Private real estate financing helps investors purchase, remodel or refinance a home or property using a short-term loan from a privately owned company or an individual. Whereas typical lending institutions, for example, banks require a lengthy, drawn out application process and are likely to think twice about giving money to a self-employed applicant, private mortgage loans in Houma close fast and have minimal eligibility requirements.

That is good news for real estate investors since even a person with lousy credit can apply for private money for a real estate loan assuming that he has a deal that shows strong potential, he has plenty of cash for a down payment, he has proven himself competent in the real estate market, and he can show a good exit strategy. Additionally, the fast closing Houma private real estate mortgages provide you with financing right away, letting you close within weeks.

Often, borrowers consult Houma private mortgage lenders to lend money for their real estate ventures when:

1. A remodeling job or update can help to market the home for a higher price or fetch more rent.

   To illustrate, a past investor owned a twin-home / duplex. He held a great deal of equity in the property and the rent checks brought in routine monthly income. A few choice home renovations would allow him to bump up his rental prices, but with a low credit score of 520, it was very certain that a bank would turn down his loan application. And so he came to Read Rock Capital for a cash-out refinance and got a loan at 65% LTV.

2. They have multiple debts and want to consolidate them.

   Numerous debts with a variety of lending rates are incredibly overwhelming and difficult to keep an eye on. This is why a lot of people make the decision to utilize the equity in their home to combine their financial debts into only one mortgage which has a single monthly payment.

3. They want to take advantage of the equity available in an existing property or home to work on a different project.

   One of our borrowers located in Hawaii had a residence worth $1M. When he could not secure a buyer for his house, he agreed to a lease-option-to-buy arrangement with an interested party. The money that came from the rent took care of his regular mortgage expenses, insurance, and property taxes. The tenant also gave two hundred thousand dollars towards a non-refundable down payment as part of signing the 3-year lease. Using these sureties to take care of the home's financial obligations on a regular basis, he called Read Rock Capital to obtain a 70% LTV private mortgage loan to help with his upcoming real estate investment. This means that he could make his deposit for the new investment, and also help with his current mortgage.

4. They already have an existing private loan and are unable to pay the pending balloon payment.

   A real estate investor who already has an existing private mortgage loan and cannot afford the balloon payment as a result of a change of circumstances can apply for refinancing from a different company. Refinancing before the term date enables the borrower to make the deadline for the balloon payment and avert any penalty charges related to missing the balloon payment.

Are you looking for a private mortgage lender in Houma to finance your investment purchase? Fill out the contact form on this page or call us and let's discuss your property or properties.