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Numerous real estate investors use private real estate financing to acquire a new home or property, or rehab or refinance one they already have. Illinois private mortgage loans have many advantages — they are fast closing, easy qualifying and additionally, are offered to self-employed individuals.
That's very fortunate for investors considering that even an individual with lousy credit can opt for private money for a real estate loan provided that he has a promising deal, he has plenty of cash for a down payment, he has demonstrated himself capable in prior real estate ventures, and he has a preplanned exit strategy. Combined with fast closings of two weeks, private real estate mortgages in Illinois may very well be the right solution for ambitious real estate investors.
Most real estate investors work with Illinois private mortgage lenders when:
They want to find capital to renovate a home and put it up for sale at a higher price or to rent it out for more money.
Real example: one of our borrowers held a two-family rental property. He had an abundance of equity available in the asset and the rent checks brought in regular income each month. A few select home enhancements would undoubtedly help him raise the cost of rent, but because of a low credit score of 520, it was very certain for a bank to turn down his mortgage application. So he turned to Read Rock Capital to obtain a cash-out refinance and obtained a loan at 65% LTV.
They've got multiple unsecured debts and wish to combine them.
Multiple debts with a variety of interest rates can be extremely overwhelming and challenging to manage. Due to this fact, numerous people borrow from their home equity to consolidate all their financial debts into a single mortgage loan.
They want to release the equity in one property and acquire a different one.
To provide an example, a customer located in Hawaii owned a home valued at $1,200,000. When he failed to secure a buyer for his house, he signed a lease-option-to-buy deal with an interested party. The lease income served to meet his existing mortgage expenses, taxes and insurance. The tenant additionally put two hundred thousand dollars towards a non-refundable advance payment when he signed the 3-year lease agreement. Having these assurances to cover the home's foreseeable financial obligations, he ran across a new investment opportunity and got into contact with Read Rock Capital to obtain a private mortgage loan around 70% of the home's value. The financing helped him finance a new investment property as well as repay his primary mortgage.
They already have a preexisting private loan and are unable to pay the looming balloon payment.
If an unexpected event prevents someone from making his balloon payment deadline, he could seek out a new company to refinance. Refinancing right before the due date enables the borrower to make the due date for the balloon payment and stay clear of penalties in connection with missing the balloon payment.
Looking to discuss your investment plans with a private mortgage lender in Illinois? Complete the contact form on this page or call us to talk about the property you have in mind.
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