Many real estate investors rely upon private real estate financing to purchase a new home, or update or refinance one they already have. Whereas typical lending institutions such as banks have a prolonged, time consuming application process and are more than likely to be reluctant to give money to a self-employed customer, private mortgage loans in Madison Heights close fast and have minimal eligibility requirements.

That means that even if you do not have a very good credit score, there is still a strong likelihood of receiving private money for a real estate loan provided that your project is presumed to be profitable, you have sufficient money to use for the downpayment, you have proven yourself competent in real estate in the past, you have sizeable equity in the property or you have a clear-cut plan to pay back the balance of the loan. Combined with fast closings of just fourteen days, private real estate mortgages in Madison Heights are an ideal solution for serious real estate investors.

Most real estate professionals talk with Madison Heights private mortgage lenders when:

1. A remodeling job or restoration can help to offer the house for a higher price or get extra rent.

   E.g. one of our customers had a duplex. He held plenty of equity in the property and the rent checks brought in regular income each month. Some select home improvements would allow him to boost the cost of rent, but because of a below average credit score of 520, it was highly certain that a bank would turn down the loan application. When he got in contact with Read Rock Capital to obtain a mortgage, we were pleased to complete a cash-out refinance at 65% of the property's appraised value.

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

   Most people find that it's stressful to manage numerous payments each and every month. Because of this, numerous people decide to make the most of the equity available in their house to merge each of their outstanding debts into just one private loan with a lone payment per month.

3. They would like to take advantage of the equity within their existing house to work on an additional real estate investment.

   One of our customers in Hawaii had a property worth $1M. His plans to sell the house did not work out and he ultimately was forced to be satisfied with leasing the house to an interested party, with an option to purchase it down the road. The lease payouts helped him meet his existing mortgage payment, taxes and insurance. The tenant furthermore agreed to pay 200k as a downpayment for a 3-year lease. With these sureties handling the home's bills on an ongoing basis, he phoned Read Rock Capital to obtain a seventy percent LTV private mortgage loan for his subsequent real estate investment. This not only gave him enough capital to put towards a downpayment or his next property, but also helped him repay the current mortgage.

4. The balloon payment for a prior loan is owed soon and they are unable to handle it.

   If someone cannot make a balloon payment resulting from unanticipated causes, he can try to refinance his loan with a new loan company. Refinancing right before the term date helps the borrower to make the due date for the balloon payment and avert any consequences associated with failing to pay the balloon payment.

Looking to meet a private mortgage lender in Madison Heights to go over loan options for your upcoming investment? Submit the contact form on this page or give us a call to discuss your property or properties.