Private real estate financing means obtaining a short-term mortgage loan from a privately owned business or individual to be able to purchase, perform improvements on or refinance a home. Whereas traditional lenders such as banks will require a lengthy, time consuming application process and are likely to be reluctant to give money to a self-employed borrower, private mortgage loans in East Helena close fast and are easy to qualify for.

This is fantastic news for real estate investors since even anyone with lousy credit can obtain a private money for a real estate loan so long as he has a promising deal, he has plenty of cash for a downpayment, he has proven himself able in past real estate projects, and has a preplanned exit strategy. And with fast closings of only 14 days, private real estate mortgages in East Helena are an ideal solution for real estate investors.

Most real estate investors use East Helena private mortgage lenders when:

1. They need to renovate or make repairs to the home so they can market it at a higher price or to fetch higher rents.

   For instance, we had a borrower who owned a two-unit rental property. He held plenty of equity available in the asset and the rent payments generated regular income each month. A handful of choice home upgrades would undoubtedly allow him to bump up his rents, but since he had a poor credit score of 520, it was highly certain for a bank to turn down his loan application. Thus, he reached out to Read Rock Capital to get a cash-out refinance and received a loan at 65% LTV.

2. They're stuck with numerous unsecured debts and would like to consolidate them.

   Many of us think it is stressful to take care of multiple payments each and every month. Due to this, lots of people get a loan against a property's equity to combine each of their financial debts into a single mortgage loan.

3. They would like to use the equity within an existing house to do another real estate investment.

   One of Island View's borrowers in Hawaii owned a residence worth $1M. When he could not procure a buyer for his property, he signed a lease-option-to-buy deal with someone. The rental agreement payments helped him meet his existing mortgage payment, property taxes and insurance. The tenant furthermore agreed to pay two hundred thousand dollars for an advance payment for a 3 year lease. The signed agreement meant he no longer had to concern himself with the property's ongoing expenses, and thus, when another promising real estate opportunity came up, he found Read Rock Capital and got a private mortgage loan at 70% loan to value. This let him pay an advance on the deposit for his next investment, and furthermore helped with his existing mortgage.

4. They need help to satisfy the balloon payment for the current mortgage.

   If an unexpected incident stops a borrower from meeting his balloon payment deadline, he can find a new loan company to refinance. A cash-out refinance will help the person make the balloon payment and escape consequences.

Want to discuss loan programs with a private mortgage lender in East Helena? Enter your info into the form on this page or give us a call and let's talk about your project.