Private real estate financing involves finding a short-term loan via a private business or individual in order to buy, perform upgrades on or refinance a property or home. Unlike loans from banks, Meridian private mortgage loans close fast, are easy to qualify for and available to self-employed individuals.

Which means that irrespective of the caliber of your credit score, there is still a strong likelihood of getting private money for a real estate loan so long as your undertaking is deemed to be profitable, you have adequate money reserved for the downpayment, you have proven yourself capable in the real estate market previously, you have substantial equity in the property or you have a clear plan to pay back the balance of the loan. And having fast closings of just fourteen days, private real estate mortgages in Meridian may very well be the perfect choice for real estate investors.

Most individuals depend on Meridian private mortgage lenders when:

1. A remodeling job or restoration can allow them to sell the home at a higher price point or fetch additional rent.

   For example, we had a client who owned a 2-unit rental property. He held enough equity available in the building and the rent checks brought in regular monthly income. A number of select home enhancements would undoubtedly allow him to boost his rental prices, but since he had a lower credit score of 520, it was extremely likely for a bank to turn down his mortgage request. Shortly after he contacted Read Rock Capital to obtain a mortgage, we were happy to do a cash-out refinance for 65% of the home's value.

2. They would like to merge their financial debts into a single payment.

   Countless outstanding debts with different lending rates can be very overwhelming and tough to manage. On that basis, lots of people do a loan from their home's equity to consolidate their financial debts into a single manageable payment.

3. They wish to utilize their house's existing equity for some other purchase.

   By way of example, one of our past customers in Hawaii had a home appraised at over one million bucks. Since it was difficult for him to secure an interested party for the property, he had found somebody who was ready to lease it with the option to purchase it. The rental agreement payments made it possible to meet his current mortgage, taxes and insurance. The tenant also went ahead and paid two hundred thousand dollars as an advance payment for a three year agreement. Using these assurances to take care of the home's financial obligations on a recurring basis, he called Read Rock Capital to get a 70% loan-to-value private mortgage loan for his subsequent real estate investment. This allowed him to pay an advance on the downpayment for his next investment, and also pay down his existing mortgage.

4. They need help to meet the balloon payment for the existing mortgage.

   A real estate investor who already has an existing private mortgage loan and is not able to pay for the balloon payment as a result of a change in circumstances can apply for refinancing from an alternative lender. Refinancing right before the due date allows the borrower to make the due date for the balloon payment and avoid penalties associated with failing to make the balloon payment.

Hoping to discuss loan programs with a private mortgage lender in Meridian? Enter your info into the form or call us to talk about the property you have in mind.