Private real estate financing entails obtaining a short-term mortgage loan via a private business or individual person to be able to buy, perform improvements on or refinance a home or property. In contrast to loans from banks, Gladstone private mortgage loans are fast closing, easy qualifying and offered to self-employed customers.

That's good for real estate investors since even someone with bad credit can opt for private money for a real estate loan given that he has a promising project, he has adequate money for a downpayment, he has shown himself capable in real estate, and he has a sensible exit strategy. And with fast closings of just fourteen days, private real estate mortgages in Gladstone are an ideal solution for serious real estate investors.

Most individuals use Gladstone private mortgage lenders when:

1. A rehab or update will make it possible to market the home at a higher price or ask for additional rent.

   As an example, a past borrower had a duplex. At the time, he had a significant amount of equity in the property and the rent payments brought in a steady revenue. He desired to complete some improvements to the units so that he could keep his rents high, but a low credit score of 520 meant a bank would undoubtedly turn down his loan application. Thus, he reached out to Read Rock Capital for a cash-out refinance and received a loan at 65% LTV.

2. They're saddled with numerous unsecured debts and prefer to combine them.

   A lot of people find it stressful to make countless payments each month. Due to this fact, some individuals get a loan from their home equity to consolidate all of their unsecured debts into one loan.

3. They want to employ the equity in one home and purchase another one.

   For instance, one of our past clients located in Hawaii had a house appraised above one million dollars. When he could not find a buyer for the house, he agreed to a lease-option-to-buy deal with an interested party. The rent checks were more than enough to pay for his monthly mortgage payment, property taxes and insurance payments. The renter also consented to pay him $200,000 in the form of a downpayment for the 3-year lease contract. These assurances meant that he did not have to worry about the home's ongoing financial obligations, and thus, when another promising real estate investment opportunity showed up, he came to Read Rock Capital and got a private mortgage loan at 70% LTV. This not only gave him enough capital to put towards a down payment on his next home, but also helped him deal with the current mortgage.

4. The balloon payment for a prior mortgage is due and they are not able to afford it.

   If an unforeseen incident hinders a borrower from hitting his balloon payment deadline, he could approach a new mortgage lender to refinance. A cash-out refinance will help the person complete the balloon payment and evade fines.

Looking to meet a private mortgage lender in Gladstone to discuss funding alternatives for your upcoming real estate investment? Enter your info into the contact form or get in touch with us via phone and let's discuss your project.