Numerous real estate investors depend on private real estate financing to pay for a new home, or remodel or refinance an existing one. In contrast to loans from banks, Mount Airy private mortgage loans are fast closing, easy qualifying and offered to self-employed borrowers.

This is good news for real estate investors considering that even a person with poor credit can opt for private money for a real estate loan assuming that he has a promising deal, he has sufficient money for a downpayment, he has proven himself competent in past real estate ventures, and he has a sensible exit strategy. And having fast closings of just two weeks, private real estate mortgages in Mount Airy may very well be the ideal alternative for ambitious real estate investors.

Most individuals depend on Mount Airy private mortgage lenders when:

1. A rehab or renovation can help to offer the house at a much higher price or bring in more rent.

   As an example, a past investor had a duplex. He already retained a lot of equity in the building and the rent brought in a steady revenue. He sought to complete some improvements to the place to help keep his rents high, but a low credit score of 520 meant a bank would turn down his loan request. And so he turned to Read Rock Capital to get a cash-out refinance and got a loan at 65% LTV.

2. They need to combine their personal debts.

   Countless unsecured debts with a range of lending rates are too much to handle and challenging to manage. For this reason, many people make the decision to utilize the equity available in their house to merge all of their unsecured debts into just one private mortgage which has a lone payment per month.

3. They wish to use their home's equity for an additional real estate deal.

   To provide an example, a customer located in Hawaii owned his residence which was appraised at $1,200,000. When he failed to secure a buyer for the home, he agreed to a lease-option-to-buy contract with someone. The rental agreement payments served to meet his current mortgage, property taxes and homeowner's insurance. In addition, he was given a $200,000 non-refundable deposit for the three year lease contract. These assurances meant that he no longer had to worry about the property's ongoing financial obligations, and thus, when another great real estate opportunity surfaced, he found Read Rock Capital and obtained a private mortgage loan at 70% LTV. This gave him plenty of cash to put towards a deposit on his next investment, but additionally made it easier for him to deal with the existing mortgage.

4. They have a previous loan and are unable to pay the pending balloon payment.

   If someone is unable to pay a balloon payment resulting from unexpected factors, he can attempt to refinance the loan with another mortgage lender. Refinancing prior to the due date helps the borrower to meet the due date for the balloon payment and avert any fees and penalties in connection with failing to pay the balloon payment.

Trying to find a private mortgage lender in Mount Airy to finance your real estate investment? Submit the contact form on this page or get in touch with us via phone to discuss the project you have in mind.