Numerous real estate investors count on private real estate financing to purchase a new property, or update or refinance an existing one. In contrast to bank loans, Honolulu private mortgage loans are fast closing, easy qualifying and accessible to self-employed applicants.

That is very good news for investors since even anyone with weak credit can opt for private money for a real estate loan as long as he has a project that shows strong potential, he has plenty of cash for a down payment, he has shown himself capable in the real estate market, and he can show a plan for an exit strategy. Combined with fast closings of only 14 days, private real estate mortgages in Honolulu may very well be the right alternative for real estate investors.

Mostly, borrowers rely upon Honolulu private mortgage lenders to fund their projects when:

1. They need to renovate or repair the property in order to offer it for sale at an increased price or to ask for higher monthly rental fees.

   Real example: one of our clients owned a 2-unit rental. He previously built adequate equity available in the building and the rent payments was a regular source of income. He sought to perform some upgrades to the units to be able to maintain high rents, but a low credit score of 520 meant that a bank would turn down the loan request. And so he came to Read Rock Capital for a cash-out refinance and received a loan at 65% LTV.

2. They need to combine their outstanding debts into one single payment.

   Countless outstanding debts with varying interest rates are often rather overwhelming and challenging to keep tabs on. To set up a more workable situation, people combine all their outstanding debts into an individual mortgage loan with just one monthly payment.

3. They would like to take advantage of the equity available in their existing house to work on a different real estate project.

   As one example, a customer located in Hawaii had a property valued at $1,200,000. Because it was tough for him to get an interested party for his home, he had found a person who was ready to lease it having an option to buy. The lease payouts served to meet his existing mortgage expenses, taxes and homeowner's insurance. Additionally, he was given a $200k non-refundable deposit for the three year agreement. With these assurances covering the home's bills on a recurring basis, he called Read Rock Capital to get a 70% LTV private mortgage loan to help with his subsequent real estate investment. This allowed him to pay an advance on the deposit for the new investment, and furthermore helped with his current mortgage.

4. The balloon payment for a previous loan is owed soon and they are unable to handle it.

   A person who invests in real estate and currently has an existing private mortgage and is unable to pay for the balloon payment on account of a change in circumstances can apply for refinancing from a different lending company. Refinancing ahead of the term date helps the borrower to meet the deadline for the balloon payment and stay clear of consequences in connection with failing to pay the balloon payment.

Looking for a private mortgage lender in Honolulu to fund your investment purchase? Submit the contact form or give us a call and let's talk about the project you have in mind.