A lot of real estate investors use private real estate financing to buy a new home or property, or renovate or refinance an existing one. Whereas conventional lenders such as banks have an extended, drawn out application process and are more than likely to think twice about loaning money to a self-employed client, private mortgage loans in close fast and are easy qualifying.

Thus, while it's possible you have lousy credit, having a promising real estate opportunity, a substantial down payment, previous experience, and a clear-cut exit strategy are much more crucial when being eligible for private money for a real estate loan. Besides, if you need a fast closing, you won't find any options better than Kotzebue private real estate mortgages.

Most borrowers depend on Kotzebue private mortgage lenders when:

1. A remodeling job or update will help them sell the home for a much higher price or bring in additional rent.

   For example, there was this customer with a two-family rental property. He previously built up ample equity in the building and the monthly rent checks was a regular income source. While some improvements to the property could have enabled him to collect more rent, a bank would definitely have turned down his loan application, since he had a credit score of a mere 520. So he reached out to Read Rock Capital to get a cash-out refinance and received a loan at 65% LTV.

2. They're saddled with multiple personal debts and would like to combine them.

   Multiple unsecured debts with various lending rates can be very overwhelming and tough to keep tabs on. Because of this, many people decide to take advantage of the equity available in their residence to consolidate all their unsecured debts into a single mortgage loan having a single payment per month.

3. They want to utilize the existing equity in an existing home and property to work on another real estate investment.

   As one example, a homeowner located in Hawaii had a property appraised at $1,200,000. While it was hard for him to get an interested party for his home, he had identified an individual who was willing to lease it with the option to buy. The rental agreement income served to meet his current mortgage expenses, property taxes and insurance. Additionally, he was given a $200k non-refundable deposit for the 3 year lease contract. Having these assurances to handle the home's bills on a regular basis, he contacted Read Rock Capital to get a 70% LTV private mortgage loan to help with his subsequent purchase of an investment property. Meaning that he was able to make his deposit for the new property, and also pay down his present mortgage.

4. The balloon payment for a previous loan is owed soon and they can not pay it.

   A person who invests in real estate and has a prior private mortgage loan and is unable to afford the balloon payment on account of a change of circumstances can submit an application for refinancing from another company. Refinancing before the term date enables you to meet the due date for the balloon payment and avoid fines in connection with failing to pay the balloon payment.

Looking to discuss your financing options with a private mortgage lender in Kotzebue? Submit the contact form or call us and let's talk about your property or properties.