Private real estate financing entails finding a short-term loan from a private firm or individual person as a way to purchase, carry out upgrades on or refinance a property. While traditional lending institutions, for example, banks require a prolonged, time consuming application process and in all likelihood will be reluctant to loan money to a self-employed borrower, private mortgage loans in Harrisonburg close fast and have minimal eligibility criteria.

So even if you don't have great credit, having a real estate opportunity with good potential, a sizeable downpayment, previous experience, and a clear exit strategy are a great deal more relevant in terms of being approved for private money for a real estate loan. Besides, if you are looking for a fast closing, you will not find many available alternatives better than Harrisonburg private real estate mortgages.

Most real estate investors talk with Harrisonburg private mortgage lenders when:

1. They would like to update or repair the property or home in order to offer it for sale at a much higher price or to bring in higher rents.

   For example, there was this customer who owned a 2-unit rental property. He had plenty of equity in the house and the rent checks brought in routine income each month. He wanted to complete some renovation to the place to help maintain high rents, but a below average credit score of 520 meant that a bank would undoubtedly turn down the loan request. So he reached out to Read Rock Capital for a cash-out refinance and acquired financing at 65% LTV.

2. They're stuck with multiple unsecured debts and desire to consolidate them.

   Countless outstanding debts with a range of lending rates are incredibly overwhelming and hard to keep tabs on. For this reason, some people opt to make use of the equity available in their residence to merge all of their financial debts into only one mortgage with a single monthly payment.

3. They wish to unlock their existing equity in one house and use it to buy another one.

   One of our borrowers located in Hawaii owned a house worth $1M. Because it was difficult for him to secure a purchaser for his house, he had somebody who was wanting to lease it with the option to purchase it. The lease payments served to meet his existing mortgage, property taxes and homeowner's insurance. The tenant furthermore consented to pay two hundred thousand dollars as a down payment for the 3 year lease agreement. These sureties meant he did not have to worry about the property's future financial obligations, and as a result, when a new real estate investment opportunity showed up, he came to Read Rock Capital and got a private mortgage loan at 70% LTV. The financing helped him cover the cost of a new investment property and in addition, deal with his primary mortgage.

4. The balloon payment for an existing loan is due and they can't afford it.

   If an unforeseen mishap hinders someone from making his balloon payment deadline, he could find another loan company to refinance. A cash-out refinance will help you complete the balloon payment and escape penalty.

Trying to find a private mortgage lender in Harrisonburg to help you afford your real estate investment? Submit the contact form or give us a call and let's talk about the property or properties you have in mind.