Private real estate financing can help investors pay for, remodel or refinance a home via a short-term mortgage loan from a privately owned business or an individual. Lafayette private mortgage loans have many advantages — they are fast closing, have minimal eligibility requirements and are also open to self-employed borrowers.

That's good for investors considering that even someone with lousy credit can obtain a private money for a real estate loan provided that he has a project that shows promise, he has adequate money for a down payment, he has demonstrated himself competent in real estate, and has a plan for an exit strategy. Furthermore, if you are searching for a fast closing, you won't see any available alternatives better than Lafayette private real estate mortgages.

Frequently, customers rely on Lafayette private mortgage lenders to fund their projects when:

1. They want to remodel or repair the home and property to be able to market it at an increased price point or to ask for higher rents.

   For instance, we had this client who owned a two-unit rental property. He had already built up adequate equity available in the building and the rent was a routine revenue stream. Some choice home improvements would allow him to raise the cost of rent, but since he had a bad credit score of 520, it was very likely for a bank to turn down the loan application. Thus, he reached out to Read Rock Capital to get a cash-out refinance and obtained a loan at 65% LTV.

2. They need to consolidate financial debts.

   Multiple debts with various lending rates are incredibly overwhelming and challenging to manage. Due to this, numerous people borrow against a property's equity to merge each of their financial debts into one manageable payment.

3. They want to take advantage of the existing equity available in their existing home to do a different real estate investment.

   One of our borrowers located in Hawaii owned a property valued at $1M. His idea was to sell the house but it did not happen and he ultimately was forced to settle for leasing the property to an interested party, with the option to buy down the road. The lease payouts served to meet his existing mortgage payment, taxes and homeowner's insurance. He also received a $200,000 non-refundable downpayment for the 3-year lease. These sureties meant that he no longer had to be concerned with the home's future expenses, so when another great real estate investment opportunity came up, he reached out to Read Rock Capital and obtained a private mortgage loan at seventy percent LTV. The borrowed funds helped him cover the cost of a new investment property and in addition, repay his original mortgage.

4. They have an existing mortgage and can't afford the pending balloon payment.

   If an unanticipated event stops a borrower from meeting his balloon payment due date, he can find another company to refinance. Refinancing ahead of the due date enables the borrower to make the due date for the balloon payment and avoid penalty charges associated with failing to make the balloon payment.

Intending to discuss your mortgage options with a private mortgage lender in Lafayette? Fill out the form or call us to discuss the property or properties you have in mind.