Private real estate financing helps investors buy, remodel or refinance a home using a short-term mortgage from a private company or an individual. Whereas traditional lenders, for example, banks have a lengthy, time consuming application process and in all likelihood will think twice about giving money to a self-employed customer, private mortgage loans in Dunwoody close fast and are easy qualifying.

That is fantastic news for real estate investors since even someone with bad credit can apply for private money for a real estate loan as long as he has a deal that shows promise, he has enough money for a downpayment, he has demonstrated himself capable in real estate, and he can show a sensible exit strategy. In addition, the fast closing Dunwoody private real estate mortgages give you financing without delay, allowing you to close on a deal within 2 or 3 weeks.

Most borrowers speak with Dunwoody private mortgage lenders when:

1. They want to find funds to remodel a house and sell it for a much higher price or to rent it out at a higher monthly amount.

   E.g. a past investor owned a twin-home / duplex. He had a great deal of equity in the property and the rent checks generated regular income each month. A few select home upgrades would allow him to increase his rental prices, but with a lower credit score of 520, it was very probable that a bank would turn down the mortgage request. Consequently, the borrower called Read Rock Capital (Read Rock Capital) to do a cash-out refinance which got him financing for 65% of the property's appraised value.

2. They need to combine their unpaid debts.

   Numerous debts with various interest rates are too much to handle and tough to manage. Because of this, many people decide to take advantage of the equity in their home to merge each of their debts into a single private mortgage loan having a single monthly payment.

3. They want to release the existing equity in one property or home and invest in a different one.

   Here is an example. A customer in Hawaii owned his residence which was appraised at $1.2M. His idea was to sell the house but it didn't happen and he eventually was forced to settle for leasing the house to an interested party, with the option to buy at a later date. The revenue that stemmed from the rent covered his monthly mortgage bill, home owner's insurance, and property taxes. The tenant also included $200k for a non-refundable deposit when he signed the 3 year lease. With this collateral to pay for the house's foreseeable financial obligations, he discovered another promising real estate opportunity and approached Read Rock Capital to obtain a private mortgage loan close to 70% of the home's value. This allowed him to pay an advance on the deposit for the new property, and also pay down his present mortgage.

4. The balloon payment for a preexisting mortgage is owed soon and they are unable to pay it.

   A person who invests in real estate and currently has an existing private mortgage loan and is not able to pay for the balloon payment as a result of a change in circumstances can fill out an application for refinancing from another lender. A cash-out refinance can help you make the balloon payment and evade penalty.

Want to discuss your investment alternatives with a private mortgage lender in Dunwoody? Enter your info into the contact form or give us a call to discuss the project you have in mind.