Numerous real estate investors rely on private real estate financing to acquire a new property or home, or update or refinance one they already have. As opposed to loans from banks, Madisonville private mortgage loans close fast, are easy to qualify for and available to self-employed applicants.

This means that irrespective of the caliber of your credit score, there is still a strong likelihood of qualifying for private money for a real estate loan as long as your undertaking is presumed to be profitable, you have adequate capital available for the downpayment, you have demonstrated yourself capable in prior real estate investments, you have sizeable equity contained in the home or you have a clear-cut plan to pay back the loan. Furthermore, if you want a fast closing, there are no better options than Madisonville private real estate mortgages.

Primarily, borrowers ask Madisonville private mortgage lenders to loan money for their real estate ventures when:

1. They need capital to remodel a property and sell it at a much higher price or to rent it out for more money.

   Real example: one of our clients held a 2-unit rental property. He held plenty of equity in the house and the rent generated routine income each month. A few select home enhancements would help him boost his rents, but since he had a low credit score of 520, it was highly probable for a bank to turn down the mortgage request. Accordingly, he came to Read Rock Capital to get a cash-out refinance and received financing at 65% LTV.

2. They wish to combine each of their financial debts into just one payment.

   The majority of people find it stressful to take care of multiple payments each and every month. Because of this, many people opt to utilize the equity in their home to consolidate all of their debts into just one mortgage with a lone monthly payment.

3. They want to capitalize on the equity within their existing home to work on an additional real estate investment.

   For example, a customer located in Hawaii owned a property valued at $1.2M. When he was not able to find a buyer for his house, he signed a lease-option-to-buy deal with somebody. The lease income served to meet his current mortgage expenses, taxes and homeowner's insurance. Additionally, he received a $200k non-refundable deposit for the 3 year lease contract. Using these assurances to take care of the home's expenses on an ongoing basis, he approached Read Rock Capital to get a seventy percent loan-to-value private mortgage loan to help with his subsequent purchase of an investment property. This let him make the deposit for his next investment, and at the same time pay down his present mortgage.

4. They already have an existing loan and are unable to afford the looming balloon payment.

   A person who invests in real estate and has a previous private mortgage and is not able to pay for the balloon payment as a result of a change of circumstances can apply for refinancing from another lending company. A refinance can help the borrower hit the cut-off date for the balloon payment and avoid penalty charges.

Hoping to discuss your financing plans with a private mortgage lender in Madisonville? Fill out the form or give us a call and let's talk about your property.