Private real estate financing gives assistance to investors who want to purchase, renovate or refinance a property using a short-term loan from a private company or an individual. Contrary to bank loans, Greenbelt private mortgage loans close fast, are easy to qualify for and offered to self-employed borrowers.

That's great news for investors because even a person with poor credit can obtain a private money for a real estate loan provided that he has a project that shows promise, he has adequate money for a downpayment, he has proven himself capable in the real estate market, and he can show a preplanned exit strategy. And with fast closings of only 14 days, private real estate mortgages in Greenbelt may very well be the right alternative for serious real estate investors.

Most borrowers use Greenbelt private mortgage lenders when:

1. A remodeling job or update will help to sell the house at a much higher price or fetch more rent.

   E.g. a past borrower owned a duplex. He already had a good deal of equity available in the building and the rent brought in a steady income. Some choice home enhancements would undoubtedly help him raise his rental prices, but because of a poor credit score of 520, it was extremely likely for a bank to turn down his loan application. After he got in contact with Read Rock Capital to get financing, we were happy to do a cash-out refinance at 65% of the property's appraised value.

2. They're stuck with numerous unsecured debts and wish to consolidate them.

   Countless outstanding debts with a variety of interest rates are quite overwhelming and difficult to manage. This is why a lot of people opt to utilize the equity in their house to merge all their unsecured debts into just one mortgage loan which has a lone monthly payment.

3. They would like to unlock their equity in one house and use it to invest in a different one.

   One of Island View's borrowers located in Hawaii owned a property worth $1.2 million. When he was unable to procure a buyer for the property, he signed a lease-option-to-buy deal with an interested party. The income that came from the lease contract paid for his regular mortgage expenses, home owner's insurance, and property taxes. The renter also put two hundred thousand dollars in the form of a non-refundable downpayment when he signed the three year lease agreement. These sureties meant that he no longer had to be concerned about the property's future expenses, and as a result, when another promising real estate investment opportunity came up, he reached out to Read Rock Capital and obtained a private mortgage loan at seventy percent loan to value. This means that he was able to make the downpayment for his next investment, and also pay down his present mortgage.

4. The balloon payment for a prior mortgage is due and they can not pay it.

   If an unforeseen incident prevents someone from meeting his balloon payment deadline, he can contact an alternative loan company to refinance. A refinance will help the borrower avoid missing the cut-off date for the balloon payment and avoid fines.

Interested in discussing financing options with a private mortgage lender in Greenbelt? Fill out the form or give us a call and let's talk about your property.