Private real estate financing gives assistance to investors who want to pay for, renovate or refinance a home or property using a short-term mortgage from a private company or an individual. Unlike loans from banks, Ludlow private mortgage loans close fast, are easy to qualify for and offered to self-employed applicants.

That's good news for real estate investors since even a person with lousy credit can obtain a private money for a real estate loan provided that he has a promising deal, he has plenty of money for a down payment, he has proven himself capable in earlier real estate investments, and has a plan for an exit strategy. In addition, the fast closing Ludlow private real estate mortgages give you financing without delay, helping you close a deal within 2-3 weeks.

Ordinarily, clients confer with Ludlow private mortgage lenders to provide capital for their real estate ventures when:

1. They wish to renovate or make repairs to the home and property to allow them to offer it for sale at a much higher price point or to ask for higher rents.

   For instance, we had this customer who owned a 2-family rental. He already retained a significant amount of equity in the property and the rent checks delivered steady income. Some choice home improvements would undoubtedly help him raise his rental prices, but having a low credit score of 520, it was very certain that a bank would turn down the mortgage application. Right after he got in contact with Read Rock Capital to get financing, we were glad to complete a cash-out refinance for 65% of the home's appraised value.

2. They need to consolidate their debts.

   Many of us find that it's stressful to take care of numerous payments every month. To successfully make the situation more reasonable, some people combine all of their financial debts into just one loan with just one payment per month.

3. They would like to utilize the equity in an existing property to do an additional project.

   As an illustration, a client located in Hawaii owned a property valued at $1.2M. His idea was to sell the house but it did not work out and he eventually was forced to be satisfied with leasing the house to someone, with the option to buy at a future date. The amount of rent was adequate to take care of his regular mortgage payment, property taxes and cost of homeowner's insurance. Additionally, he received a $200k non-refundable down payment for the three year lease. The signed agreement meant he no longer had to be concerned about the home's future financial obligations, and thus, when another great real estate investment opportunity showed up, he found Read Rock Capital and received a private mortgage loan at seventy percent loan to value. This allowed him to make the downpayment for his next property, and at the same time pay down his existing mortgage.

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

   If an unexpected event stops someone from hitting his balloon payment due date, he could find another company to refinance. Refinancing before the due date helps the borrower to meet the deadline for the balloon payment and avert any penalty charges associated with missing the balloon payment.

Looking to discuss financing options with a private mortgage lender in Ludlow? Submit the contact form on this page or give us a call and let's talk about your property or properties.