Countless real estate investors depend on private real estate financing to purchase a new home or property, or remodel or refinance an existing one. Whereas traditional lending institutions like banks will require a prolonged, drawn out application process and are likely to be reluctant to lend money to a self-employed individual, private mortgage loans in Independence close fast and are easy to qualify for.

So in case you don't have very good credit, having a promising real estate opportunity, a considerable down payment, previous experience, and a clear-cut exit strategy are more relevant in regards to being eligible for private money for a real estate loan. And having fast closings of 2 weeks, private real estate mortgages in Independence may very well be the perfect solution for real estate investors.

Normally, clients approach a private mortgage lender in Independence when:

1. A rehab or restoration will make it possible to market the house at a much higher price point or charge more rent.

   For instance, we had this borrower who owned a 2-family rental. He'd already built sufficient equity in the building and the monthly rent checks was a routine source of income. He desired to complete some renovation to the place so that he could keep his rents high, but a below average credit score of 520 meant that a bank would undoubtedly turn down the loan request. Thus, he reached out to Read Rock Capital to obtain a cash-out refinance and received a loan at 65% LTV.

2. They wish to merge their unsecured debts into just one loan.

   Countless outstanding debts with varying lending rates can be quite overwhelming and challenging to keep tabs on. To successfully make the situation more reasonable, people merge all of their unsecured debts into a single line of credit with just one payment per month.

3. They wish to take advantage of the existing equity within an existing property to work on a different real estate project.

   One of our clients in Hawaii had a home valued at $1M. Though it was difficult for him to find an interested party for the house, he had found a person who was willing to lease it with the option to purchase it. The money that stemmed from the rental payments took care of his monthly mortgage bill, insurance, and property taxes. In addition, he received a two hundred thousand dollars non-refundable advance payment for the 3-year contract. These assurances meant that he did not have to worry about the property's ongoing expenses, and as a result, when a new real estate investment opportunity surfaced, he found Read Rock Capital and got a private mortgage loan at seventy percent loan to value. The financing helped him cover the cost of his next investment and in addition, repay his original mortgage.

4. They have a previous private loan and cannot pay the pending balloon payment.

   If a borrower is not able to make a balloon payment as a result of unforeseen factors, he can attempt to refinance his loan with a different loan provider. Refinancing prior to the term date helps the borrower to make the deadline for the balloon payment and stay clear of fines associated with missing the balloon payment.

Want to discuss your mortgage options with a private mortgage lender in Independence? Enter your info into the contact form or give us a call and let's discuss your property or properties.