Private real estate financing entails getting a short-term loan from a privately owned firm or individual person as a way to purchase, carry out upgrades on or refinance a home. While conventional lending institutions, for example, banks have a prolonged, drawn out application process and are more than likely to be reluctant to lend money to a self-employed individual, private mortgage loans in Kennebunk close fast and are easy qualifying.

That's why, while it's possible you have bad credit, having a real estate opportunity showing good potential, a significant downpayment, previous experience, and a clear-cut exit strategy are much more relevant in terms of qualifying for private money for a real estate loan. Furthermore, if you are hoping for a fast closing, you won't come across any available alternatives better than Kennebunk private real estate mortgages.

Typically, clients approach a private mortgage lender in Kennebunk when:

1. A rehab or restoration can allow them to offer the house at a much higher price or fetch significantly more rent.

   For instance, there was a borrower with a two-family rental property. He previously built a good amount of equity available in the asset and the rent was a regular source of income. Although several upgrades to the place would've helped him ask for higher rent, a bank would most likely have turned down his loan application, considering that he had a credit score of a mere 520. So he reached out to Read Rock Capital to obtain a cash-out refinance and acquired a loan at 65% LTV.

2. They're stuck with multiple debts and want to consolidate them.

   Most people find it stressful to make countless payments every month. As a result, lots of people get a loan against a property's equity to combine all of their debts into one manageable payment.

3. They prefer to take advantage of their property's equity for another real estate deal.

   To provide an example, a customer in Hawaii owned a property valued at $1,200,000. Because it was tough for him to find a purchaser for the place, he had identified someone who was wanting to lease it with the option to buy. The amount of rent was more than enough to take care of the cost of his ongoing mortgage bill, property taxes and insurance obligations. The renter also went ahead and paid two hundred thousand dollars in the form of a deposit for a 3-year lease contract. These sureties meant he no longer had to concern himself with the home's future expenses, and so when a new investment opportunity showed up, he came to Read Rock Capital and obtained a private mortgage loan at 70% LTV. This gave him more than enough money to use for a deposit on his next property, but additionally helped him pay down the current mortgage.

4. They already have an existing loan and are unable to pay the pending balloon payment.

   If a borrower is unable to meet a balloon payment because of unexpected factors, he can seek to refinance his loan with a different lender. Refinancing before the due date enables you to make the deadline for the balloon payment and avoid penalty charges in connection with failing to pay the balloon payment.

Hoping to find a private mortgage lender in Kennebunk to fund your investment purchase? Complete the contact form or get in touch with us via phone to talk about the property you have in mind.