Private real estate financing can help investors purchase, renovate or refinance a home via a short-term mortgage loan from a privately owned company or an individual. In contrast to bank loans, Farmington Hills private mortgage loans are fast closing, easy qualifying and obtainable by self-employed borrowers.

That's why, while you might have bad credit, having a real estate opportunity showing good potential, a sizeable down payment, past experience, and an intelligible exit strategy are far more crucial when being qualified for private money for a real estate loan. And having fast closings of just fourteen days, private real estate mortgages in Farmington Hills may very well be the ideal alternative for real estate investors.

Primarily, people pay a visit to Farmington Hills private mortgage lenders to loan money for their real estate activities when:

1. They are in need of funds to renovate a home and property and put it up for sale at a higher price or to rent it out for more money.

   Real example: one of our clients held a two-unit rental. He had a great deal of equity in the building and the rent payments generated regular monthly income. Some select home upgrades would help him boost his rents, but having a low credit score of 520, it was extremely likely that a bank would turn down the mortgage application. For that reason, the client got in touch with Read Rock Capital (Read Rock Capital) to complete a cash-out refinance which got him financing for 65% of the property's value.

2. They want to combine their personal debts.

   Many of us find it stressful to manage countless payments each month. To help make the situation more manageable, some people merge all their outstanding debts into an individual loan with one monthly payment.

3. They want to employ the existing equity in one property and use it to purchase another one.

   To provide an example, a customer located in Hawaii owned a house appraised at $1,200,000. When he was unable to secure a buyer for his house, he signed a lease-option-to-buy deal with someone. The amount of rent was enough to take care of his monthly mortgage payment, taxes and cost of insurance. Additionally, he was given a $200k non-refundable down payment for the three year lease agreement. With these assurances to pay for the property's foreseeable financial obligations, he came across a new investment opportunity and got in touch with Read Rock Capital to obtain a private mortgage loan close to 70% of the home's valuation. This allowed him to pay an advance on the down payment for the new property, and at the same time pay down his existing mortgage.

4. The balloon payment for a prior loan is owed soon and they can't handle it.

   A real estate investor who currently has an existing private loan and is unable to pay for the balloon payment because of a change of circumstances can apply for refinancing from another lending company. Refinancing prior to the due date allows the borrower to meet the deadline for the balloon payment and avoid penalties in connection with failing to make the balloon payment.

Looking to make contact with a private mortgage lender in Farmington Hills speak about loan programs for your next project? Fill out the form or get in touch with us via phone to talk about your property or properties.