Many real estate investors go with private real estate financing to buy a new property, or rehab or refinance an existing one. In contrast to bank loans, Elsmere private mortgage loans close fast, are easy to qualify for and obtainable by self-employed borrowers.

That's why, even if you don't have good credit, having a promising opportunity, a substantial downpayment, previous experience, and a clear exit strategy are much more relevant when it comes to qualifying for private money for a real estate loan. And with fast closings of fourteen days, private real estate mortgages in Elsmere may very well be the perfect solution for real estate investors.

Most real estate professionals speak with Elsmere private mortgage lenders when:

1. A remodeling job or renovation will help them sell the house at a higher price point or bring in additional rent.

   By way of example, we had this borrower who owned a two-family rental property. He had already built sufficient equity in the building and the rent payments was a regular revenue stream. He sought to complete some renovation to the property to be able to keep his rents high, but a low credit score of 520 meant a bank would turn down the loan application. For that reason, the client called Read Rock Capital (Read Rock Capital) to execute a cash-out refinance which in turn gave him financing for 65% of the property's market value.

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

   Multiple outstanding debts with different interest rates can be extremely overwhelming and difficult to keep track of. Because of this, some people opt to make the most of the equity in their residence to combine each of their unsecured debts into only one loan having a single payment per month.

3. They would like to allocate the existing equity in one property and use it to invest in another one.

   As one example, a borrower located in Hawaii had a house valued at $1,200,000. Since it was difficult for him to get a buyer for the house, he had someone who was willing to lease it with the option to buy. The amount of rent was enough to take care of his regular mortgage payment, property taxes and cost of insurance. In addition, he received a $200k non-refundable advance payment for the 3 year agreement. With this collateral to take care of the house's foreseeable financial obligations, he ran across a new investment opportunity and contacted Read Rock Capital to obtain a private mortgage loan around 70% of the property's appraised value. The money helped him finance a different investment as well as repay his primary mortgage.

4. They want help to satisfy the balloon payment for the existing loan.

   If an unforeseen event prevents a person from making his balloon payment due date, he could seek out an alternative loan provider to refinance. A cash-out refinance will help the borrower make the balloon payment and escape penalty.

Looking to make contact with a private mortgage lender in Elsmere to talk about financing options for your next investment? Submit the form on this page or give us a call and let's talk about your property or properties.