Private real estate financing means obtaining a short-term mortgage via a privately owned company or individual to be able to purchase, perform upgrades on or refinance a property or home. Madison private mortgage loans have many advantages — they are fast closing, easy qualifying and are also open to self-employed individuals.

That's why, even if you have bad credit, having a promising opportunity, a considerable down payment, past experience in real estate, and a good exit strategy are more important when it comes to qualifying for private money for a real estate loan. And having fast closings of 2 weeks, private real estate mortgages in Madison are the right alternative for real estate investors.

Most borrowers talk with Madison private mortgage lenders when:

1. They are in need of funds to renovate a property or home and put it up for sale at a much higher price or to up the lease amount for tenants.

   To illustrate, a past client had a twin-home / duplex. He already retained a considerable amount of equity available in the building and the rent payments generated steady cash flow. He wanted to do some renovation to the place to help keep his rents high, but a below average credit score of 520 meant a bank would undoubtedly turn down his loan application. Right after he contacted Read Rock Capital for financing, we were happy to do a cash-out refinance for 65% of the duplex's valuation.

2. They would like to combine personal debts.

   Numerous debts with a variety of rates are often too much to handle and difficult to keep tabs on. Due to this fact, many individuals borrow from a property's equity to combine each of their debts into just one manageable payment.

3. They wish to take advantage of the equity in their existing home to do an additional project.

   Here is an example. A customer located in Hawaii owned a house valued at $1.2M. When he failed to find a buyer for his home, he agreed to a lease-option-to-buy arrangement with an interested party. The rental agreement payouts made it possible to meet his existing mortgage, taxes and insurance. In addition, he was given a $200,000 non-refundable downpayment for the three year lease contract. With these sureties covering the home's expenses on a regular basis, he called Read Rock Capital to obtain a 70% loan-to-value private mortgage loan to help with his upcoming purchase of an investment property. The loan helped him afford a different investment property and in addition, repay his original mortgage.

4. They have a previous private loan and cannot pay the pending balloon payment.

   If someone can't pay a balloon payment as a result of unexpected causes, he can seek to refinance the loan with a new lender. A cash-out refinance will help you complete the balloon payment and evade consequences.

Wanting to make contact with a private mortgage lender in Madison to go over loan options for your next real estate investment? Enter your info into the contact form on this page or get in touch with us via phone to talk about the project you have in mind.