Private real estate financing helps investors purchase, renovate or refinance a property using a short-term mortgage loan from a private company or an individual. In contrast to loans from banks, Hooper Bay private mortgage loans are fast closing, have minimal eligibility criteria and open to self-employed applicants.

That is very good news for investors since someone with lousy credit can opt for private money for a real estate loan assuming that he has a promising deal, he has adequate money for a downpayment, he has shown himself capable in earlier real estate projects, and he has a sensible exit strategy. Additionally, Hooper Bay private real estate mortgages close fast to ensure that you get funding without delay, helping you close on a deal within 2 or 3 weeks.

Mostly, borrowers ask Hooper Bay private mortgage lenders to supply capital for their real estate ventures when:

1. They would like to renovate or repair the home and property so that they can sell it at a higher price or to fetch higher rents.

   As an illustration, one of our customers held a two-unit rental. He held enough equity available in the property and the rent checks generated regular income each month. Although several improvements to the units may have enabled him to ask for higher rent, a bank would most likely have turned down the loan application, because he had a credit score of down at 520. So he turned to Read Rock Capital to get a cash-out refinance and received a loan at 65% LTV.

2. They've got numerous unsecured debts and prefer to consolidate them.

   Countless debts with a range of interest rates can be too much to handle and difficult to keep tabs on. This is the reason a lot of people choose to make use of the equity available in their house to merge all their unsecured debts into only one mortgage which has a single payment per month.

3. They want to make use of the existing equity available in their existing house to do an additional real estate investment.

   One of our clients located in Hawaii had a residence valued at $1M. When he could not procure a buyer for his house, he agreed to a lease-option-to-buy deal with an interested party. The rental agreement payouts served to meet his existing mortgage payment, taxes and insurance. The tenant furthermore consented to pay him two hundred thousand dollars for a downpayment for the 3 year lease contract. Having these assurances to take care of the property's foreseeable financial obligations, he discovered a new investment opportunity and got into contact with Read Rock Capital to obtain a private mortgage loan around 70% of the property's value. This allowed him to pay an advance on the deposit for his next property, and furthermore pay down his current mortgage.

4. The balloon payment for a previous mortgage is owed soon and they cannot handle it.

   If someone cannot meet a balloon payment because of unforeseen causes, he can make an effort to refinance his loan with a new lending company. A cash-out refinance can help the person pay the balloon payment and evade penalty.

Hoping to meet a private mortgage lender in Hooper Bay to talk about funding options for your upcoming investment? Submit the contact form or give us a call and let's discuss the property you have in mind.