Private real estate financing entails obtaining a short-term loan from a private business or individual person in order to buy, carry out improvements on or refinance a home or property. Although traditional lending institutions such as banks require a lengthy, time consuming application process and in all likelihood will think twice about giving money to a self-employed customer, private mortgage loans in Essex Junction close fast and are easy qualifying.

This is fantastic news for real estate investors since even somebody with bad credit can apply for private money for a real estate loan as long as he has a project that shows promise, he has plenty of money for a down payment, he has shown himself competent in past real estate ventures, and can show a preplanned exit strategy. In addition, the fast closing Essex Junction private real estate mortgages provide you with financing without delay, letting you close within weeks.

Most real estate investors turn to Essex Junction private mortgage lenders when:

1. They need to update or make repairs to the house to be able to offer it for sale at a higher price point or to ask for higher monthly rental fees.

   For example, we had a client who owned a two-family rental. He already had a lot of equity in the building and the rent checks delivered steady revenue. A number of select home upgrades would undoubtedly allow him to increase the cost of rent, but because of a below average credit score of 520, it was extremely likely for a bank to turn down the loan application. So he turned to Read Rock Capital to get a cash-out refinance and acquired financing at 65% LTV.

2. They need to merge all their unsecured debts into one payment.

   A lot of people know how stressful it is to deal with numerous payments each month. This is why a lot of people choose to take advantage of the equity available in their property to consolidate all of their financial debts into only one private mortgage with a lone monthly payment.

3. They want to unlock the equity in one property and buy another one.

   As one example, a client in Hawaii owned a home appraised at $1.2M. Because it was challenging for him to secure a buyer for the place, he had identified a person that was ready to lease it with the option to buy. The rent checks were sufficient to take care of the cost of his ongoing mortgage bill, taxes and cost of homeowner's insurance. He also was given a $200,000 non-refundable advance payment for the 3 year agreement. With these sureties handling the home's bills on a regular basis, he phoned Read Rock Capital for a seventy percent loan-to-value private mortgage loan to help with his upcoming real estate investment. This let him pay an advance on the downpayment for the new property, and at the same time pay down his present mortgage.

4. They have an existing loan and are unable to afford the pending balloon payment.

   A person who invests in real estate and has a previous private loan and is not able to afford the balloon payment on account of a change in circumstances can fill out an application for refinancing from an alternative lending company. Refinancing right before the due date helps the borrower to meet the deadline for the balloon payment and avoid consequences related to missing the balloon payment.

Interested in discussing your financing plans with a private mortgage lender in Essex Junction? Enter your info into the contact form on this page or get in touch with us via phone to discuss the property you have in mind.