Private real estate financing can help investors purchase, renovate or refinance a home or property using a short-term mortgage loan from a privately owned company or an individual. While conventional lenders, for example, banks have a prolonged, time consuming application process and are likely to hesitate to lend money to a self-employed individual, private mortgage loans in Lone Tree close fast and have minimal eligibility criteria.

Which means that even if you don't have a very good credit score, there is still a strong likelihood of getting private money for a real estate loan provided that your real estate project is viewed to be profitable, you have enough capital to use for the down payment, you have demonstrated yourself capable in past real estate ventures, you have significant equity contained in the property or home or you have an intelligible plan to take care of the loan. Combined with fast closings of just 2 weeks, private real estate mortgages in Lone Tree may very well be the perfect choice for ambitious real estate investors.

Most often, borrowers rely upon Lone Tree private mortgage lenders to finance their real estate activities when:

1. They wish to remodel or repair the home and property to be able to offer it at a much higher price or to charge higher rents.

   To illustrate, one of our borrowers had a twin-home / duplex. He'd already built adequate equity in the property and the rent was a regular source of income. While some enhancements to the property could have enabled him to charge more rent, a bank would undoubtedly have turned down the mortgage request, given that his credit score was only 520. When he got into contact with Read Rock Capital for a loan, we were happy to complete a cash-out refinance for 65% of the house's market value.

2. They want to merge their unsecured debts into one loan.

   Many people know how stressful it is to manage numerous payments each month. To successfully put together a more manageable situation, people consolidate all of their outstanding debts into only one loan with just one payment per month.

3. They want to allocate the equity in one home and use it to acquire a different one.

   As one example, a client in Hawaii owned a house valued at $1.2M. When he could not secure a buyer for his home, he signed a lease-option-to-buy arrangement with somebody. The funds that stemmed from the rent took care of his ongoing mortgage expenses, insurance, and taxes. The renter additionally included $200k in the form of a non-refundable downpayment when he signed the 3 year lease. Having these assurances to take care of the home's financial obligations on a regular basis, he approached Read Rock Capital to obtain a seventy percent LTV private mortgage loan to help with his upcoming purchase of an investment property. Meaning that he could make a deposit for the new property, and also repay his current mortgage.

4. They already have a preexisting private loan and are unable to afford the looming balloon payment.

   A real estate investor who currently has an existing private mortgage loan and is not able to afford the balloon payment as a result of a change in circumstances can apply for refinancing from a new lending company. Refinancing prior to the due date helps the borrower to make the due date for the balloon payment and avoid fees and penalties in connection with failing to make the balloon payment.

Do you need a private mortgage lender in Lone Tree to help you afford your investment purchase? Submit the form on this page or call us to talk about your property.