Private real estate financing involves obtaining a short-term mortgage loan via a privately owned firm or individual with the intention to purchase, carry out improvements on or refinance a home. Jerome private mortgage loans have many advantages — they close fast, are easy to qualify for and additionally, are available to self-employed applicants.

This means that no matter the level of your credit score, there is still a high likelihood of receiving private money for a real estate loan if your undertaking is viewed to be profitable, you have enough capital to use for the down payment, you have demonstrated yourself competent in real estate previously, you have considerable equity contained in the property or you have an intelligible plan to pay back the loan. And having fast closings of two weeks, private real estate mortgages in Jerome are an ideal solution for ambitious real estate investors.

Most real estate investors use Jerome private mortgage lenders when:

1. They want to update or repair the home so they can sell it at a higher price or to fetch higher monthly rental fees.

   Real example: one of our applicants operated a two-unit rental property. He had a great deal of equity available in the house and the rent payments brought in routine monthly income. While a few upgrades to the units may have enabled him to collect higher rent, a bank would undoubtedly have turned down his mortgage application, due to the fact his credit score was only 520. Thus, he turned to Read Rock Capital for a cash-out refinance and got a loan at 65% LTV.

2. They need to consolidate their unpaid debts.

   Multiple unsecured debts with a range of rates are incredibly overwhelming and challenging to manage. In order to make the situation more reasonable, some people combine all of their financial debts into a single mortgage loan with only one monthly payment.

3. They wish to unlock their equity in one property or home and use it to purchase a different one.

   As an illustration, a borrower located in Hawaii had a house appraised at $1,200,000. When he could not secure a buyer for the home, he agreed to a lease-option-to-buy deal with an interested party. The amount of rent was adequate to pay for his regular mortgage payment, taxes and cost of insurance. He also was given a two hundred thousand dollars non-refundable downpayment for the 3 year contract. These sureties meant that he no longer had to concern himself with the home's ongoing financial obligations, so when another promising real estate opportunity showed up, he came to Read Rock Capital and obtained a private mortgage loan at 70% LTV. This let him make the downpayment for his next investment, and furthermore helped with his current mortgage.

4. They have a previous mortgage and can't pay the looming balloon payment.

   If an unexpected event prevents a borrower from meeting his balloon payment deadline, he can seek out an alternative company to refinance. A refinance will help the borrower hit the cut-off date for the balloon payment and prevent any fines.

Looking to meet a private mortgage lender in Jerome speak about financing alternatives for your next project? Fill out the contact form on this page or give us a call to discuss your project.