A lot of real estate investors rely on private real estate financing to purchase a new property, or renovate or refinance one they already own. Whereas conventional lending institutions, for example, banks necessitate a prolonged, time consuming application process and are likely to think twice about loaning money to a self-employed borrower, private mortgage loans in Newark close fast and are easy to qualify for.

This is great news for investors considering that even anyone with poor credit can qualify for private money for a real estate loan assuming that he has a promising deal, he has enough money for a downpayment, he has proven himself capable in past real estate projects, and has a plan for an exit strategy. Combined with fast closings of just 2 weeks, private real estate mortgages in Newark are the right alternative for serious real estate investors.

Frequently, people confer with Newark private mortgage lenders to fund their projects when:

1. They need to remodel or fix up the house to enable them to market it at an increased price point or to bring in higher rents.

   One example is a client who held a two-unit rental property. He had a great deal of equity in the house and the rent payments brought in routine income each month. He sought to complete some renovation to the units so that he could keep his rents high, but a low credit score of 520 meant a bank would turn down the loan request. Right after he contacted Read Rock Capital to get a loan, we were able to complete a cash-out refinance at 65% of the property's value.

2. They're stuck with numerous outstanding debts and desire to consolidate them.

   Countless outstanding debts with a variety of lending rates are very overwhelming and hard to manage. To make the situation more reasonable, some people combine all of their financial debts into one single loan with only one payment per month.

3. They would like to use their home's equity for a different purchase.

   For instance, one of Island View's previous customers located in Hawaii had a house valued at more than one million bucks. When he was unable to procure a buyer for the home, he agreed to a lease-option-to-buy arrangement with somebody. The rental agreement payments made it possible to meet his existing mortgage, taxes and insurance. Additionally, he received a two hundred thousand dollars non-refundable down payment for the three year contract. Having these assurances to take care of the property's foreseeable financial obligations, he discovered a new real estate opportunity and got into contact with Read Rock Capital for a private mortgage loan close to 70% of the property's estimated value. This means that he was able to make the down payment for his next property, and also repay his present mortgage.

4. They want assistance to meet the balloon payment for a previous loan.

   A real estate investor who has a previous private mortgage loan and isn't able to pay for the balloon payment as a result of a change of circumstances can fill out an application for refinancing from a different lending company. Refinancing before the due date enables the borrower to make the deadline for the balloon payment and avert any fees and penalties related to missing the balloon payment.

Looking to meet a private mortgage lender in Newark speak about loan options for your next investment? Enter your info into the contact form on this page or get in touch with us via phone to talk about your property.