Private real estate financing involves obtaining a short-term mortgage loan from a privately owned company or individual person to be able to purchase, carry out upgrades on or refinance a home or property. Contrary to bank loans, Lexington private mortgage loans close fast, are easy to qualify for and obtainable by self-employed individuals.

So while it's possible you have bad credit, having a promising opportunity, a significant down payment, prior real estate experience, and a clear exit strategy are much more important when being qualified for private money for a real estate loan. What's more, Lexington private real estate mortgages close fast to supply you with funding without delay, allowing you to close on a deal within two to three weeks.

Commonly, people contact a private mortgage lender in Lexington when:

1. A remodeling job or restoration will help to offer their property for a higher price or get extra rent.

   Real example: one of our clients held a two-unit rental property. He already had a good deal of equity in the property and the rent generated steady cash flow. A number of select home enhancements would help him raise the cost of rent, but with a poor credit score of 520, it was highly probable that a bank would turn down his loan application. For that reason, the client got into contact with Read Rock Capital (Read Rock Capital) to execute a cash-out refinance which got him financing for 65% of the home's assessed value.

2. They've got numerous debts and prefer to consolidate them.

   Many people know how stressful it is to deal with multiple payments on a monthly basis. To put together a more workable situation, people combine all of their outstanding debts into a single loan with just one monthly payment.

3. They wish to take advantage of the equity within a current property or home to do another real estate project.

   One of our customers located in Hawaii owned a residence worth $1.2 million. When he was unable to secure a buyer for his house, he inked a lease-option-to-buy arrangement with an interested party. The rent amount was sufficient to cover his monthly mortgage payment, taxes and insurance obligations. The renter also gave $200k for a non-refundable advance payment as part of signing the 3-year lease contract. These sureties meant that he no longer had to be concerned about the home's future financial obligations, so when another promising real estate investment opportunity came up, he reached out to Read Rock Capital and obtained a private mortgage loan at 70% LTV. This let him pay an advance on the down payment for his next investment, and furthermore repay his current mortgage.

4. They want help to meet the balloon payment for the existing mortgage.

   If a borrower can't make a balloon payment due to unforeseen causes, he can try and refinance the loan with a different mortgage lender. A refinance will help the borrower hit the cut-off date for the balloon payment and steer clear of any consequences.

Hoping to connect with a private mortgage lender in Lexington to discuss financing programs for your upcoming investment? Complete the form or call us and let's discuss the property you have in mind.