Private real estate financing gives assistance to investors who want to purchase, fix up or refinance a property or home using a short-term loan from a privately owned company or an individual. Garden City private mortgage loans have many advantages — they are fast closing, have minimal eligibility requirements and are also available to self-employed individuals.

That's why, while you might don't have good credit, having a promising real estate opportunity, a sizeable down payment, prior experience in real estate, and an intelligible exit strategy are far more relevant in regards to qualifying for private money for a real estate loan. Besides, if you need a fast closing, you will not come across many options better than Garden City private real estate mortgages.

Usually, clients seek out a private mortgage lender in Garden City when:

1. A remodeling job or update can help them market the home at a much higher price or get additional rent.

   For instance, we had a borrower with a 2-family rental property. He'd already built ample equity in the building and the monthly rent checks was a recurring source of income. A few select home enhancements would help him bump up the cost of rent, but since he had a below average credit score of 520, it was extremely likely for a bank to turn down his loan request. Accordingly, he reached out to Read Rock Capital to get a cash-out refinance and got financing at 65% LTV.

2. They wish to combine debts.

   Countless unsecured debts with a variety of interest rates are quite overwhelming and difficult to keep tabs on. Because of this, many people make the decision to make the most of the equity in their house to combine each of their outstanding debts into only one private mortgage loan with a lone monthly payment.

3. They would like to utilize the existing equity in an existing house to work on a different project.

   Here is an example. A borrower in Hawaii owned a home appraised at $1.2M. His plans to sell the house didn't work out and he eventually had to be satisfied with leasing the house to an interested party, with the option to purchase it at a later date. The revenue that came from the lease paid for his continuing mortgage payment, insurance, and property taxes. The tenant also consented to pay $200,000 for a downpayment for the 3 year lease. Using these sureties to take care of the property's financial obligations on an ongoing basis, he approached Read Rock Capital for a seventy percent LTV private mortgage loan to help with his next real estate investment. This not only gave him adequate cash to put towards a down payment on his next investment, but also helped him repay the current mortgage.

4. They want assistance to meet the balloon payment for the current loan.

   If a borrower can't meet a balloon payment as a result of unexpected factors, he can attempt to refinance the loan with another mortgage lender. A refinance can help the borrower avoid missing the cut-off date for the balloon payment and prevent any penalties.

Looking to meet a private mortgage lender in Garden City to talk about funding alternatives for your upcoming real estate investment? Submit the form or call us to discuss the project you have in mind.