Many real estate investors depend on private real estate financing to purchase a new home or property, or update or refinance one they already have. Although conventional lenders, for example, banks have a lengthy, time consuming application process and are likely to hesitate to lend money to a self-employed client, private mortgage loans in Everett close fast and have minimal eligibility requirements.

That's a good thing for investors since anyone with bad credit can opt for private money for a real estate loan given that he has a promising project, he has enough cash for a down payment, he has proven himself capable in the real estate market, and has a plan for an exit strategy. And with fast closings of 2 weeks, private real estate mortgages in Everett may very well be the right choice for ambitious real estate investors.

Mostly, customers rely upon Everett private mortgage lenders to finance their projects when:

1. They want to find money to fix up a home and offer it at a higher price point or to rent it out for more money.

   For instance, there was a client with a two-unit rental. He held enough equity available in the building and the rent payments generated routine income each month. He desired to perform some upgrades to the property to be able to keep his rents high, but a poor credit score of 520 meant that a bank would doubtless turn down his mortgage application. Right after he approached Read Rock Capital for a loan, we were happy to do a cash-out refinance at 65% of the home's appraised value.

2. They wish to consolidate their personal debts.

   Many people find that it's stressful to make countless payments on a monthly basis. To make the situation more manageable, some people merge each of their outstanding debts into one single line of credit with one monthly payment.

3. They would like to make use of the equity in their existing house to work on a different project.

   One of Island View's clients in Hawaii had a property valued at over $1,000,000. His idea was to sell the house but it never transpired and he finally had to settle for leasing the house, with an option to purchase it at a later time. The cash that came from the lease took care of his monthly mortgage expenses, home owner's insurance, and taxes. The renter furthermore went ahead and paid him $200,000 in the form of a downpayment for a 3 year contract. The signed agreement meant that he did not have to worry about the home's future expenses, and so when another great real estate opportunity surfaced, he came to Read Rock Capital and received a private mortgage loan at seventy percent LTV. This not only gave him plenty of cash to use for a down payment on his next home, but also made it easier for him to deal with the current mortgage.

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

   A real estate investor who has a previous private mortgage and isn't able to pay for the balloon payment because of a change of circumstances can apply for refinancing from another company. A cash-out refinance will help the borrower make the balloon payment and evade penalty.

Wanting to meet a private mortgage lender in Everett speak about funding programs for your next investment? Complete the form on this page or give us a call to discuss your project.