Private real estate financing entails finding a short-term mortgage from a privately owned firm or individual with the intention to buy, perform upgrades on or refinance a home. Contrary to bank loans, Magnolia private mortgage loans are fast closing, easy qualifying and available to self-employed borrowers.

Meaning that regardless of whether you have a good credit score, you've still got a good chance of receiving private money for a real estate loan assuming that your real estate project is deemed to be profitable, you have ample capital to put towards the downpayment, you have proven yourself competent in the real estate market in the past, you have considerable equity contained in the property or you have a clear plan to pay back the balance of the loan. Additionally, Magnolia private real estate mortgages close fast to grant you financing right away, allowing you to close on a deal within 2 or 3 weeks.

Frequently, clients confer with Magnolia private mortgage lenders to supply capital for their real estate ventures when:

1. They need money to fix a house and sell it at a higher price point or to rent it out for more money.

   One example is a client who operated a 2-unit rental. He had enough equity available in the asset and the rent checks brought in regular monthly income. He sought to do some upgrades to the units to be able to keep his rents high, but a below average credit score of 520 meant that a bank would doubtless turn down his mortgage request. Right after he approached Read Rock Capital to obtain a mortgage, we were happy to do a cash-out refinance at 65% of the duplex's valuation.

2. They would like to combine all their outstanding debts into a single payment.

   Most people find it stressful to deal with multiple payments on a monthly basis. Due to this fact, many individuals borrow from a property's equity to combine their outstanding debts into one single manageable payment.

3. They wish to take advantage of the existing equity in their existing property or home to do a different project.

   By way of example, one of Island View's past borrowers located in Hawaii had a house appraised above one million bucks. His idea was to sell the house but it didn't work out and he ultimately was forced to be content with leasing the house, with the option to purchase it at a later time. The rent amount was more than enough to handle his regular mortgage payment, property taxes and homeowner's insurance obligations. In addition, he received a $200,000 non-refundable deposit for the three year lease agreement. With the help of this collateral to cover the home's foreseeable bills, he ran across another promising real estate investment opportunity and got into contact with Read Rock Capital for a private mortgage loan nearly 70% of the home's appraised value. This enabled him to make the deposit for his next investment, and furthermore pay down his present mortgage.

4. They have an existing mortgage and are not able to afford the pending balloon payment.

   If a borrower is not able to pay a balloon payment due to unforeseen factors, he can try and refinance the loan with another mortgage company. A refinance can help the borrower avoid missing the cut-off date for the balloon payment and prevent any penalties.

Looking for a private mortgage lender in Magnolia to fund your real estate investment? Complete the form or get in touch with us via phone and let's discuss your property or properties.