Private real estate financing involves getting a short-term loan from a privately owned company or individual person in order to purchase, carry out improvements on or refinance a home. Unlike bank loans, Gothenburg private mortgage loans are fast closing, have minimal eligibility criteria and accessible to self-employed individuals.

That's very good news for investors because even an individual with poor credit can opt for private money for a real estate loan so long as he has a promising deal, he has enough cash for a down payment, he has shown himself able in earlier real estate projects, and can show a plan for an exit strategy. Combined with fast closings of only 2 weeks, private real estate mortgages in Gothenburg are an ideal solution for serious real estate investors.

In most cases, customers pay a visit to Gothenburg private mortgage lenders to lend money for their endeavors when:

1. A rehab or update will make it possible to sell their property at a higher price point or fetch extra rent.

   For example, we had a borrower with a 2-unit rental property. At the time, he had plenty of equity available in the building and the monthly rent brought in a steady income. Although some improvements to the property could have helped him ask for higher rent, a bank would undoubtedly have turned down the loan request, since his credit score was only 520. Thus, he turned to Read Rock Capital to get a cash-out refinance and acquired a loan at 65% LTV.

2. They're stuck with numerous outstanding debts and prefer to consolidate them.

   The majority of people find it stressful to deal with numerous payments on a monthly basis. As a result, many individuals borrow from their home equity to merge all of their outstanding debts into just one loan.

3. They wish to release the equity in one house and use it to purchase another one.

   One of Island View's customers in Hawaii owned a house valued at $1.2 million. His idea was to sell the house but it never materialized and he ultimately had to be content with leasing the house to someone, with an option to purchase it down the road. The money that stemmed from the rental payments covered his continuing mortgage bill, home owner's insurance, and property taxes. The tenant also went ahead and paid him $200,000 for a down payment for a three year lease agreement. Having these assurances to handle the property's expenses on a recurring basis, he called Read Rock Capital to get a 70% LTV private mortgage loan for his subsequent real estate investment. This allowed him to make the deposit for his next property, and at the same time repay his present mortgage.

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

   If an unforeseen incident stops a person from making his balloon payment deadline, he can find an alternative lender to refinance. Refinancing ahead of the due date enables the borrower to meet the due date for the balloon payment and avoid fees and penalties in connection with failing to make the balloon payment.

Looking to discuss your mortgage options with a private mortgage lender in Gothenburg? Submit the contact form or get in touch with us via phone to discuss your property or properties.