Private real estate financing helps investors pay for, fix up or refinance a home or property via a short-term mortgage loan from a privately owned business or an individual. As opposed to loans from banks, Franklin private mortgage loans are fast closing, have minimal eligibility criteria and offered to self-employed borrowers.

This is a good thing for real estate investors considering that a person with bad credit can obtain a private money for a real estate loan given that he has a deal that shows strong potential, he has plenty of money for a downpayment, he has proven himself capable in the real estate market, and has a preplanned exit strategy. And with fast closings of only 14 days, private real estate mortgages in Franklin are an ideal alternative for real estate investors.

Normally, people reach out to a private mortgage lender in Franklin when:

1. They want to update or fix up the house so that they can offer it at a higher price point or to charge higher rents.

   For example, we had a client with a 2-unit rental. He had plenty of equity in the asset and the rent checks generated routine monthly income. While some improvements to the place might have enabled him to charge higher rent, a bank would definitely have turned down the mortgage request, considering that his credit score was a mere 520. Hence, the borrower contacted Read Rock Capital (Read Rock Capital) to do a cash-out refinance which gave him a loan for 65% of the duplex's appraised value.

2. They would like to combine their outstanding debts into a single payment.

   A lot of people find that it's stressful to make multiple payments every month. To make the situation more reasonable, people consolidate each of their outstanding debts into a single line of credit with one monthly payment.

3. They prefer to allocate the equity in one house and use it to invest in another one.

   By way of example, one of Island View's past clients in Hawaii had a property appraised at over one million dollars. He wanted to sell the house but that didn't happen and he finally was forced to be satisfied with leasing the property to someone, with an option to purchase it at a future date. The amount of rent was more than enough to cover his regular mortgage payment, taxes and insurance obligations. The tenant also put $200k for a non-refundable down payment as he signed the three year lease contract. Having these assurances to handle the home's financial obligations on a regular basis, he approached Read Rock Capital to get a seventy percent loan-to-value private mortgage loan for his upcoming purchase of an investment property. This let him make the deposit for his next property, and furthermore pay down his current mortgage.

4. They want help to meet the balloon payment for the existing loan.

   A real estate investor who currently has an existing private mortgage loan and cannot afford the balloon payment caused by a change in circumstances can submit an application for refinancing from a new lender. Refinancing before the due date allows you to make the due date for the balloon payment and avert any fines associated with failing to pay the balloon payment.

Looking to meet a private mortgage lender in Franklin to discuss financing options for your next project? Fill out the contact form or give us a call to discuss the property you have in mind.