Private real estate financing entails obtaining a short-term mortgage through a privately owned company or individual person to be able to purchase, perform improvements on or refinance a property. Eagan private mortgage loans have many advantages — they are fast closing, easy qualifying and are also open to self-employed individuals.

Thus, while you might have bad credit, having a real estate opportunity showing good potential, a significant downpayment, prior experience in real estate, and a clear-cut exit strategy are far more crucial when it comes to being approved for private money for a real estate loan. And with fast closings of only 2 weeks, private real estate mortgages in Eagan may very well be the perfect alternative for ambitious real estate investors.

Mostly, people rely upon Eagan private mortgage lenders to finance their projects when:

1. They would like to remodel or fix up the property to be able to sell it at a higher price point or to ask for higher rents.

   Real example: one of our applicants held a 2-unit rental property. He held an abundance of equity available in the house and the rent brought in routine monthly income. While some upgrades to the property could have helped him command higher rent, a bank would most likely have turned down the loan request, given that his credit score was only 520. When he got in touch with Read Rock Capital to obtain financing, we were glad to do a cash-out refinance at 65% of the duplex's market value.

2. They're stuck with numerous debts and prefer to combine them.

   Multiple unsecured debts with varying interest rates are often too much to handle and difficult to manage. In order to set up a more reasonable situation, some people consolidate each of their unsecured debts into a single line of credit with only one payment per month.

3. They would like to capitalize on the equity in a current home to work on a different real estate project.

   One of our customers in Hawaii had a home valued at $1.2 million. His idea was to sell the house but it did not work out and he eventually had to be content with leasing the place to someone, with the option to purchase it at a later date. The rent checks were more than enough to cover the cost of his ongoing mortgage bill, property taxes and homeowner's insurance obligations. In addition, he was given a $200k non-refundable downpayment for the 3-year lease contract. These assurances meant he no longer had to worry about the property's ongoing financial obligations, and as a result, when another great real estate opportunity came up, he found Read Rock Capital and got a private mortgage loan at 70% LTV. This means that he was able to make the deposit for his next property, and also help with his existing mortgage.

4. They want assistance to meet the balloon payment for the existing mortgage.

   A real estate investor who has a previous private mortgage loan and cannot afford the balloon payment caused by a change of circumstances can submit an application for refinancing from another company. A cash-out refinance can help you complete the balloon payment and escape consequences.

Hoping to make contact with a private mortgage lender in Eagan to discuss financing options for your next investment? Fill out the contact form or get in touch with us via phone and let's talk about the project you have in mind.