Private real estate financing entails getting a short-term mortgage from a privately owned firm or individual person in order to purchase, carry out improvements on or refinance a property. Fitchburg private mortgage loans have many advantages — they are fast closing, have minimal eligibility requirements and additionally, are available to self-employed borrowers.

That is good for investors since even an individual with weak credit can opt for private money for a real estate loan so long as he has a promising project, he has plenty of cash for a downpayment, he has shown himself competent in the real estate market, and he can show a preplanned exit strategy. Combined with fast closings of 2 weeks, private real estate mortgages in Fitchburg are the right choice for real estate investors.

In general, investors get in touch with a private mortgage lender in Fitchburg when:

1. They want money to renovate a property and sell it for a higher price point or to rent it out at a higher monthly amount.

   For example, we had a client who owned a two-unit rental. He held enough equity available in the property and the rent brought in routine income each month. He desired to perform some renovation to the place in order to keep his rents high, but a lower credit score of 520 meant a bank would doubtless turn down his mortgage application. Shortly after he approached Read Rock Capital to obtain a loan, we were able to complete a cash-out refinance for 65% of the house's value.

2. They're saddled with numerous debts and wish to combine them.

   The majority of people find it stressful to deal with countless payments each and every month. To successfully arrange a more workable situation, some people combine all of their financial debts into only one line of credit with just one monthly payment.

3. They prefer to unlock their existing equity in one property and use it to invest in a different one.

   As an example, one of Island View's previous borrowers in Hawaii had a place valued in excess of a million dollars. When he failed to secure a buyer for his house, he entered into a lease-option-to-buy contract with somebody. The rent amount was adequate to pay for his regular mortgage payment, property taxes and homeowner's insurance obligations. He also was given a $200k non-refundable advance payment for the 3 year agreement. Using these assurances to handle the home's financial obligations on a regular basis, he contacted Read Rock Capital for a seventy percent LTV private mortgage loan to help with his subsequent real estate investment. The money helped him finance a different investment and also pay down his primary mortgage.

4. They already have an existing loan and are not able to pay the looming balloon payment.

   A person who invests in real estate and has a previous private mortgage loan and is not able to afford the balloon payment thanks to a change in circumstances can apply for refinancing from a different lending company. A refinance can help the person avoid missing the due date for the balloon payment and steer clear of any penalty charges.

Looking to make contact with a private mortgage lender in Fitchburg to go over financing options for your next real estate investment? Fill out the contact form or call us to discuss the project you have in mind.