Private real estate financing helps investors pay for, fix up or refinance a home using a short-term mortgage loan from a privately owned business or an individual. Whereas traditional lending institutions like banks necessitate a lengthy, time consuming application process and are more than likely to think twice about loaning money to a self-employed applicant, private mortgage loans in Kokomo close fast and are easy qualifying.

That is good for real estate investors considering that even somebody with bad credit can opt for private money for a real estate loan so long as he has a promising project, he has enough money for a downpayment, he has shown himself competent in real estate, and can show a preplanned exit strategy. And having fast closings of two weeks, private real estate mortgages in Kokomo may very well be the perfect solution for serious real estate investors.

Usually, customers contact a private mortgage lender in Kokomo when:

1. They want capital to fix up a home and property and market it for a higher price point or to rent it out at a higher monthly amount.

   Real example: one of our borrowers held a 2-unit rental. He already retained plenty of equity in the house and the rent delivered steady cash flow. A handful of choice home improvements would help him boost his rental prices, but having a below average credit score of 520, it was very probable that a bank would turn down his mortgage request. Hence, the borrower got in contact with Read Rock Capital (Read Rock Capital) to complete a cash-out refinance that provided him financing for 65% of the property's valuation.

2. They're stuck with numerous personal debts and would like to combine them.

   The majority of people find it stressful to deal with numerous payments on a monthly basis. Because of this, numerous people decide to make use of the equity in their house to consolidate each of their financial debts into only one mortgage with a lone payment per month.

3. They want to capitalize on the equity available in their current home to do a different real estate investment.

   To provide an example, a client located in Hawaii had a home appraised at $1.2M. He wanted to sell the house but that did not happen and he ultimately was forced to be content with leasing the house to an interested party, with an option to purchase it at a later date. The lease payments helped him meet his current mortgage expenses, taxes and homeowner's insurance. He also received a two hundred thousand dollars non-refundable advance payment for the 3-year lease agreement. Having these assurances to pay for the home's foreseeable financial obligations, he stumbled on another great investment opportunity and contacted Read Rock Capital to obtain a private mortgage loan close to seventy percent of the property's appraised value. This enabled him to make the down payment for his next property, and also repay his current mortgage.

4. They already have a preexisting loan and can't afford the looming balloon payment.

   If an unexpected mishap prevents a borrower from meeting his balloon payment due date, he can find an alternative lender to refinance. A cash-out refinance will help the person complete the balloon payment and escape penalty.

Looking to connect with a private mortgage lender in Kokomo to talk about funding programs for your upcoming project? Complete the form on this page or get in touch with us via phone and let's discuss your property.