Private real estate financing entails finding a short-term mortgage loan from a private company or individual person to be able to buy, carry out upgrades on or refinance a property. Unlike bank loans, Hanover private mortgage loans close fast, are easy to qualify for and available to self-employed applicants.

This is good news for investors considering that a person with weak credit can apply for private money for a real estate loan assuming that he has a promising project, he has adequate money for a down payment, he has demonstrated himself competent in real estate, and can show a sensible exit strategy. Additionally, the fast closing Hanover private real estate mortgages ensure that you get funding without delay, helping you close within a few short weeks.

In general, investors contact a private mortgage lender in Hanover when:

1. They need to remodel or make repairs to the home and property to be able to sell it at a higher price or to get higher rents.

   E.g. one of our clients had a twin-home / duplex. He had a great deal of equity available in the property and the rent payments brought in routine income each month. Although several improvements to the units might have enabled him to ask for more rent, a bank would likely have turned down the mortgage application, considering that he had a credit score of merely 520. When he approached Read Rock Capital to get financing, we were pleased to complete a cash-out refinance for 65% of the house's assessed value.

2. They need to combine unpaid debts.

   A lot of people know how stressful it is to take care of countless payments every month. Because of this, many people make the decision to make use of the equity in their residence to combine all their outstanding debts into only one private loan which has a single monthly payment.

3. They want to use the existing equity within a current home to do another real estate project.

   As one example, a homeowner in Hawaii owned a home appraised at $1.2M. When he was unable to secure a buyer for his home, he agreed to a lease-option-to-buy contract with somebody. The lease income served to meet his existing mortgage, taxes and homeowner's insurance. The tenant furthermore agreed to pay 200k for a downpayment for the 3 year lease agreement. Having these assurances to take care of the house's foreseeable financial obligations, he stumbled on another promising real estate opportunity and approached Read Rock Capital to obtain a private mortgage loan nearly seventy percent of the home's valuation. Meaning that he could make his down payment for the new property, and also pay down his current mortgage.

4. The balloon payment for an existing loan is owed soon and they cannot afford it.

   A person who invests in real estate and already has an existing private loan and is unable to afford the balloon payment as a result of a change of circumstances can apply for refinancing from a new lender. Refinancing prior to the due date allows you to meet the due date for the balloon payment and avoid fines associated with failing to pay the balloon payment.

Want to discuss financing programs with a private mortgage lender in Hanover? Enter your info into the form or get in touch with us via phone to discuss your project.