Many real estate investors rely upon private real estate financing to purchase a new home, or remodel or refinance one they already have. Although standard lenders, for example, banks require a prolonged, time consuming application process and are likely to hesitate to offer money to a self-employed applicant, private mortgage loans in El Paso close fast and have minimal eligibility requirements.

Thus, in case you don't have good credit, having a promising real estate opportunity, a significant downpayment, past experience in real estate, and a good exit strategy are far more relevant when being qualified for private money for a real estate loan. In addition, El Paso private real estate mortgages close fast to supply you with financing without delay, allowing you to close within weeks.

Most borrowers use El Paso private mortgage lenders when:

1. They need funds to fix a property and offer it at a higher price or to rent it out for more money.

   By way of example, we had this client with a 2-family rental property. At the time, he had a significant amount of equity available in the property and the monthly rent generated steady cash flow. He sought to perform some renovation to the property to be able to keep his rents high, but a below average credit score of 520 meant a bank would undoubtedly turn down his mortgage request. When he approached Read Rock Capital to get financing, we were happy to do a cash-out refinance for 65% of the duplex's value.

2. They need to combine all their financial debts into one payment.

   Multiple unsecured debts with various lending rates are often too much to handle and difficult to manage. This is the reason many people make the decision to make the most of the equity available in their house to consolidate each of their outstanding debts into only one private mortgage with a lone payment per month.

3. They wish to take advantage of the existing equity within their current house to work on an additional project.

   One of our borrowers located in Hawaii had a property worth $1.2 million. His plans to sell the house did not happen and he ultimately had to be satisfied with leasing the home to an interested party, with an option to purchase it at a later date. The amount of rent was enough to pay for the cost of his ongoing mortgage bill, property taxes and insurance obligations. The renter also went ahead and paid him 200k as an advance payment for the 3 year lease contract. With these assurances taking care of the home's expenses on an ongoing basis, he phoned Read Rock Capital to get a 70% LTV private mortgage loan to help with his next real estate investment. This allowed him to make the deposit for his next investment, and at the same time helped with his current mortgage.

4. They have an existing private loan and can't pay the looming balloon payment.

   If an unexpected event hinders a person from making his balloon payment deadline, he can find an alternative mortgage company to refinance. Refinancing before the term date helps you to meet the due date for the balloon payment and stay clear of penalty charges associated with failing to make the balloon payment.

Are you looking for a private mortgage lender in El Paso to finance your investment purchase? Submit the contact form or give us a call and let's talk about the project you have in mind.