Many real estate investors use private real estate financing to purchase a new property, or rehab or refinance one they already have. Lynchburg private mortgage loans have many advantages — they are fast closing, easy qualifying and additionally, are available to self-employed individuals.

Thus, even if you don't have very good credit, having a real estate opportunity showing promise for profits, a considerable downpayment, prior real estate experience, and a clear-cut exit strategy are more relevant in terms of qualifying for private money for a real estate loan. And having fast closings of 2 weeks, private real estate mortgages in Lynchburg may very well be the perfect solution for serious real estate investors.

Normally, clients reach out to a private mortgage lender in Lynchburg when:

1. They are in need of funds to fix a house and offer it for sale for a much higher price or to up the lease amount for tenants.

   To illustrate, a past borrower had a twin-home / duplex. He had enough equity in the property and the rent checks generated routine income each month. Some choice home enhancements would allow him to raise his rents, but since he had a low credit score of 520, it was extremely likely for a bank to turn down the loan application. And so he came to Read Rock Capital for a cash-out refinance and acquired financing at 65% LTV.

2. They wish to merge all their financial debts into one loan.

   A lot of people know how stressful it is to deal with numerous payments each month. To help make the situation more reasonable, some people combine their outstanding debts into a single mortgage loan with one monthly payment.

3. They would like to capitalize on the equity available in an existing home to work on another project.

   For example, a client located in Hawaii owned his residence which was appraised at $1,200,000. When he could not procure a buyer for the house, he entered into a lease-option-to-buy deal with someone. The revenue that came from the rent took care of his regular mortgage expenses, insurance, and property taxes. The person furthermore consented to pay two hundred thousand dollars in the form of an advance payment for a 3 year contract. The signed agreement meant he no longer had to be concerned with the home's future expenses, so when another promising real estate opportunity came up, he came to Read Rock Capital and obtained a private mortgage loan at 70% loan to value. This let him make the deposit for the new investment, and also helped with his current mortgage.

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

   A real estate investor who has a prior private mortgage and isn't able to pay for the balloon payment thanks to a change in circumstances can apply for refinancing from another loan company. A cash-out refinance can help you complete the balloon payment and evade penalty.

Interested in discussing loan options with a private mortgage lender in Lynchburg? Fill out the form or give us a call to talk about your property.