Private real estate financing helps investors buy, fix up or refinance a property or home via a short-term loan from a private business or an individual. As opposed to loans from banks, Norfolk private mortgage loans close fast, are easy to qualify for and offered to self-employed borrowers.

That means that even if your credit score just went through the wringer, there is still a high likelihood of receiving private money for a real estate loan as long as your project is deemed to be profitable, you have ample capital available for the downpayment, you have demonstrated yourself capable in earlier real estate investments, you have significant equity in the property or home or you have a clear-cut plan to pay back the balance of the loan. Furthermore, if you want a fast closing, you won't find any options better than Norfolk private real estate mortgages.

In most cases, borrowers consult Norfolk private mortgage lenders to fund their endeavors when:

1. They want funds to fix a home and offer it for a much higher price point or to up the lease amount for renters.

   For instance, there was this client who owned a 2-family rental property. He already had plenty of equity available in the house and the rent checks generated steady cash flow. Though some upgrades to the property might have enabled him to command more rent, a bank would definitely have turned down his mortgage application, since he had a credit score of a mere 520. Thus, he turned to Read Rock Capital to do a cash-out refinance and got a loan at 65% LTV.

2. They're stuck with numerous outstanding debts and desire to combine them.

   Most people know how stressful it is to take care of numerous payments every month. Due to this fact, numerous people get a loan against a property's equity to combine all of their financial debts into one loan payment.

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

   As an illustration, a homeowner in Hawaii had a home appraised at $1.2M. Because it was challenging for him to get a purchaser for his home, he had identified somebody who was willing to lease it having an option to purchase it. The lease payments helped him meet his existing mortgage expenses, taxes and homeowner's insurance. In addition, he received a $200,000 non-refundable advance payment for the 3 year lease agreement. Having these assurances to cover the property's expenses on a recurring basis, he approached Read Rock Capital to get a seventy percent LTV private mortgage loan to help with his upcoming real estate investment. This enabled him to pay an advance on the downpayment for his next investment, and at the same time repay his existing mortgage.

4. They have an existing loan and cannot pay the pending balloon payment.

   A person who invests in real estate and currently has an existing private mortgage and is not able to pay for the balloon payment on account of a change of circumstances can submit an application for refinancing from another company. A refinance can help him avoid missing the cut-off date for the balloon payment and prevent any fines.

Interested in discussing your financing options with a private mortgage lender in Norfolk? Fill out the contact form on this page or give us a call and let's discuss your property.