Private real estate financing means obtaining a short-term mortgage via a privately owned firm or individual with the intention to purchase, perform upgrades on or refinance a home or property. Although conventional lending institutions, for example, banks require a prolonged, drawn out application process and are more than likely to hesitate to offer money to a self-employed borrower, private mortgage loans in Lewiston close fast and are easy qualifying.

This means that no matter the level of your credit score, you still have a good chance of obtaining private money for a real estate loan if your project is presumed to be profitable, you have enough money available for the down payment, you have demonstrated yourself able in earlier real estate ventures, you have substantial equity in the property or you can show an intelligible plan to pay back the loan. Furthermore, if you are hoping for a fast closing, you will not find many available alternatives better than Lewiston private real estate mortgages.

Most real estate professionals speak with Lewiston private mortgage lenders when:

1. They want to remodel or repair the property to be able to market it at an increased price point or to charge higher monthly rental fees.

   For instance, there was a client with a two-family rental. At the time, he had a good deal of equity available in the building and the rent checks delivered steady revenue. He wanted to perform some modifications to the property to help maintain high rents, but a poor credit score of 520 meant a bank would undoubtedly turn down his mortgage request. Consequently, the client got in touch with Read Rock Capital (Read Rock Capital) to execute a cash-out refinance that in turn gave him financing for 65% of the property's appraised value.

2. They wish to combine debts.

   Numerous unsecured debts with varying interest rates can be very overwhelming and challenging to manage. As a result, lots of people get a loan from their home equity to combine all of their financial debts into a single manageable payment.

3. They prefer to utilize their property's equity for some other purchase.

   One of our clients located in Hawaii had a residence worth $1.2 million. When he was unable to secure a buyer for his property, he entered into a lease-option-to-buy arrangement with somebody. The lease payments helped him meet his current mortgage payment, property taxes and homeowner's insurance. The renter additionally put two hundred thousand dollars for a non-refundable downpayment as part of signing the three year agreement. The signed agreement meant that he did not have to be concerned with the property's ongoing expenses, so when another great real estate opportunity came up, he reached out to Read Rock Capital and got a private mortgage loan at 70% LTV. This means that he was able to make a down payment for the new investment, and also pay down his present mortgage.

4. The balloon payment for an existing mortgage is owed soon and they can't handle it.

   If someone is unable to pay a balloon payment thanks to unanticipated factors, he can make an effort to refinance his loan with an alternative mortgage lender. A cash-out refinance can help the borrower complete the balloon payment and evade fines.

Wanting to meet a private mortgage lender in Lewiston to discuss loan alternatives for your next investment? Submit the form on this page or give us a call to discuss the property you have in mind.