Private real estate financing entails getting a short-term mortgage via a private business or individual to be able to buy, carry out improvements on or refinance a home or property. Although typical lending institutions, for example, banks have a lengthy, time consuming application process and are more than likely to hesitate to lend money to a self-employed client, private mortgage loans in Georgetown close fast and are easy qualifying.

That is good news for real estate investors since a person with poor credit can opt for private money for a real estate loan given that he has a deal that shows strong potential, he has enough money for a downpayment, he has shown himself able in the real estate market, and he has a good exit strategy. And having fast closings of only 14 days, private real estate mortgages in Georgetown may very well be the perfect alternative for real estate investors.

Most borrowers talk with Georgetown private mortgage lenders when:

1. A remodeling job or update can help them sell the house at a higher price or bring in more rent.

   By way of example, there was this borrower who owned a 2-unit rental. He had already built up sufficient equity in the property and the rent was a recurring source of income. A number of select home upgrades would undoubtedly allow him to boost the cost of rent, but having a lower credit score of 520, it was very probable for a bank to turn down the mortgage request. Right after he got in contact with Read Rock Capital to get a mortgage, we were able to complete a cash-out refinance for 65% of the duplex's appraised value.

2. They wish to merge all their financial debts into one single loan.

   A lot of people find that it's stressful to manage countless payments each month. To successfully make the situation more reasonable, some people combine all of their debts into a single loan with one monthly payment.

3. They would like to take advantage of their home's equity for some other purchase.

   One of Island View's customers located in Hawaii had a residence valued at over $1,000,000. When he was not able to secure a buyer for the home, he entered into a lease-option-to-buy deal with somebody. The funds that stemmed from the lease contract covered his ongoing mortgage bill, insurance, and taxes. The person furthermore agreed to pay him $200,000 for a deposit for the three year lease contract. Having these sureties to take care of the home's financial obligations on an ongoing basis, he contacted Read Rock Capital to obtain a 70% LTV private mortgage loan to help with his upcoming investment. The financing helped him pay for a new investment property and in addition, pay off his initial mortgage.

4. They already have a preexisting private loan and are unable to afford the looming balloon payment.

   A real estate investor who has a previous private mortgage and is not able to pay for the balloon payment caused by a change of circumstances can fill out an application for refinancing from a different loan company. A refinance will help the borrower avoid missing the due date for the balloon payment and avoid penalties.

Looking to connect with a private mortgage lender in Georgetown to go over loan options for your upcoming real estate investment? Submit the contact form on this page or get in touch with us via phone to talk about the property or properties you have in mind.