Private real estate financing can help investors purchase, fix up or refinance a property using a short-term loan from a private company or an individual. Although typical lenders, for example, banks require a prolonged, time consuming application process and are likely to hesitate to loan money to a self-employed borrower, private mortgage loans in Greenwood close fast and have minimal eligibility requirements.

So while you might don't have great credit, having a real estate opportunity with good potential, a considerable down payment, past experience, and a good exit strategy are much more relevant when it comes to qualifying for private money for a real estate loan. Furthermore, if you are hoping for a fast closing, there are no better options than Greenwood private real estate mortgages.

Primarily, customers rely on Greenwood private mortgage lenders to lend money for their real estate ventures when:

1. They would like to renovate or make repairs to the home so that they can offer it for sale at a higher price point or to charge higher monthly rental fees.

   For instance, we had a customer who owned a 2-family rental. He'd already built up sufficient equity available in the building and the rent was a recurring revenue stream. While some upgrades to the units could have enabled him to command higher rent, a bank would most likely have turned down the mortgage application, due to the fact his credit score was a mere 520. Thus, he came to Read Rock Capital to obtain a cash-out refinance and received financing at 65% LTV.

2. They want to combine all of their debts into just one payment.

   Countless debts with a variety of interest rates are incredibly overwhelming and hard to keep track of. In order to arrange a more reasonable situation, some people merge all of their outstanding debts into an individual loan with one monthly payment.

3. They want to use their home's existing equity for another home purchase.

   One of Island View's customers located in Hawaii had a home valued at $1.2 million. When he failed to secure a buyer for his home, he entered into a lease-option-to-buy contract with an interested party. The lease payouts helped him meet his existing mortgage expenses, taxes and insurance. Additionally, he received a $200,000 non-refundable advance payment for the 3 year lease contract. Using these assurances to handle the home's expenses on an ongoing basis, he called Read Rock Capital for a seventy percent loan-to-value private mortgage loan to aid in his subsequent purchase of an investment property. This means that he could make a downpayment for the new property, and also repay his current mortgage.

4. They need help to satisfy the balloon payment for the current loan.

   If an unforeseen event prevents a borrower from making his balloon payment deadline, he can find another mortgage company to refinance. A cash-out refinance can help the person make the balloon payment and escape consequences.

Hoping to discuss your mortgage plans with a private mortgage lender in Greenwood? Enter your info into the form or give us a call and let's talk about your property or properties.