Private real estate financing means getting a short-term loan from a private business or individual person in order to purchase, carry out improvements on or refinance a home or property. Contrary to bank loans, Mount Prospect private mortgage loans are fast closing, easy qualifying and obtainable by self-employed applicants.

That's why, while you might have lousy credit, having a real estate opportunity with good potential, a sizeable downpayment, prior real estate experience, and a clear-cut exit strategy are more important when qualifying for private money for a real estate loan. In addition, the fast closing Mount Prospect private real estate mortgages grant you financing right away, letting you close within weeks.

Commonly, investors reach out to a private mortgage lender in Mount Prospect when:

1. They need to update or make repairs to the property so they can sell it at a higher price or to ask for higher rents.

   E.g. one of our customers had a twin-home / duplex. He held an abundance of equity in the property and the rent checks generated regular income each month. Although some enhancements to the property could have enabled him to ask for more rent, a bank would undoubtedly have turned down his loan application, considering that his credit score was merely 520. When he got in contact with Read Rock Capital for financing, we were happy to complete a cash-out refinance for 65% of the house's market value.

2. They wish to merge their debts into just one loan.

   Many people find it stressful to make multiple payments on a monthly basis. In order to set up a more reasonable situation, some people consolidate all their debts into only one mortgage loan with just one payment per month.

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

   By way of example, one of Island View's clients located in Hawaii had a place appraised in excess of a million dollars. Since it was difficult for him to get an interested party for the home, he had found someone that was ready to lease it having the option to buy. The rent amount was sufficient to take care of his monthly mortgage payment, taxes and cost of homeowner's insurance. The renter furthermore agreed to pay two hundred thousand dollars for a deposit for a three year lease. With these sureties covering the home's monthly payments on a recurring basis, he called Read Rock Capital for a 70% LTV private mortgage loan for his upcoming real estate investment. This means that he could make his deposit for his next property, and also repay his existing mortgage.

4. They have a previous private loan and cannot pay the pending balloon payment.

   If a borrower is not able to pay a balloon payment thanks to unforeseen factors, he can attempt to refinance the loan with another loan company. A cash-out refinance will help the borrower pay the balloon payment and escape fines.

Searching for a private mortgage lender in Mount Prospect to help you afford your investment purchase? Enter your info into the form on this page or call us and let's talk about your project.