Private real estate financing can help investors purchase, fix up or refinance a property using a short-term mortgage from a privately owned company or an individual. Although traditional lenders such as banks have an extended, drawn out application process and are more than likely to be reluctant to offer money to a self-employed customer, private mortgage loans in Newburgh close fast and are easy to qualify for.

This is great news for real estate investors considering that someone with lousy credit can qualify for private money for a real estate loan provided that he has a project that shows promise, he has adequate money for a down payment, he has shown himself competent in earlier real estate projects, and can show a plan for an exit strategy. And with fast closings of fourteen days, private real estate mortgages in Newburgh are the right alternative for real estate investors.

Typically, customers seek out a private mortgage lender in Newburgh when:

1. They're in search of money to fix a home and property and put it up for sale at a much higher price point or to up the lease amount for renters.

   For example, there was this customer with a two-family rental. He previously built up a good amount of equity in the building and the rent payments was a recurring source of income. While some remodeling work to the property would have enabled him to charge higher rent, a bank would definitely have turned down the loan request, since he had a credit score of only 520. When he got in contact with Read Rock Capital to get financing, we were able to do a cash-out refinance at 65% of the home's appraised value.

2. They're stuck with numerous debts and would like to consolidate them.

   Most people find that it's stressful to deal with countless payments on a monthly basis. On that basis, numerous people borrow from a property's equity to merge all their unsecured debts into one single loan payment.

3. They wish to use their home's existing equity for a different purchase.

   As an example, one of Island View's past borrowers located in Hawaii had a place valued at more than a million dollars. When he was unable to procure a buyer for his property, he entered into a lease-option-to-buy arrangement with an interested party. The rental agreement income served to meet his current mortgage expenses, property taxes and insurance. In addition, he received a $200k non-refundable down payment for the 3-year agreement. With these sureties covering the property's bills on an ongoing basis, he contacted Read Rock Capital to get a 70% LTV private mortgage loan to aid in his upcoming purchase of an investment property. This gave him ample money to put towards a downpayment on his next property, but also made it easier for him to pay down the existing mortgage.

4. They already have a preexisting mortgage and can't pay the pending balloon payment.

   If someone cannot pay a balloon payment due to unexpected factors, he can try and refinance his loan with another loan provider. A refinance will help the person hit the due date for the balloon payment and avoid penalty charges.

Wanting to meet a private mortgage lender in Newburgh to talk about funding programs for your upcoming real estate investment? Complete the form on this page or get in touch with us via phone and let's discuss your property.