Private real estate financing means obtaining a short-term mortgage loan through a privately owned firm or individual to be able to buy, carry out upgrades on or refinance a home or property. As opposed to bank loans, Florissant private mortgage loans are fast closing, have minimal eligibility criteria and offered to self-employed customers.

That's a good thing for investors since somebody with bad credit can opt for private money for a real estate loan given that he has a project that shows promise, he has enough money for a downpayment, he has shown himself competent in past real estate projects, and he can show a good exit strategy. Combined with fast closings of just fourteen days, private real estate mortgages in Florissant may very well be the perfect alternative for serious real estate investors.

Normally, clients approach a private mortgage lender in Florissant when:

1. They want to remodel or fix up the property or home to allow them to offer it at an increased price point or to get higher rents.

   Real example: one of our clients held a two-family rental property. He'd already built up ample equity in the property and the rent payments was a recurring source of income. Though some improvements to the units would have helped him charge higher rent, a bank would undoubtedly have turned down the mortgage request, because his credit score was only 520. So he reached out to Read Rock Capital to get a cash-out refinance and got a loan at 65% LTV.

2. They need to combine debts.

   Multiple debts with different rates are often rather overwhelming and difficult to keep track of. As a result, lots of people borrow from a property's equity to consolidate all of their debts into a single loan.

3. They wish to capitalize on the equity within their current property to do a different real estate project.

   By way of example, one of Island View's past clients in Hawaii had a house valued above one million bucks. When he failed to procure a buyer for his house, he inked a lease-option-to-buy deal with an interested party. The lease income served to meet his current mortgage expenses, taxes and homeowner's insurance. In addition, he received a $200,000 non-refundable downpayment for the three year lease contract. Using these sureties to handle the property's bills on a regular basis, he approached Read Rock Capital to obtain a seventy percent LTV private mortgage loan to aid in his next investment. The borrowed funds helped him afford his next investment and in addition, repay his primary mortgage.

4. They want help to satisfy the balloon payment for a previous mortgage.

   A real estate investor who already has an existing private mortgage and is unable to afford the balloon payment thanks to a change in circumstances can apply for refinancing from a different loan company. Refinancing before the term date helps you to meet the deadline for the balloon payment and stay clear of penalties in connection with failing to pay the balloon payment.

Hoping to find a private mortgage lender in Florissant to help you afford your real estate investment? Enter your info into the form on this page or get in touch with us via phone and let's talk about your project.