sell the house but that didn't happen and he eventually had to be satisfied with leasing the property to an interested party, with an option to buy at a future time. The lease payments served to meet his existing mortgage payment, taxes and insurance. Additionally, he received a $200k non-refundable deposit for the 3 year lease agreement. These assurances meant he no longer needed to be concerned with the property's future expenses, so when a new investment opportunity surfaced, he came to Read Rock Capital and obtained a private mortgage loan at 70% LTV. This enabled him to make the down payment for his next investment, and furthermore pay down his present mortgage.

4. They already have a preexisting mortgage and can't pay the pending balloon payment.

   If a borrower is unable to meet a balloon payment as a result of unanticipated causes, he can seek to refinance the loan with a different mortgage company. Refinancing prior to the term date helps you to make the deadline for the balloon payment and stay clear of penalty charges in connection with missing the balloon payment.

Searching for a private mortgage lender in Deer Lodge to fund your investment purchase? Fill out the contact form on this page or give us a call to discuss your project.