A lot of real estate investors use private real estate financing to pay for a new property, or renovate or refinance one they already own. While traditional lenders, for example, banks require an extended, time consuming application process and are more than likely to be reluctant to give money to a self-employed applicant, private mortgage loans in Holualoa close fast and are easy to qualify for.

So while you might have bad credit, having a real estate opportunity showing good potential, a significant down payment, previous experience, and an intelligible exit strategy are much more important in regards to being qualified for private money for a real estate loan. Besides, if you want a fast closing, you won't find any options better than Holualoa private real estate mortgages.

Generally, customers seek out a private mortgage lender in Holualoa when:

1. They are in need of money to fix up a house and offer it for a much higher price point or to up the lease amount for tenants.

   One example is a client who operated a two-family rental. He already retained plenty of equity available in the house and the monthly rent delivered steady revenue. He wanted to do some upgrades to the place to be able to keep his rents high, but a poor credit score of 520 meant that a bank would turn down the loan application. When he got in touch with Read Rock Capital to obtain financing, we were pleased to do a cash-out refinance at 65% of the duplex's valuation.

2. They need to combine their unsecured debts into one loan.

   Many of us find it stressful to manage countless payments each and every month. For this reason, many people opt to make the most of the equity available in their home to combine their outstanding debts into one loan with a single payment per month.

3. They wish to use their property's equity for a different purchase.

   For example, a borrower in Hawaii had a property appraised at $1.2M. Since it was difficult for him to get an interested party for the place, he had someone that was ready to lease it with an option to buy. The rent checks were more than enough to cover his ongoing mortgage payment, property taxes and cost of insurance. The person also agreed to pay 200k for an advance payment for the 3 year contract. These sureties meant that he no longer needed to concern himself with the property's ongoing expenses, and as a result, when a new real estate opportunity showed up, he came to Read Rock Capital and got a private mortgage loan at 70% loan to value. This gave him plenty of capital to use for a down payment on his next home, but also helped him repay the existing mortgage.

4. The balloon payment for their current private mortgage is due and they are not able to handle it.

   A person who invests in real estate and currently has an existing private mortgage and cannot pay for the balloon payment thanks to a change in circumstances can submit an application for refinancing from a new loan company. A cash-out refinance will help you complete the balloon payment and escape consequences.

Hoping to discuss your mortgage alternatives with a private mortgage lender in Holualoa? Complete the contact form on this page or get in touch with us via phone to discuss your project.