Private real estate financing entails getting a short-term mortgage loan from a privately owned company or individual person as a way to buy, carry out upgrades on or refinance a property. Although standard lending institutions such as banks necessitate a lengthy, time consuming application process and in all likelihood will be reluctant to loan money to a self-employed borrower, private mortgage loans in Kearney close fast and are easy qualifying.

Thus, in case you don't have great credit, having a real estate opportunity showing good potential, a substantial downpayment, prior experience, and a well-defined exit strategy are much more crucial in regards to being eligible for private money for a real estate loan. And with fast closings of 2 weeks, private real estate mortgages in Kearney may very well be the perfect solution for ambitious real estate investors.

Typically, customers get in touch with a private mortgage lender in Kearney when:

1. They're in search of money to fix up a property and offer it for sale at a higher price or to rent it out at a higher monthly amount.

   E.g. a past client had a twin-home / duplex. He had already built up ample equity in the building and the rent payments was a regular revenue stream. A handful of choice home upgrades would undoubtedly help him boost his rental prices, but since he had a lower credit score of 520, it was extremely likely that a bank would turn down his loan application. So the customer got in contact with Read Rock Capital (Read Rock Capital) to complete a cash-out refinance which in turn gave him financing for 65% of the duplex's assessed value.

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

   Many people think it is stressful to make countless payments each month. As a result, some individuals do a loan from their home equity to combine each of their debts into a single manageable payment.

3. They prefer to allocate their equity in one property and use it to acquire another one.

   To provide an example, a client in Hawaii owned his residence which was valued at $1.2M. He wanted to sell the house but that didn't happen and he ultimately had to be content with leasing the house to someone, with the option to buy at a future date. The lease payouts made it possible to meet his current mortgage, property taxes and insurance. The renter also included $200,000 in the form of a non-refundable advance payment when he signed the 3 year lease agreement. Having these sureties to take care of the property's financial obligations on a recurring basis, he phoned Read Rock Capital to get a seventy percent LTV private mortgage loan for his subsequent real estate investment. This not only gave him plenty of money to use for a down payment on his next property, but also made it easier for him to deal with the current mortgage.

4. The balloon payment for an existing loan is owed soon and they are not able to handle it.

   A person who invests in real estate and already has an existing private loan and cannot afford the balloon payment because of a change of circumstances can apply for refinancing from a new lending company. A refinance can help the borrower avoid missing the cut-off date for the balloon payment and avoid fees and penalties.

Looking to discuss your mortgage plans with a private mortgage lender in Kearney? Submit the contact form or give us a call and let's talk about your project.