A lot of real estate investors depend on private real estate financing to purchase a new home, or update or refinance an existing one. While traditional lenders, for example, banks necessitate a prolonged, time consuming application process and in all likelihood will hesitate to offer money to a self-employed individual, private mortgage loans in Fairmont close fast and have minimal eligibility criteria.

This is very fortunate for real estate investors considering that even a person with lousy credit can qualify for private money for a real estate loan so long as he has a project that shows strong potential, he has plenty of money for a downpayment, he has demonstrated himself competent in earlier real estate projects, and he has a good exit strategy. And having fast closings of only 14 days, private real estate mortgages in Fairmont may very well be the ideal solution for real estate investors.

Most individuals talk with Fairmont private mortgage lenders when:

1. They want to find money to renovate a house and put it up for sale for a much higher price point or to rent it out for more money.

   By way of example, we had a borrower who owned a 2-family rental. He previously built up adequate equity in the building and the rent was a regular income source. Though some enhancements to the place could have helped him collect more rent, a bank would likely have turned down the loan request, due to the fact his credit score was down at 520. Shortly after he got in contact with Read Rock Capital to get a mortgage, we were able to complete a cash-out refinance at 65% of the home's value.

2. They've got numerous personal debts and desire to consolidate them.

   Countless unsecured debts with a variety of rates can be too much to handle and tough to keep tabs on. On that basis, some individuals do a loan from their home equity to combine all of their debts into one single manageable payment.

3. They prefer to take advantage of their house's equity for a different real estate deal.

   One of Island View's borrowers located in Hawaii owned a property valued at $1.2 million. While it was difficult for him to secure a purchaser for the property, he had identified someone who was wanting to lease it having the option to buy. The cash that stemmed from the lease contract paid for his monthly mortgage expenses, insurance, and taxes. The renter also included $200,000 in the form of a non-refundable advance payment as he signed the 3 year agreement. Having these sureties to cover the property's monthly payments on a regular basis, he phoned Read Rock Capital for a seventy percent LTV private mortgage loan for his upcoming investment. Meaning that he could make a deposit for his next investment, and also pay down his current mortgage.

4. The balloon payment for a previous mortgage is due and they can't pay it.

   If someone is not able to make a balloon payment resulting from unexpected factors, he can try and refinance his loan with an alternative mortgage lender. Refinancing prior to the term date allows you to make the due date for the balloon payment and avert any fees and penalties related to missing the balloon payment.

Wanting to connect with a private mortgage lender in Fairmont to discuss funding alternatives for your upcoming real estate investment? Submit the form on this page or give us a call to talk about the project you have in mind.