Private real estate financing gives assistance to real estate investors who want to pay for, renovate or refinance a home or property utilizing a short-term mortgage from a privately owned business or an individual. Unlike loans from banks, Nicholasville private mortgage loans close fast, are easy to qualify for and accessible to self-employed applicants.

This means that even if you do not have a very good credit score, you've still got a good chance of getting private money for a real estate loan assuming that your real estate project is regarded as profitable, you have enough capital reserved for the down payment, you have shown yourself competent in earlier real estate investments, you have considerable equity contained in the home or property or you have an intelligible plan to repay the loan. And with fast closings of only 2 weeks, private real estate mortgages in Nicholasville are an ideal solution for serious real estate investors.

Frequently, clients rely upon Nicholasville private mortgage lenders to provide capital for their real estate activities when:

1. A rehab or renovation can allow them to offer the home for a much higher price or get additional rent.

   Real example: one of our borrowers operated a 2-family rental property. At the time, he had a considerable amount of equity in the property and the rent payments generated steady cash flow. A handful of choice home upgrades would undoubtedly help him bump up his rental prices, but because of a low credit score of 520, it was very likely for a bank to turn down his mortgage request. Right after he got into contact with Read Rock Capital to get a loan, we were happy to complete a cash-out refinance at 65% of the house's assessed value.

2. They need to consolidate their debts.

   Most people find it stressful to manage countless payments on a monthly basis. Due to this, many individuals get a loan against their home equity to merge all their unsecured debts into one single mortgage loan.

3. They would like to use their home's existing equity for an additional real estate deal.

   As one example, a homeowner in Hawaii had a home appraised at $1.2M. He wanted to sell the house but that didn't happen and he eventually had to settle for leasing the house, with an option to buy at a future time. The rent checks were adequate to take care of the cost of his monthly mortgage bill, property taxes and cost of insurance. The person also consented to pay him 200k as a downpayment for the 3-year lease contract. The signed agreement meant that he did not have to be concerned about the home's future financial obligations, and thus, when another great investment opportunity surfaced, he came to Read Rock Capital and received a private mortgage loan at 70% LTV. This let him pay an advance on the down payment for his next investment, and at the same time pay down his existing mortgage.

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

   A real estate investor who already has an existing private mortgage loan and isn't able to afford the balloon payment as a result of a change of circumstances can submit an application for refinancing from an alternative company. A cash-out refinance helps the borrower complete the balloon payment and escape fines.

Trying to find a private mortgage lender in Nicholasville to finance your investment purchase? Complete the form on this page or give us a call to talk about your property or properties.