Private real estate financing involves obtaining a short-term mortgage through a private business or individual with the intention to buy, perform improvements on or refinance a property or home. As opposed to loans from banks, Manhattan private mortgage loans are fast closing, have minimal eligibility criteria and obtainable by self-employed borrowers.

That's great news for real estate investors because even somebody with poor credit can qualify for private money for a real estate loan as long as he has a project that shows strong potential, he has sufficient cash for a downpayment, he has demonstrated himself able in real estate, and has a good exit strategy. Besides, if you would like a fast closing, you will not come across many options better than Manhattan private real estate mortgages.

In most cases, clients consult Manhattan private mortgage lenders to loan money for their real estate ventures when:

1. They want to renovate or fix up the home to be able to offer it at a higher price point or to fetch higher rents.

   For example, there was this borrower with a 2-unit rental property. He had plenty of equity available in the property and the rent brought in regular monthly income. A few choice home improvements would allow him to raise his rents, but with a low credit score of 520, it was extremely likely that a bank would turn down his loan request. Right after he approached Read Rock Capital to obtain a loan, we were glad to complete a cash-out refinance for 65% of the home's appraised value.

2. They wish to combine all their unsecured debts into one payment.

   Most people find it stressful to make numerous payments each and every month. Due to this, some individuals get a loan against their home equity to combine all of their outstanding debts into a single loan payment.

3. They prefer to employ the existing equity in one property or home and use it to invest in another one.

   By way of example, one of our past borrowers in Hawaii had a property appraised at more than a million dollars. When he was unable to procure a buyer for the house, he signed a lease-option-to-buy deal with somebody. The lease payouts helped him meet his existing mortgage expenses, taxes and insurance. The person also went ahead and paid him two hundred thousand dollars as a downpayment for the three year lease agreement. With the help of these sureties to take care of the property's foreseeable financial obligations, he came across another great real estate opportunity and got into contact with Read Rock Capital for a private mortgage loan nearly 70% of the home's valuation. This gave him more than enough cash to put towards a down payment or his next property, but also made it easier for him to pay down the existing mortgage.

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

   If an unanticipated mishap stops a borrower from meeting his balloon payment due date, he can find a different mortgage company to refinance. Refinancing before the due date helps the borrower to meet the deadline for the balloon payment and avert any fines related to failing to make the balloon payment.

Looking to meet a private mortgage lender in Manhattan speak about financing programs for your upcoming project? Complete the form or get in touch with us via phone and let's discuss the property you have in mind.