Private real estate financing gives assistance to investors who want to buy, fix up or refinance a property utilizing a short-term mortgage loan from a private business or an individual. Litchfield private mortgage loans have many advantages — they close fast, are easy to qualify for and are also open to self-employed borrowers.

It means that irrespective of the level of your credit score, there is still a high likelihood of qualifying for private money for a real estate loan assuming that your investment is presumed to be profitable, you have adequate capital to use for the down payment, you have proven yourself competent in the real estate market previously, you have considerable equity in the home or property or you have a well-defined plan to pay back the loan. Furthermore, if you need a fast closing, there are no better options than Litchfield private real estate mortgages.

Mostly, clients talk to Litchfield private mortgage lenders to fund their real estate activities when:

1. They're in search of capital to fix up a property or home and put it up for sale at a higher price point or to up the lease amount for renters.

   Real example: one of our borrowers held a two-family rental property. He'd already built up considerable equity available in the building and the rent payments was a recurring source of income. A few choice home renovations would undoubtedly allow him to raise the cost of rent, but because of a bad credit score of 520, it was extremely certain that a bank would turn down the loan application. Consequently, the borrower got in touch with Read Rock Capital (Read Rock Capital) to do a cash-out refinance that in turn provided him a loan for 65% of the property's market value.

2. They have multiple debts and want to consolidate them.

   Multiple debts with a range of lending rates are often rather overwhelming and tough to keep track of. This is the reason some people opt to utilize the equity available in their house to consolidate each of their debts into a single private loan which has a single payment per month.

3. They would like to unlock the equity in one house and buy another one.

   To provide an example, a customer located in Hawaii owned his residence which was appraised at $1.2M. When he could not procure a buyer for the house, he agreed to a lease-option-to-buy deal with an interested party. The lease payouts served to meet his existing mortgage, taxes and homeowner's insurance. The tenant furthermore agreed to pay him 200k as a down payment for the three year lease agreement. The signed agreement meant that he no longer needed to be concerned with the home's future financial obligations, and so when another great investment opportunity surfaced, he reached out to Read Rock Capital and obtained a private mortgage loan at 70% loan to value. This allowed him to make the downpayment for his next investment, and also helped with his present mortgage.

4. They want assistance to meet the balloon payment for the current loan.

   A person who invests in real estate and currently has an existing private mortgage and is not able to afford the balloon payment on account of a change in circumstances can fill out an application for refinancing from a new company. Refinancing right before the due date helps the borrower to make the deadline for the balloon payment and stay clear of fines related to failing to make the balloon payment.

Do you need a private mortgage lender in Litchfield to fund your investment purchase? Enter your info into the form on this page or get in touch with us via phone to discuss the property or properties you have in mind.