Private real estate financing helps investors buy, renovate or refinance a property utilizing a short-term mortgage from a privately owned firm or an individual. Federal Way private mortgage loans have many advantages — they are fast closing, easy qualifying and additionally, are available to self-employed individuals.

It means that irrespective of the level of your credit score, you've still got a good chance of getting private money for a real estate loan provided that your real estate project is presumed to be profitable, you have adequate money to set aside for the downpayment, you have proven yourself competent in past real estate investments, you have substantial equity in the home or property or you have a clear-cut plan to pay back the balance of the loan. Furthermore, if you would like a fast closing, you will not see many options better than Federal Way private real estate mortgages.

Primarily, customers confer with Federal Way private mortgage lenders to fund their projects when:

1. A rehab or update can allow them to market their property for a much higher price point or charge more rent.

   Real example: one of our clients held a two-family rental. He'd already built a good amount of equity available in the property and the rent payments was a regular source of income. Though several improvements to the place might have helped him command more rent, a bank would likely have turned down the loan application, due to the fact he had a credit score of down at 520. And so he reached out to Read Rock Capital to obtain a cash-out refinance and got a loan at 65% LTV.

2. They wish to combine unpaid debts.

   Many of us think it is stressful to manage multiple payments each and every month. Due to this fact, lots of people borrow from their home equity to combine each of their unsecured debts into one single loan payment.

3. They prefer to release the existing equity in one property and acquire a different one.

   One of Island View's clients located in Hawaii had a residence valued at over $1,000,000. Because it was difficult for him to secure an interested party for the house, he had found someone that was ready to lease it with the option to purchase it. The rent amount was adequate to pay for the cost of his monthly mortgage bill, property taxes and cost of homeowner's insurance. The renter also consented to pay him $200,000 in the form of an advance payment for a three year agreement. These assurances meant he did not have to be concerned with the property's future expenses, and as a result, when another promising real estate opportunity surfaced, 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 down payment for the new investment, and also repay his existing mortgage.

4. The balloon payment for their current private loan is due and they are unable to pay it.

   If an unforeseen event hinders someone from making his balloon payment deadline, he could find an alternative lender to refinance. A cash-out refinance can help the borrower complete the balloon payment and escape fines.

Wanting to meet a private mortgage lender in Federal Way to discuss loan options for your next real estate investment? Fill out the contact form on this page or call us and let's discuss the project you have in mind.