Private real estate financing helps investors purchase, fix up or refinance a home utilizing a short-term loan from a privately owned company or an individual. While traditional lenders, for example, banks require a lengthy, time consuming application process and are likely to hesitate to give money to a self-employed customer, private mortgage loans in New Rochelle 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 provided that your real estate project is deemed to be profitable, you have ample capital to put towards the downpayment, you have shown yourself capable in the real estate market previously, you have considerable equity in the property or you can show a clear-cut plan to pay back the loan. In addition, New Rochelle private real estate mortgages close fast to provide you with funding right away, helping you close within weeks.

Frequently, customers confer with New Rochelle private mortgage lenders to fund their real estate ventures when:

1. They want to renovate or repair the home and property to be able to sell it at a higher price or to fetch higher rents.

   One example is a borrower who operated a 2-family rental. At the time, he retained a lot of equity available in the property and the rent checks generated steady revenue. Some choice home upgrades would allow him to raise the cost of rent, but since he had a below average credit score of 520, it was highly likely that a bank would turn down his loan application. Thus, he turned to Read Rock Capital for a cash-out refinance and received a loan at 65% LTV.

2. They need to combine all their debts into just one loan.

   A lot of people find that it's stressful to make countless payments every month. To successfully set up a more reasonable situation, people consolidate each of their unsecured debts into one single mortgage loan with only one payment per month.

3. They prefer to take advantage of their property's existing equity for an additional purchase.

   One of our borrowers located in Hawaii owned a residence valued at $1.2 million. Since it was difficult for him to secure an interested party for the house, he had identified someone that was open to lease it with an option to buy. The rent checks were sufficient to pay for the cost of his ongoing mortgage bill, property taxes and cost of insurance. The renter furthermore went ahead and paid him 200k in the form of an advance payment for a three year lease agreement. With the help of this collateral to pay for the house's foreseeable expenses, he came across a new investment opportunity and approached Read Rock Capital to obtain a private mortgage loan nearly seventy percent of the property's value. Meaning that he could make his down payment for his next investment, and also help with his current mortgage.

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

   If an unanticipated event stops a person from hitting his balloon payment due date, he can contact a new loan company to refinance. Refinancing prior to the term date helps you to make the deadline for the balloon payment and avert any penalties in connection with failing to pay the balloon payment.

Looking to discuss your financing plans with a private mortgage lender in New Rochelle? Complete the form or call us and let's talk about the project you have in mind.