Private real estate financing means obtaining a short-term mortgage through a privately owned business or individual with the intention to buy, perform upgrades on or refinance a property. Whereas traditional lenders such as banks require a lengthy, drawn out application process and in all likelihood will hesitate to give money to a self-employed customer, private mortgage loans in Ithaca close fast and are easy to qualify for.

So while you might have lousy credit, having a promising real estate opportunity, a considerable downpayment, previous real estate experience, and a clear exit strategy are a great deal more relevant in terms of being qualified for private money for a real estate loan. Additionally, Ithaca private real estate mortgages close fast to ensure that you get financing without delay, letting you close within weeks.

Ordinarily, people count on Ithaca private mortgage lenders to finance their real estate ventures when:

1. A remodeling job or renovation can allow them to offer the house for a much higher price or charge significantly more rent.

   As an example, one of our borrowers had a twin-home / duplex. He previously built ample equity in the house and the monthly rent checks was a recurring revenue stream. A number of select home enhancements would help him increase the cost of rent, but because of a bad credit score of 520, it was extremely likely for a bank to turn down the mortgage request. Consequently, the borrower approached Read Rock Capital (Read Rock Capital) to do a cash-out refinance which in turn provided him financing for 65% of the property's value.

2. They wish to merge all their debts into one loan.

   Multiple outstanding debts with different lending rates are incredibly overwhelming and difficult to keep tabs on. Because of this, many people choose to make use of the equity available in their house to consolidate all their outstanding debts into only one loan having a lone monthly payment.

3. They want to unlock their existing equity in one home or property and use it to invest in another one.

   Here is an example. A client located in Hawaii had his residence which was valued at $1.2M. When he was not able to procure a buyer for the house, he agreed to a lease-option-to-buy arrangement with somebody. The amount of rent was more than enough to cover the cost of his monthly mortgage bill, property taxes and insurance payments. The tenant furthermore went ahead and paid him 200k in the form of a downpayment for the 3-year lease. Using these assurances to take care of the home's expenses on an ongoing basis, he called Read Rock Capital for a 70% loan-to-value private mortgage loan to aid in his next real estate investment. This means that he was able to make his down payment for his next property, and also help with his existing mortgage.

4. They want help to meet the balloon payment for the current loan.

   If an unanticipated incident prevents someone from hitting his balloon payment deadline, he could approach another mortgage lender to refinance. A cash-out refinance can help the borrower complete the balloon payment and escape consequences.

Looking to discuss loan options with a private mortgage lender in Ithaca? Enter your info into the contact form on this page or call us to talk about your property or properties.