Private real estate financing involves obtaining a short-term mortgage loan via a private firm or individual person as a way to purchase, perform upgrades on or refinance a property or home. Whereas traditional lending institutions such as banks have a prolonged, drawn out application process and in all likelihood will think twice about lending money to a self-employed applicant, private mortgage loans in Newport close fast and have minimal eligibility requirements.

Meaning that even if you do not have a very good credit score, you've still got a good chance of obtaining private money for a real estate loan as long as your investment is deemed to be profitable, you have adequate capital to put towards the down payment, you have proven yourself competent in prior real estate projects, you have considerable equity contained in the home or property or you have a legitimate plan to pay off the loan. Combined with fast closings of only 14 days, private real estate mortgages in Newport may very well be the ideal solution for serious real estate investors.

Most real estate professionals speak with Newport private mortgage lenders when:

1. They're in search of capital to repair a property and sell it for a much higher price or to up the lease amount for renters.

   For instance, there was a client who owned a 2-family rental. He held plenty of equity in the asset and the rent generated regular monthly income. Although a few improvements to the units would've enabled him to ask for more rent, a bank would definitely have turned down his mortgage request, given that his credit score was a mere 520. Right after he got in contact with Read Rock Capital for financing, we were pleased to do a cash-out refinance at 65% of the house's appraised value.

2. They want to combine each of their outstanding debts into one loan.

   A lot of people find it stressful to deal with numerous payments every month. Due to this, some individuals do a loan from a property's equity to combine all their financial debts into one single mortgage loan.

3. They wish to utilize their home's existing equity for some other home purchase.

   One of our customers in Hawaii owned a residence valued at $1M. When he was unable to find a buyer for his house, he inked a lease-option-to-buy deal with an interested party. The rental agreement payments helped him meet his existing mortgage, taxes and insurance. The tenant also agreed to pay him two hundred thousand dollars as a downpayment for a 3 year lease. With the help of this collateral to cover the house's foreseeable expenses, he came across another great real estate investment opportunity and got in touch with Read Rock Capital to obtain a private mortgage loan around 70% of the home's estimated value. This gave him ample money to use for a deposit or his next property, but also helped him deal with the existing mortgage.

4. They already have an existing mortgage and cannot afford the pending balloon payment.

   If an unforeseen incident hinders someone from hitting his balloon payment deadline, he could seek out a different mortgage lender to refinance. Refinancing prior to the due date allows you to make the due date for the balloon payment and stay clear of penalty charges related to missing the balloon payment.

Hoping to make contact with a private mortgage lender in Newport to talk about loan options for your upcoming real estate investment? Submit the form on this page or get in touch with us via phone and let's discuss the property you have in mind.