Private real estate financing helps investors purchase, fix up or refinance a property or home using a short-term mortgage from a private company or an individual. While standard lenders such as banks will require an extended, time consuming application process and in all likelihood will be reluctant to offer money to a self-employed client, private mortgage loans in Lexington close fast and are easy to qualify for.

It means that even if you do not have a great credit score, there is still a high likelihood of receiving private money for a real estate loan provided that your investment is regarded as profitable, you have enough money available for the downpayment, you have proven yourself competent in the real estate market previously, you have significant equity contained in the property or you have a clear-cut plan to pay back the loan. In addition, Lexington private real estate mortgages close fast to supply you with financing without delay, allowing you to close on a deal within a few short weeks.

Most real estate professionals depend on Lexington private mortgage lenders when:

1. They would like to remodel or fix up the property to allow them to offer it at an increased price or to ask for higher monthly rental fees.

   As an example, a past client had a twin-home / duplex. At the time, he had a significant amount of equity available in the house and the rent checks generated steady income. Though a few enhancements to the units might have helped him charge higher rent, a bank would definitely have turned down his mortgage request, considering that he had a credit score of a mere 520. Accordingly, he came to Read Rock Capital to get a cash-out refinance and got financing at 65% LTV.

2. They would like to consolidate their financial debts.

   A lot of people know how stressful it is to manage numerous payments each and every month. Due to this, numerous people borrow against their home's equity to consolidate each of their debts into one single loan payment.

3. They prefer to unlock their equity in one property and invest in another one.

   By way of example, one of Island View's borrowers located in Hawaii had a place appraised at more than one million dollars. When he was not able to procure a buyer for the home, he entered into a lease-option-to-buy deal with someone. The revenue that stemmed from the lease covered his ongoing mortgage payment, insurance, and taxes. The person furthermore went ahead and paid two hundred thousand dollars as a deposit for a 3 year lease agreement. With these sureties handling the home's bills on an ongoing basis, he phoned Read Rock Capital to obtain a 70% LTV private mortgage loan to aid in his upcoming investment. Meaning that he was able to make his down payment for the new investment, and also help with his existing mortgage.

4. The balloon payment for their current private mortgage is owed soon and they can't afford it.

   If an unexpected event prevents someone from meeting his balloon payment due date, he can approach an alternative lender to refinance. A refinance will help the person hit the cut-off date for the balloon payment and prevent any fees and penalties.

Looking to make contact with a private mortgage lender in Lexington to go over funding alternatives for your next real estate investment? Complete the contact form on this page or get in touch with us via phone and let's talk about the project you have in mind.