Private Real Estate Mortgages in Duluth

Private real estate financing gives assistance to real estate investors who want to purchase, fix up or refinance a property via a short-term mortgage from a private business or an individual. While typical lending institutions such as banks have a prolonged, time consuming application process and are likely to be reluctant to lend money to a self-employed client, private mortgage loans in Duluth close fast and have minimal eligibility criteria.

That's great news for investors since someone with weak credit can opt for private money for a real estate loan given that he has a promising project, he has plenty of money for a downpayment, he has proven himself able in earlier real estate ventures, and can show a plan for an exit strategy. What's more, Duluth private real estate mortgages close fast to supply you with financing right away, letting you close on a deal within 2 or 3 weeks.

Most individuals work with Duluth private mortgage lenders when:

  1. They need money to fix a home and offer it for a higher price point or to up the lease amount for tenants.

    By way of example, there was this client who owned a 2-family rental property. He held an abundance of equity available in the asset and the rent checks brought in routine income each month. Some select home renovations would help him increase his rental prices, but having a below average credit score of 520, it was highly certain that a bank would turn down his loan request. Thus, he turned to Read Rock Capital for a cash-out refinance and got a loan at 65% LTV.

  2. They've got multiple unsecured debts and desire to consolidate them.

    Countless debts with varying interest rates can be extremely overwhelming and hard to keep tabs on. As a result, many individuals do a loan from a property's equity to consolidate all of their outstanding debts into one single loan.

  3. They wish to utilize their house's existing equity for some other home purchase.

    As one example, a customer located in Hawaii owned a home valued at $1.2M. Though it was hard for him to get an interested party for the home, he had somebody who was open to lease it having the option to buy. The rental agreement income helped him meet his existing mortgage expenses, taxes and insurance. The tenant additionally put $200,000 for a non-refundable downpayment as part of signing the 3 year lease agreement. These assurances meant that he no longer had to worry about the property's future expenses, so when another promising investment opportunity surfaced, he came to Read Rock Capital and obtained a private mortgage loan at seventy percent loan to value. Meaning that he could make the down payment for his next investment, and also help with his existing mortgage.

  4. They already have a preexisting mortgage and can't afford the looming balloon payment.

    If an unexpected mishap stops someone from making his balloon payment due date, he can find another loan provider to refinance. Refinancing right before the term date helps the borrower to make the due date for the balloon payment and stay clear of fees and penalties related to failing to pay the balloon payment.

Wanting to meet a private mortgage lender in Duluth to talk about loan programs for your next project? Submit the contact form or get in touch with us via phone to discuss the project you have in mind.

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Investment property loans only please, no primary residences at this time.