Private real estate financing involves getting a short-term mortgage via a privately owned firm or individual as a way to buy, perform improvements on or refinance a property. In contrast to loans from banks, New Orleans private mortgage loans close fast, are easy to qualify for and offered to self-employed customers.

That is good news for real estate investors since even a person with poor credit can apply for private money for a real estate loan as long as he has a promising deal, he has enough cash for a down payment, he has demonstrated himself able in prior real estate ventures, and has a good exit strategy. What's more, the fast closing New Orleans private real estate mortgages ensure that you get funding right away, helping you close within weeks.

Most real estate investors use New Orleans private mortgage lenders when:

1. They need to update or repair the house so they can offer it for sale at an increased price point or to fetch higher monthly rental fees.

   E.g. a past client owned a twin-home / duplex. He already had plenty of equity available in the house and the monthly rent generated steady income. Though several enhancements to the place might have helped him collect more rent, a bank would definitely have turned down his mortgage request, since he had a credit score of merely 520. When he got in contact with Read Rock Capital to obtain a loan, we were pleased to do a cash-out refinance for 65% of the house's valuation.

2. They want to combine each of their debts into just one payment.

   Multiple unsecured debts with a range of interest rates are incredibly overwhelming and challenging to keep track of. To successfully make the situation more manageable, people combine their unsecured debts into an individual loan with just one payment per month.

3. They prefer to use their property's existing equity for a different real estate deal.

   As an example, one of our past borrowers in Hawaii had a house appraised in excess of one million dollars. Since it was difficult for him to get a purchaser for the house, he had identified a person that was open to lease it having an option to purchase it. The money that came from the rent paid for his ongoing mortgage payment, insurance, and taxes. The tenant also put two hundred thousand dollars for a non-refundable down payment when he signed the three year agreement. With the help of this collateral to cover the property's foreseeable bills, he ran across another promising real estate opportunity and approached Read Rock Capital to obtain a private mortgage loan around seventy percent of the home's appraised value. This allowed him to pay an advance on the deposit for his next investment, and at the same time pay down his current mortgage.

4. The balloon payment for a prior loan is owed soon and they are unable to afford it.

   If an unforeseen incident hinders someone from making his balloon payment deadline, he could seek out another loan company to refinance. A refinance will help the person hit the cut-off date for the balloon payment and prevent any penalties.

Want to discuss mortgage options with a private mortgage lender in New Orleans? Complete the form on this page or call us and let's talk about your property.