Private real estate financing means finding a short-term loan via a private business or individual in order to buy, perform improvements on or refinance a home or property. Contrary to loans from banks, Livingston private mortgage loans close fast, are easy to qualify for and accessible to self-employed borrowers.

That means that whether or not you have a good credit score, there is still a strong likelihood of receiving private money for a real estate loan provided that your real estate project is presumed to be profitable, you have adequate capital available for the downpayment, you have shown yourself capable in the real estate market previously, you have significant equity contained in the home or property or you have a clear-cut plan to pay back the loan. Combined with fast closings of fourteen days, private real estate mortgages in Livingston may very well be the ideal solution for real estate investors.

Most borrowers work with Livingston private mortgage lenders when:

1. They would like to update or repair the home to be able to offer it for sale at an increased price point or to get higher rents.

   E.g. one of our borrowers owned a duplex. He held an abundance of equity available in the house and the rent generated regular income each month. He desired to perform some improvements to the place to help maintain high rents, but a lower credit score of 520 meant that a bank would turn down his loan request. For that reason, the client got in touch with Read Rock Capital (Read Rock Capital) to execute a cash-out refinance which got him a loan for 65% of the home's market value.

2. They have numerous personal debts and wish to combine them.

   A lot of people think it is stressful to manage countless payments each and every month. To help put together a more manageable situation, some people merge their unsecured debts into only one line of credit with one monthly payment.

3. They wish to use their home's existing equity for another purchase.

   One of Island View's clients located in Hawaii owned a house valued at $1M. He wanted to sell the house but that didn't happen and he ultimately was forced to settle for leasing the home to someone, with an option to buy at a later time. The cash that came from the rental payments covered his ongoing mortgage payment, insurance, and taxes. Additionally, he received a $200k non-refundable downpayment for the three year agreement. With these sureties taking care of the property's expenses on an ongoing basis, he approached Read Rock Capital for a seventy percent LTV private mortgage loan to help with his subsequent investment. Meaning that he could make his down payment for the new investment, and also help with his present mortgage.

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

   A real estate investor who has a prior private mortgage loan and is not able to pay for the balloon payment thanks to a change of circumstances can apply for refinancing from a new lending company. Refinancing right before the due date helps you to meet the deadline for the balloon payment and avert any consequences associated with failing to make the balloon payment.

Hoping to make contact with a private mortgage lender in Livingston speak about funding alternatives for your next investment? Fill out the contact form or call us to talk about your property.