Numerous real estate investors turn to private real estate financing to pay for a new home or property, or renovate or refinance one they already own. Whereas traditional lending institutions, for example, banks have an extended, drawn out application process and in all likelihood will think twice about loaning money to a self-employed borrower, private mortgage loans in Monroe close fast and have minimal eligibility criteria.

That means that whether or not you have a good credit score, there is still a strong likelihood of getting private money for a real estate loan as long as your undertaking is presumed to be profitable, you have sufficient capital available for the down payment, you have shown yourself capable in past real estate ventures, you have significant equity contained in the home or you have a clear plan to pay back the balance of the loan. And with fast closings of just fourteen days, private real estate mortgages in Monroe may very well be the perfect alternative for real estate investors.

Most real estate investors use Monroe private mortgage lenders when:

1. A remodeling job or renovation can allow them to offer the home for a much higher price point or charge additional rent.

   For instance, there was a customer who owned a two-unit rental. At the time, he retained a lot of equity in the property and the rent delivered steady cash flow. He wanted to complete some modifications to the units so that he could keep his rents high, but a below average credit score of 520 meant that a bank would undoubtedly turn down his loan application. And so he came to Read Rock Capital to obtain a cash-out refinance and received financing at 65% LTV.

2. They're stuck with multiple debts and wish to combine them.

   A lot of people think it is stressful to manage multiple payments every month. In order to make the situation more reasonable, some people combine each of their financial debts into one single line of credit with one monthly payment.

3. They want to take advantage of their property's existing equity for another real estate deal.

   For instance, one of our previous borrowers in Hawaii had a home appraised at more than one million dollars. When he was unable to find a buyer for the home, he entered into a lease-option-to-buy arrangement with somebody. The funds that stemmed from the lease contract took care of his monthly mortgage payment, home owner's insurance, and property taxes. He also received a $200k non-refundable advance payment for the three year lease agreement. With the help of these sureties to pay for the property's foreseeable expenses, he came across a new real estate investment opportunity and contacted Read Rock Capital for a private mortgage loan close to seventy percent of the home's valuation. Meaning that he was able to make a downpayment for the new property, and also repay his existing mortgage.

4. They have an existing mortgage and can't afford the pending balloon payment.

   If an unforeseen incident prevents a borrower from making his balloon payment deadline, he can approach another mortgage company to refinance. A cash-out refinance can help you pay the balloon payment and escape consequences.

Are you searching for a private mortgage lender in Monroe to fund your real estate investment? Fill out the contact form on this page or get in touch with us via phone to talk about your property.