Private real estate financing helps investors purchase, fix up or refinance a property using a short-term loan from a private company or an individual. As opposed to loans from banks, New Bedford private mortgage loans close fast, are easy to qualify for and available to self-employed individuals.

Thus, while it's possible you don't have great credit, having a promising opportunity, a considerable downpayment, previous experience, and a good exit strategy are far more relevant when it comes to qualifying for private money for a real estate loan. Besides, if you are hoping for a fast closing, there are no better options than New Bedford private real estate mortgages.

Mostly, borrowers pay a visit to New Bedford private mortgage lenders to lend money for their real estate ventures when:

1. They want funds to fix a home and offer it for a higher price or to rent it out for more money.

   E.g. one of our clients had a twin-home / duplex. He'd already built up considerable equity in the asset and the rent was a routine income source. While several remodeling work to the place would have enabled him to ask for higher rent, a bank would most likely have turned down his loan request, because his credit score was down at 520. Consequently, the borrower contacted Read Rock Capital (Read Rock Capital) to execute a cash-out refinance which provided him financing for 65% of the duplex's market value.

2. They want to consolidate debts.

   Many of us find that it's stressful to take care of numerous payments each and every month. This is the reason many people decide to make the most of the equity in their house to consolidate each of their financial debts into just one private mortgage with a single payment per month.

3. They want to take advantage of their home's equity for another home purchase.

   One of Island View's borrowers in Hawaii had a property valued at $1.2 million. When he was unable to secure a buyer for his property, he agreed to a lease-option-to-buy contract with someone. The funds that stemmed from the rent took care of his monthly mortgage bill, insurance, and taxes. The renter furthermore consented to pay $200,000 in the form of a down payment for a 3-year lease agreement. These sureties meant that he no longer needed to be concerned with the property's future expenses, and thus, when a new investment opportunity surfaced, he reached out to Read Rock Capital and got a private mortgage loan at seventy percent loan to value. This enabled him to make the deposit for the new property, and at the same time pay down his present mortgage.

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

   A real estate investor who has a previous private mortgage loan and isn't able to afford the balloon payment because of a change of circumstances can apply for refinancing from another lending company. A cash-out refinance can help you pay the balloon payment and escape fines.

Interested in discussing financing alternatives with a private mortgage lender in New Bedford? Submit the form on this page or call us and let's talk about your project.