Private real estate financing gives assistance to real estate investors who want to pay for, remodel or refinance a home via a short-term mortgage loan from a privately owned company or an individual. Although standard lenders like banks necessitate a prolonged, drawn out application process and in all likelihood will be reluctant to lend money to a self-employed individual, private mortgage loans in Jersey City close fast and have minimal eligibility criteria.

This is very fortunate for real estate investors because even a person with bad credit can opt for private money for a real estate loan provided that he has a promising project, he has adequate money for a downpayment, he has proven himself capable in past real estate projects, and he can show a sensible exit strategy. And having fast closings of 2 weeks, private real estate mortgages in Jersey City are a perfect solution for ambitious real estate investors.

Normally, customers get a hold of a private mortgage lender in Jersey City when:

1. They would like to remodel or make repairs to the home to allow them to offer it at a higher price point or to fetch higher monthly rental fees.

   Real example: one of our clients held a two-unit rental. He had already built ample equity in the property and the monthly rent checks was a routine revenue stream. He wanted to perform some upgrades to the property in order to maintain high rents, but a low credit score of 520 meant that a bank would undoubtedly turn down his mortgage application. Accordingly, he reached out to Read Rock Capital to do a cash-out refinance and received financing at 65% LTV.

2. They want to combine financial debts.

   Numerous debts with varying interest rates are often very overwhelming and hard to manage. In order to make the situation more reasonable, some people combine each of their debts into an individual loan with one monthly payment.

3. They wish to use their house's existing equity for a different real estate deal.

   As an illustration, a client located in Hawaii owned a property appraised at $1.2M. He wanted to sell the house but that never materialized and he finally had to settle for leasing the house to someone, with an option to buy at a later time. The lease income helped him meet his existing mortgage, property taxes and insurance. The person also consented to pay him $200,000 as an advance payment for the three year agreement. Having these sureties to take care of the house's foreseeable financial obligations, he stumbled on another great real estate investment opportunity and got in touch with Read Rock Capital to obtain a private mortgage loan nearly 70% of the property's appraised value. The loan helped him pay for his next investment property and in addition, pay off his initial mortgage.

4. They already have a preexisting loan and can't pay the pending balloon payment.

   If an unexpected incident hinders a borrower from hitting his balloon payment deadline, he can contact another mortgage lender to refinance. Refinancing ahead of the due date allows the borrower to meet the due date for the balloon payment and avert any penalty charges associated with missing the balloon payment.

Hoping to connect with a private mortgage lender in Jersey City to go over financing programs for your next project? Complete the contact form or get in touch with us via phone and let's talk about your project.