Private real estate financing means obtaining a short-term mortgage via a private business or individual person as a way to purchase, carry out upgrades on or refinance a property or home. As opposed to bank loans, Fort Wayne private mortgage loans close fast, are easy to qualify for and offered to self-employed borrowers.

Which means that even if you do not have a great credit score, there is still a strong likelihood of qualifying for private money for a real estate loan as long as your project is regarded as profitable, you have adequate capital available for the downpayment, you have proven yourself capable in real estate in the past, you have sizeable equity in the property or home or you have a well-defined plan to pay off the loan. Additionally, Fort Wayne private real estate mortgages close fast to provide you with financing right away, letting you close within weeks.

Most real estate professionals talk with Fort Wayne private mortgage lenders when:

1. A remodeling job or update will help to market their property at a higher price point or ask for more rent.

   E.g. one of our borrowers owned a duplex. He held a great deal of equity available in the house and the rent brought in routine income each month. He desired to complete some upgrades to the units so that he could maintain high rents, but a low credit score of 520 meant a bank would turn down the loan application. So he came to Read Rock Capital to obtain a cash-out refinance and acquired a loan at 65% LTV.

2. They would like to consolidate financial debts.

   Many people know how stressful it is to manage countless payments every month. Due to this fact, numerous people borrow from their home's equity to merge their financial debts into one loan.

3. They wish to take advantage of their home's existing equity for a different home purchase.

   Here is an example. A customer located in Hawaii owned a home valued at $1.2M. Since it was difficult for him to secure a buyer for his home, he had identified someone that was wanting to lease it with an option to purchase it. The money that came from the lease contract paid for his regular mortgage expenses, home owner's insurance, and property taxes. The person also agreed to pay him $200,000 as a deposit for a three year agreement. With this collateral to pay for the home's foreseeable expenses, he discovered a new real estate opportunity and got into contact with Read Rock Capital to obtain a private mortgage loan around seventy percent of the property's estimated value. The financing helped him afford a different investment as well as pay off his original mortgage.

4. The balloon payment for their current private loan is due and they are not able to afford it.

   A real estate investor who has a prior private mortgage loan and cannot pay for the balloon payment caused by a change of circumstances can apply for refinancing from another loan company. Refinancing prior to the term date helps you to make the deadline for the balloon payment and avert any penalty charges in connection with failing to pay the balloon payment.

Wanting to connect with a private mortgage lender in Fort Wayne to discuss loan programs for your upcoming investment? Submit the form on this page or give us a call and let's discuss the property you have in mind.