Private real estate financing gives assistance to real estate investors who want to purchase, remodel or refinance a property or home using a short-term mortgage loan from a private firm or an individual. Lowell private mortgage loans have many advantages — they close fast, are easy to qualify for and are also open to self-employed individuals.

This is good news for real estate investors since somebody with poor credit can qualify for private money for a real estate loan so long as he has a promising project, he has sufficient cash for a down payment, he has shown himself capable in prior real estate investments, and can show a preplanned exit strategy. In addition, Lowell private real estate mortgages close fast to ensure that you get financing right away, allowing you to close on a deal within 2-3 weeks.

Typically, investors get in touch with a private mortgage lender in Lowell when:

1. A rehab or restoration will help to market their property at a higher price or get significantly more rent.

   To illustrate, a past client owned a duplex. At the time, he retained a lot of equity available in the building and the rent payments generated steady income. Though some improvements to the place would have helped him command more rent, a bank would likely have turned down the loan application, because he had a credit score of only 520. Shortly after he got in contact with Read Rock Capital for a loan, we were glad to do a cash-out refinance at 65% of the property's valuation.

2. They wish to combine unpaid debts.

   Countless outstanding debts with a range of rates are often very overwhelming and hard to keep tabs on. In order to put together a more manageable situation, some people consolidate all their outstanding debts into one single mortgage loan with just one payment per month.

3. They wish to make use of the existing equity within their current home to do another real estate investment.

   One of Island View's customers located in Hawaii had a home worth over $1,000,000. Since it was difficult for him to get a purchaser for the house, he had an individual who was willing to lease it having the option to purchase it. The income that stemmed from the lease paid for his continuing mortgage payment, insurance, and taxes. The person furthermore agreed to pay him $200,000 for a downpayment for the three year contract. The signed agreement meant he no longer had to concern himself with the home's future expenses, and so when a new real estate opportunity showed up, he reached out to Read Rock Capital and obtained a private mortgage loan at 70% loan to value. Meaning that he could make a downpayment for his next investment, and also repay his present mortgage.

4. They already have a mortgage and are not able to afford the pending balloon payment.

   If an unanticipated mishap hinders someone from making his balloon payment due date, he can approach an alternative loan company to refinance. A refinance can help the person avoid missing the due date for the balloon payment and prevent any penalties.

Looking to meet a private mortgage lender in Lowell speak about loan programs for your upcoming project? Fill out the form or give us a call and let's discuss your property.