A lot of real estate investors count on private real estate financing to acquire a new property or home, or renovate or refinance one they already own. Although standard lenders such as banks have an extended, drawn out application process and in all likelihood will be reluctant to loan money to a self-employed customer, private mortgage loans in Grand Rapids close fast and are easy qualifying.

It means that irrespective of the caliber of your credit score, you've still got a good chance of qualifying for private money for a real estate loan provided that your real estate project is deemed to be profitable, you have adequate capital reserved for the down payment, you have shown yourself able in real estate in the past, you have sizeable equity in the home or you can show a clear plan to pay back the balance of the loan. Furthermore, if you are searching for a fast closing, you will not see many options better than Grand Rapids private real estate mortgages.

Most real estate investors use Grand Rapids private mortgage lenders when:

1. A rehab or update will help to market the house at a higher price point or charge significantly more rent.

   As an example, one of our clients owned a duplex. He had already built up sufficient equity in the asset and the rent payments was a recurring source of income. He sought to perform some renovation to the units to be able to keep his rents high, but a poor credit score of 520 meant that a bank would undoubtedly turn down the loan application. For that reason, the client got in contact with Read Rock Capital (Read Rock Capital) to do a cash-out refinance which in turn got him financing for 65% of the home's assessed value.

2. They're saddled with numerous unsecured debts and need to consolidate them.

   Most people think it is stressful to make countless payments every month. To help arrange a more reasonable situation, people consolidate their unsecured debts into an individual line of credit with just one payment per month.

3. They want to use the equity in an existing house to do a different real estate project.

   To provide an example, a borrower in Hawaii owned a property valued at $1,200,000. He wanted to sell the house but that never transpired and he eventually had to be satisfied with leasing the property, with an option to purchase it at a future time. The lease payouts served to meet his current mortgage payment, property taxes and homeowner's insurance. The renter furthermore agreed to pay him 200k as a down payment for a 3-year lease. These assurances meant he did not have to be concerned about the home's future financial obligations, so when a new real estate opportunity showed up, he found Read Rock Capital and obtained a private mortgage loan at seventy percent LTV. This means that he could make the downpayment for his next investment, and also help with his present mortgage.

4. They already have a private loan and can't pay the pending balloon payment.

   A person who invests in real estate and currently has an existing private loan and is unable to pay for the balloon payment thanks to a change in circumstances can apply for refinancing from a new lending company. Refinancing right before the term date helps the borrower to make the due date for the balloon payment and avert any consequences related to failing to make the balloon payment.

Interested in discussing your financing plans with a private mortgage lender in Grand Rapids? Complete the form or get in touch with us via phone to talk about your property.