Private real estate financing gives assistance to real estate investors who want to purchase, renovate or refinance a home or property using a short-term mortgage from a privately owned firm or an individual. In contrast to bank loans, Niagara Falls private mortgage loans are fast closing, easy qualifying and offered to self-employed borrowers.

Which means that even if you don't have a great credit score, you've still got a high probability of obtaining private money for a real estate loan if your project is presumed to be profitable, you have ample money reserved for the down payment, you have demonstrated yourself competent in real estate in the past, you have significant equity contained in the home or you can show a well-defined plan to pay off the loan. Combined with fast closings of only fourteen days, private real estate mortgages in Niagara Falls may very well be the perfect choice for real estate investors.

Primarily, borrowers rely upon Niagara Falls private mortgage lenders to fund their real estate activities when:

1. A remodeling job or renovation will make it possible to market the house for a much higher price or charge extra rent.

   E.g. one of our borrowers owned a duplex. He had already built considerable equity available in the building and the rent was a routine revenue stream. He wanted to complete some upgrades to the units in order to maintain high rents, but a poor credit score of 520 meant a bank would undoubtedly turn down the mortgage request. After he got in contact with Read Rock Capital to get a loan, we were glad to do a cash-out refinance at 65% of the house's assessed value.

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

   A lot of people find that it's stressful to take care of countless payments on a monthly basis. This is why many people choose to take advantage of the equity in their residence to consolidate all their financial debts into just one loan having a lone monthly payment.

3. They would like to utilize the equity within an existing property to do another project.

   As an example, one of our clients located in Hawaii had a property valued at over one million bucks. His idea was to sell the house but it didn't work out and he finally was forced to be content with leasing the property to an interested party, with the option to buy down the road. The money that came from the rental payments took care of his monthly mortgage payment, insurance, and taxes. He also was given a $200k non-refundable advance payment for the three year contract. With the help of these sureties to cover the property's foreseeable expenses, he ran across a new investment opportunity and got in touch with Read Rock Capital for a private mortgage loan nearly seventy percent of the property's valuation. The loan helped him pay for his next investment property and also pay down his initial mortgage.

4. The balloon payment for an existing mortgage is due and they can't pay it.

   A real estate investor who currently has an existing private mortgage loan and isn't able to pay for the balloon payment caused by a change of circumstances can submit an application for refinancing from another company. A cash-out refinance can help you pay the balloon payment and escape penalty.

Planning to discuss your financing alternatives with a private mortgage lender in Niagara Falls? Fill out the form on this page or give us a call to discuss your project.