Private real estate financing involves obtaining a short-term mortgage via a privately owned firm or individual in order to purchase, perform improvements on or refinance a home or property. Although traditional lenders, for example, banks require a lengthy, time consuming application process and in all likelihood will be reluctant to loan money to a self-employed applicant, private mortgage loans in Kennewick close fast and are easy to qualify for.

This is very good news for real estate investors since even a person with weak credit can qualify for private money for a real estate loan given that he has a project that shows strong potential, he has plenty of cash for a down payment, he has demonstrated himself capable in real estate, and he can show a good exit strategy. And having fast closings of just fourteen days, private real estate mortgages in Kennewick are an ideal solution for ambitious real estate investors.

Most borrowers speak with Kennewick private mortgage lenders when:

1. A remodeling job or renovation can allow them to market the home at a higher price or bring in additional rent.

   By way of example, there was a customer with a 2-unit rental property. At the time, he had plenty of equity available in the building and the rent brought in a steady revenue. Though several remodeling work to the place would have enabled him to collect higher rent, a bank would definitely have turned down the loan request, since he had a credit score of a mere 520. Accordingly, he reached out to Read Rock Capital to get a cash-out refinance and got financing at 65% LTV.

2. They want to combine their debts.

   Many people think it is stressful to deal with numerous payments on a monthly basis. Due to this, numerous people do a loan against their home's equity to merge their debts into just one loan.

3. They want to utilize their house's equity for a different real estate deal.

   One of Island View's borrowers located in Hawaii owned a residence valued at $1.2 million. While it was tough for him to secure an interested party for the property, he had identified someone that was willing to lease it having the option to buy. The rental agreement income made it possible to meet his current mortgage expenses, taxes and insurance. The renter additionally included $200k for a non-refundable down payment when he signed the 3-year agreement. The signed agreement meant that he no longer needed to worry about the home's future expenses, and thus, when a new investment opportunity came up, he came to Read Rock Capital and received a private mortgage loan at 70% loan to value. This allowed him to pay an advance on the deposit for the new property, and also repay his current mortgage.

4. They need assistance to satisfy the balloon payment for the existing mortgage loan.

   A person who invests in real estate and has a previous private loan and cannot pay for the balloon payment thanks to a change in circumstances can apply for refinancing from a different lender. A refinance can help the borrower hit the cut-off date for the balloon payment and steer clear of any penalties.

In search of a private mortgage lender in Kennewick to finance your real estate investment? Enter your info into the contact form or give us a call to discuss the property you have in mind.