Private real estate financing entails obtaining a short-term loan through a privately owned company or individual person with the intention to purchase, perform improvements on or refinance a property or home. Downers Grove private mortgage loans have many advantages — they are fast closing, have minimal eligibility criteria and are also offered to self-employed applicants.

That's very good news for real estate investors because even anyone with poor credit can apply for private money for a real estate loan provided that he has a promising deal, he has enough cash for a down payment, he has shown himself able in prior real estate projects, and he can show a plan for an exit strategy. In addition, Downers Grove private real estate mortgages close fast to supply you with funding right away, letting you close within 2 or 3 weeks.

Most individuals work with Downers Grove private mortgage lenders when:

1. They want to find capital to fix up a home and property and offer it for a higher price or to up the lease amount for tenants.

   For example, we had this customer who owned a 2-family rental property. He had an abundance of equity available in the house and the rent generated regular monthly income. He desired to complete some upgrades to the property to help maintain high rents, but a low credit score of 520 meant a bank would doubtless turn down his mortgage request. Accordingly, he came to Read Rock Capital to obtain a cash-out refinance and acquired a loan at 65% LTV.

2. They have multiple personal debts and wish to combine them.

   Numerous unsecured debts with a variety of rates can be too much to handle and hard to keep track of. To help set up a more reasonable situation, people combine all their financial debts into a single mortgage loan with only one payment per month.

3. They prefer to allocate the equity in one home or property and invest in another one.

   To provide an example, a customer in Hawaii had a home valued at $1.2M. His plans to sell the house didn't happen and he ultimately was forced to settle for leasing the home to an interested party, with the option to buy at a later time. The cash that came from the lease contract paid for his continuing mortgage payment, insurance, and taxes. Additionally, he received a two hundred thousand dollars non-refundable downpayment for the 3-year lease agreement. Having these sureties to take care of the home's expenses on a regular basis, he approached Read Rock Capital to get a 70% loan-to-value private mortgage loan for his next real estate investment. This means that he was able to make a down payment for his next investment, and also pay down his current mortgage.

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

   If someone cannot meet a balloon payment thanks to unanticipated causes, he can attempt to refinance the loan with a different lending company. A cash-out refinance will help the person pay the balloon payment and evade penalty.

Hoping to connect with a private mortgage lender in Downers Grove to talk about financing programs for your next real estate investment? Complete the form on this page or call us and let's talk about the project you have in mind.