Private real estate financing entails obtaining a short-term mortgage loan from a privately owned company or individual to be able to purchase, perform improvements on or refinance a home or property. While standard lending institutions like banks have an extended, drawn out application process and are likely to hesitate to lend money to a self-employed customer, private mortgage loans in Georgetown close fast and have minimal eligibility criteria.

Meaning that even if your credit score recently went through the wringer, you've still got a good chance of qualifying for private money for a real estate loan provided that your real estate project is presumed to be profitable, you have enough money available for the down payment, you have demonstrated yourself able in the real estate market previously, you have sizeable equity in the property or you have an intelligible plan to pay back the loan. Furthermore, if you are searching for a fast closing, you won't see any options better than Georgetown private real estate mortgages.

Most real estate professionals talk with Georgetown private mortgage lenders when:

1. A rehab or restoration can help them market the home at a much higher price or charge significantly more rent.

   As an example, one of our borrowers owned a duplex. He already had plenty of equity in the property and the monthly rent delivered steady cash flow. He desired to do some improvements to the units in order to maintain high rents, but a below average credit score of 520 meant that a bank would turn down the mortgage request. Thus, he reached out to Read Rock Capital to do a cash-out refinance and got a loan at 65% LTV.

2. They need to combine their debts.

   A lot of people find it stressful to deal with countless payments every month. For this reason, some people make the decision to make the most of the equity in their house to consolidate their outstanding debts into one mortgage with a lone payment per month.

3. They wish to release the existing equity in one home and invest in another one.

   For example, a borrower in Hawaii had a home valued at $1.2M. His idea was to sell the house but it never materialized and he eventually was forced to be satisfied with leasing the home to an interested party, with the option to buy at a later date. The rent checks were enough to pay for the cost of his monthly mortgage bill, property taxes and insurance payments. The renter furthermore agreed to pay him two hundred thousand dollars as a down payment for the 3-year contract. The signed agreement meant that he no longer needed to be concerned with the property's future expenses, and as a result, when a new investment opportunity came up, he came to Read Rock Capital and received a private mortgage loan at seventy percent LTV. The borrowed funds helped him finance a different investment as well as pay down his original mortgage.

4. The balloon payment for their current private mortgage is owed soon and they are not able to pay it.

   If an unforeseen incident prevents someone from hitting his balloon payment deadline, he can find an alternative loan provider to refinance. A refinance will help the person hit the due date for the balloon payment and steer clear of any penalties.

Wanting to connect with a private mortgage lender in Georgetown to go over loan options for your next project? Complete the contact form on this page or give us a call and let's discuss your project.