Private real estate financing involves finding a short-term loan through a privately owned business or individual person as a way to buy, perform improvements on or refinance a home. As opposed to loans from banks, Kapaa private mortgage loans are fast closing, have minimal eligibility criteria and offered to self-employed applicants.

That's good news for investors because anyone with weak credit can apply for private money for a real estate loan as long as he has a project that shows strong potential, he has sufficient money for a down payment, he has demonstrated himself capable in real estate, and has a sensible exit strategy. Furthermore, if you want a fast closing, there are no better options than Kapaa private real estate mortgages.

In general, clients seek out a private mortgage lender in Kapaa when:

1. They need to update or fix up the house to enable them to sell it at a much higher price point or to ask for higher monthly rental fees.

   For example, we had this borrower with a 2-family rental property. He had already built sufficient equity in the building and the rent was a routine income source. He sought to do some renovation to the units so that he could maintain high rents, but a lower credit score of 520 meant a bank would turn down his loan request. When he got in contact with Read Rock Capital for a mortgage, we were happy to complete a cash-out refinance for 65% of the duplex's appraised value.

2. They're saddled with multiple outstanding debts and prefer to consolidate them.

   Most people think it is stressful to deal with multiple payments every month. For this reason, some people decide to make the most of the equity available in their house to merge all of their financial debts into a single mortgage with a lone payment per month.

3. They wish to employ the existing equity in one home or property and acquire another one.

   For instance, one of our past clients in Hawaii had a house appraised at more than a million dollars. His plans to sell the house never materialized and he eventually had to be satisfied with leasing the house to an interested party, with the option to buy at a future date. The rent amount was enough to take care of his ongoing mortgage payment, property taxes and cost of homeowner's insurance. The renter additionally put $200k towards a non-refundable down payment as part of signing the 3 year lease agreement. These assurances meant he no longer needed to worry about the home's future expenses, and as a result, when another great real estate opportunity surfaced, he found Read Rock Capital and received a private mortgage loan at 70% loan to value. The financing helped him pay for a different investment property and in addition, pay off his primary mortgage.

4. The balloon payment for their current private loan is owed soon and they are unable to afford it.

   A person who invests in real estate and has a previous private mortgage loan and cannot pay for the balloon payment thanks to a change of circumstances can fill out an application for refinancing from a different lender. A refinance can help the person avoid missing the due date for the balloon payment and prevent any penalty charges.

In search of a private mortgage lender in Kapaa to fund your real estate investment? Complete the form or give us a call and let's discuss the property you have in mind.