Private real estate financing means obtaining a short-term loan through a privately owned company or individual person to be able to buy, perform improvements on or refinance a property. Although conventional lending institutions like banks require an extended, time consuming application process and are more than likely to be reluctant to loan money to a self-employed client, private mortgage loans in Newnan close fast and have minimal eligibility criteria.

That's great news for real estate investors considering that a person with weak credit can obtain a private money for a real estate loan provided that he has a deal that shows strong potential, he has plenty of cash for a downpayment, he has proven himself competent in the real estate market, and he can show a plan for an exit strategy. In addition, Newnan private real estate mortgages close fast to give you financing right away, allowing you to close within two to three weeks.

Most individuals speak with Newnan private mortgage lenders when:

1. They want to remodel or fix up the property or home so they can market it at an increased price point or to get higher rents.

   By way of example, we had this client with a 2-unit rental. He already retained a considerable amount of equity available in the property and the rent brought in a steady income. He wanted to perform some upgrades to the property to help maintain high rents, but a poor credit score of 520 meant that a bank would doubtless turn down the loan application. Accordingly, he reached out to Read Rock Capital for a cash-out refinance and obtained a loan at 65% LTV.

2. They have multiple outstanding debts and wish to combine them.

   Numerous unsecured debts with various interest rates can be extremely overwhelming and tough to keep tabs on. Due to this fact, many individuals borrow from a property's equity to merge each of their debts into one single mortgage loan.

3. They wish to capitalize on the equity in an existing home to do an additional project.

   One of Island View's borrowers located in Hawaii had a residence valued at $1.2 million. When he was unable to procure a buyer for the house, he signed a lease-option-to-buy deal with someone. The rent amount was sufficient to pay for the cost of his monthly mortgage bill, property taxes and cost of insurance. He also was given a $200,000 non-refundable down payment for the three year lease. With the help of these sureties to cover the property's foreseeable financial obligations, he came across a new real estate investment opportunity and contacted Read Rock Capital to obtain a private mortgage loan close to 70% of the home's valuation. Meaning that he was able to make a downpayment for his next investment, and also pay down his current mortgage.

4. They need help to satisfy the balloon payment for a previous mortgage loan.

   A real estate investor who has a previous private loan and is not able to pay for the balloon payment on account of a change in circumstances can submit an application for refinancing from an alternative lending company. Refinancing ahead of the term date helps you to meet the due date for the balloon payment and avert any fines associated with missing the balloon payment.

Looking to meet a private mortgage lender in Newnan to go over loan alternatives for your next real estate investment? Complete the form on this page or give us a call to discuss your project.