Private real estate financing helps investors buy, remodel or refinance a home utilizing a short-term loan from a privately owned business or an individual. In contrast to bank loans, Lakewood private mortgage loans close fast, are easy to qualify for and available to self-employed individuals.

This is good for investors since somebody with poor credit can opt for private money for a real estate loan provided that he has a promising deal, he has adequate money for a down payment, he has shown himself competent in the real estate market, and he can show a good exit strategy. Combined with fast closings of just two weeks, private real estate mortgages in Lakewood are the right alternative for ambitious real estate investors.

Ordinarily, people pay a visit to Lakewood private mortgage lenders to finance their projects when:

1. They would like to remodel or fix up the home so they can sell it at an increased price or to charge higher rents.

   One example is a customer who held a 2-unit rental. He previously built up a good amount of equity available in the building and the monthly rent checks was a recurring revenue stream. Although several upgrades to the units would have helped him command more rent, a bank would likely have turned down the loan request, since his credit score was down at 520. So he turned to Read Rock Capital to do a cash-out refinance and received a loan at 65% LTV.

2. They would like to combine unpaid debts.

   Multiple debts with a range of lending rates can be very overwhelming and difficult to keep tabs on. To help make the situation more manageable, some people merge all their unsecured debts into a single mortgage loan with just one monthly payment.

3. They would like to allocate the existing equity in one property or home and purchase another one.

   By way of example, one of Island View's previous borrowers in Hawaii had a place appraised above a million dollars. Since it was tough for him to get a buyer for his home, he had found somebody who was willing to lease it with an option to buy. The lease payments made it possible to meet his existing mortgage expenses, property taxes and homeowner's insurance. In addition, he received a $200,000 non-refundable down payment for the 3-year contract. Having these assurances to take care of the property's financial obligations on an ongoing basis, he contacted Read Rock Capital to get a seventy percent loan-to-value private mortgage loan to help with his next investment. This not only gave him adequate cash to put towards a down payment or his next property, but additionally helped him pay off the existing mortgage.

4. The balloon payment for a prior mortgage is due and they are unable to handle it.

   A real estate investor who already has an existing private loan and is unable to pay for the balloon payment because of a change of circumstances can fill out an application for refinancing from another company. Refinancing prior to the due date allows the borrower to make the deadline for the balloon payment and avoid penalty charges related to failing to pay the balloon payment.

Want to discuss loan alternatives with a private mortgage lender in Lakewood? Fill out the contact form on this page or give us a call to talk about your project.