Private real estate financing can help investors purchase, renovate or refinance a property or home utilizing a short-term mortgage from a privately owned company or an individual. As opposed to bank loans, Merrimack private mortgage loans close fast, are easy to qualify for and available to self-employed individuals.

Which means that even if you do not have a great credit score, you still have a high probability of obtaining private money for a real estate loan provided that your undertaking is deemed to be profitable, you have sufficient capital to put towards the downpayment, you have proven yourself capable in real estate previously, you have substantial equity in the home or you have a clear plan to pay off the loan. And with fast closings of just fourteen days, private real estate mortgages in Merrimack are the right solution for real estate investors.

Primarily, customers count on Merrimack private mortgage lenders to supply capital for their endeavors when:

1. They want funds to repair a property or home and offer it for sale at a much higher price point or to up the lease amount for tenants.

   By way of example, there was this borrower with a two-family rental property. He held enough equity available in the property and the rent checks brought in routine income each month. Although a few upgrades to the units would have helped him collect higher rent, a bank would likely have turned down the mortgage request, considering that his credit score was merely 520. After he got into contact with Read Rock Capital to get a loan, we were glad to do a cash-out refinance at 65% of the house's valuation.

2. They wish to combine all of their debts into one single loan.

   Countless outstanding debts with a range of interest rates are often too much to handle and tough to manage. This is the reason many people choose to take advantage of the equity available in their residence to merge each of their unsecured debts into a single mortgage loan which has a single monthly payment.

3. They wish to capitalize on the equity available in a current home to work on another real estate investment.

   For example, a borrower located in Hawaii had his residence which was valued at $1.2M. When he could not procure a buyer for his house, he inked a lease-option-to-buy arrangement with an interested party. The rent amount was enough to handle his monthly mortgage payment, taxes and insurance payments. The renter furthermore went ahead and paid him $200,000 in the form of an advance payment for a 3-year contract. Using these sureties to take care of the home's financial obligations on a regular basis, he called Read Rock Capital for a 70% LTV private mortgage loan for his subsequent investment. The financing helped him finance a new investment property and also pay off his original mortgage.

4. They already have a loan and can't pay the looming balloon payment.

   If an unforeseen mishap stops a person from making his balloon payment due date, he can approach a new mortgage company to refinance. Refinancing right before the due date enables the borrower to make the due date for the balloon payment and stay clear of fees and penalties related to failing to pay the balloon payment.

Trying to find a private mortgage lender in Merrimack to finance your real estate investment? Enter your info into the form on this page or give us a call to discuss your project.