Private real estate financing means getting a short-term mortgage through a private business or individual person with the intention to purchase, carry out upgrades on or refinance a home or property. Unlike loans from banks, Dover private mortgage loans are fast closing, easy qualifying and accessible to self-employed individuals.

That means that irrespective of the caliber of your credit score, you've still got a good chance of receiving private money for a real estate loan provided that your undertaking is viewed to be profitable, you have ample money reserved for the downpayment, you have shown yourself competent in earlier real estate ventures, you have substantial equity contained in the property or you have a clear plan to pay off the loan. And having fast closings of just fourteen days, private real estate mortgages in Dover are the right solution for serious real estate investors.

Mostly, people consult Dover private mortgage lenders to lend money for their real estate ventures when:

1. They wish to remodel or repair the home and property so they can offer it at a higher price point or to fetch higher rents.

   To illustrate, one of our customers owned a duplex. He'd already built up considerable equity in the building and the rent payments was a recurring source of income. He sought to do some renovation to the place so that he could maintain high rents, but a below average credit score of 520 meant a bank would turn down his loan request. When he got in touch with Read Rock Capital for a loan, we were able to do a cash-out refinance for 65% of the property's assessed value.

2. They would like to combine unpaid debts.

   Countless debts with varying interest rates can be very overwhelming and challenging to keep an eye on. Because of this, numerous people opt to make use of the equity available in their house to combine all of their financial debts into only one mortgage loan having a lone payment per month.

3. They would like to utilize the existing equity in their current home and property to work on an additional real estate investment.

   For instance, one of Island View's past clients located in Hawaii had a place valued at over one million bucks. When he could not find a buyer for the property, he signed a lease-option-to-buy contract with somebody. The rent amount was adequate to cover his regular mortgage payment, property taxes and cost of insurance. He also received a $200k non-refundable deposit for the 3-year agreement. With the help of these assurances to take care of the house's foreseeable bills, he ran across another promising real estate investment opportunity and approached Read Rock Capital for a private mortgage loan close to 70% of the property's appraised value. This means that he could make a deposit for his next investment, and also repay his present mortgage.

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

   If an unexpected mishap hinders a borrower from hitting his balloon payment deadline, he can find an alternative mortgage company to refinance. Refinancing ahead of the term date allows the borrower to meet the deadline for the balloon payment and avert any penalties in connection with failing to make the balloon payment.

Searching for a private mortgage lender in Dover to fund your real estate investment? Fill out the contact form or get in touch with us via phone and let's talk about your property.