Private real estate financing helps investors purchase, fix up or refinance a property via a short-term loan from a private firm or an individual. While standard lenders such as banks will require a prolonged, time consuming application process and in all likelihood will think twice about loaning money to a self-employed client, private mortgage loans in Eden Prairie close fast and are easy qualifying.

Thus, in case you don't have very good credit, having a real estate opportunity with good potential, a considerable downpayment, previous real estate experience, and a clear exit strategy are much more relevant when it comes to being approved for private money for a real estate loan. Combined with fast closings of 14 days, private real estate mortgages in Eden Prairie may very well be the ideal alternative for serious real estate investors.

Most individuals turn to Eden Prairie private mortgage lenders when:

1. They would like to renovate or make repairs to the property to enable them to offer it for sale at a much higher price or to get higher monthly rental fees.

   One example is a customer who owned a two-family rental property. He held a great deal of equity in the property and the rent generated regular income each month. Although some upgrades to the units would have helped him charge more rent, a bank would likely have turned down the mortgage request, since he had a credit score of only 520. For that reason, the borrower got into contact with Read Rock Capital (Read Rock Capital) to execute a cash-out refinance which in turn got him financing for 65% of the property's market value.

2. They wish to combine their personal debts.

   Most people find it stressful to manage multiple payments each and every month. To make the situation more manageable, people merge each of their financial debts into only one loan with only one monthly payment.

3. They prefer to employ the existing equity in one property or home and use it to invest in another one.

   One of our borrowers in Hawaii owned a house valued at $1.2 million. He wanted to sell the house but that never transpired and he finally was forced to be content with leasing the place to an interested party, with an option to purchase it at a later time. The revenue that stemmed from the rental payments covered his continuing mortgage expenses, home owner's insurance, and taxes. The tenant additionally put $200,000 towards a non-refundable advance payment as part of signing the three year agreement. The signed agreement meant that he no longer needed to worry about the home's future expenses, and so when a new real estate opportunity came up, he reached out to Read Rock Capital and received a private mortgage loan at 70% loan to value. The money helped him put enough money towards his next investment as well as pay off his primary mortgage.

4. They need assistance to meet the balloon payment for the current mortgage loan.

   If an unforeseen incident stops a borrower from making his balloon payment deadline, he can approach an alternative mortgage lender to refinance. A cash-out refinance can help the borrower pay the balloon payment and escape consequences.

Want to discuss mortgage programs with a private mortgage lender in Eden Prairie? Complete the contact form or call us to talk about the property or properties you have in mind.