Private real estate financing gives assistance to investors who want to buy, renovate or refinance a home or property using a short-term loan from a private firm or an individual. Although traditional lenders, for example, banks will require an extended, drawn out application process and are more than likely to be reluctant to lend money to a self-employed borrower, private mortgage loans in Enterprise close fast and have minimal eligibility criteria.

This means that even if your credit score recently went through the wringer, you still have a high probability of receiving private money for a real estate loan so long as your undertaking is presumed to be profitable, you have sufficient capital to put towards the down payment, you have demonstrated yourself competent in past real estate projects, you have significant equity contained in the property or home or you have a well-defined plan to pay back the loan. In addition, Enterprise private real estate mortgages close fast to provide you with funding right away, helping you close within two to three weeks.

Most borrowers work with Enterprise private mortgage lenders when:

1. They're looking for capital to repair a home and property and sell it at a much higher price point or to rent it out at a higher monthly amount.

   As an example, one of our borrowers had a duplex. He had already built up sufficient equity available in the building and the rent was a regular source of income. A number of choice home upgrades would undoubtedly allow him to bump up his rental prices, but having a low credit score of 520, it was highly certain for a bank to turn down the loan request. So he came to Read Rock Capital to do a cash-out refinance and obtained financing at 65% LTV.

2. They're saddled with multiple personal debts and prefer to consolidate them.

   Multiple unsecured debts with a range of interest rates are often very overwhelming and tough to keep track of. This is why a lot of people decide to make use of the equity in their property to consolidate all of their debts into just one private loan which has a lone monthly payment.

3. They would like to utilize the equity available in their existing house to do another real estate project.

   As an example, one of Island View's past clients located in Hawaii had a property appraised at more than one million dollars. When he failed to secure a buyer for the property, he signed a lease-option-to-buy contract with someone. The money that came from the rental payments covered his regular mortgage bill, insurance, and property taxes. In addition, he received a $200k non-refundable downpayment for the three year contract. These assurances meant he no longer had to worry about the property's future expenses, so when a new investment opportunity came up, he came to Read Rock Capital and got a private mortgage loan at 70% loan to value. This allowed him to pay an advance on the deposit for the new property, and furthermore repay his current mortgage.

4. They already have a mortgage and are not able to pay the looming balloon payment.

   A person who invests in real estate and has a previous private mortgage and isn't able to afford the balloon payment on account of a change in circumstances can submit an application for refinancing from a new loan company. Refinancing right before the due date enables you to make the due date for the balloon payment and avert any penalties in connection with missing the balloon payment.

Planning to discuss your mortgage plans with a private mortgage lender in Enterprise? Complete the contact form or call us and let's discuss the property you have in mind.