Private real estate financing helps investors purchase, renovate or refinance a home utilizing a short-term mortgage loan from a privately owned firm or an individual. Melbourne private mortgage loans have many advantages — they are fast closing, easy qualifying and additionally, are offered to self-employed individuals.

So in case you have poor credit, having a real estate opportunity showing good potential, a sizeable downpayment, past experience, and a good exit strategy are far more important in regards to being approved for private money for a real estate loan. Furthermore, if you are looking for a fast closing, you will not find many options better than Melbourne private real estate mortgages.

Most borrowers speak with Melbourne private mortgage lenders when:

1. A remodeling job or update will make it possible to sell the home for a higher price point or get significantly more rent.

   For example, we had a customer who owned a two-unit rental. He'd already built up ample equity available in the property and the rent payments was a recurring revenue stream. Some choice home enhancements would undoubtedly allow him to bump up his rental prices, but having a bad credit score of 520, it was highly probable that a bank would turn down the loan request. So he turned to Read Rock Capital to get a cash-out refinance and received financing at 65% LTV.

2. They need to merge all their outstanding debts into one single loan.

   Numerous unsecured debts with varying interest rates are incredibly overwhelming and challenging to keep tabs on. To put together a more manageable situation, some people consolidate each of their financial debts into an individual loan with just one payment per month.

3. They wish to capitalize on the existing equity within a current property or home to work on an additional real estate project.

   For example, a homeowner located in Hawaii had a house valued at $1,200,000. When he was not able to secure a buyer for the house, he agreed to a lease-option-to-buy contract with an interested party. The lease payments made it possible to meet his existing mortgage expenses, taxes and homeowner's insurance. The renter additionally gave $200k for a non-refundable downpayment as he signed the 3 year lease agreement. These assurances meant he no longer needed to be concerned with the property's ongoing financial obligations, and as a result, when a new real estate opportunity surfaced, he came to Read Rock Capital and got a private mortgage loan at 70% loan to value. Meaning that he was able to make his deposit for the new investment, and also help with his present mortgage.

4. They have a previous private loan and are not able to afford the looming balloon payment.

   A real estate investor who already has an existing private mortgage loan and is not able to afford the balloon payment caused by a change in circumstances can submit an application for refinancing from another lender. A refinance will help the borrower hit the due date for the balloon payment and prevent any penalties.

Hoping to discuss mortgage alternatives with a private mortgage lender in Melbourne? Submit the contact form on this page or give us a call to talk about your property or properties.