Private real estate financing entails getting a short-term mortgage from a privately owned business or individual as a way to buy, carry out upgrades on or refinance a property. As opposed to loans from banks, North Charleston private mortgage loans close fast, are easy to qualify for and accessible to self-employed borrowers.

This is great for real estate investors since somebody with lousy credit can apply for private money for a real estate loan as long as he has a deal that shows strong potential, he has adequate money for a downpayment, he has shown himself capable in prior real estate projects, and he can show a good exit strategy. Combined with fast closings of only 14 days, private real estate mortgages in North Charleston may very well be the perfect solution for real estate investors.

Most borrowers depend on North Charleston private mortgage lenders when:

1. They wish to remodel or make repairs to the property or home to enable them to offer it for sale at a higher price point or to ask for higher monthly rental fees.

   Real example: one of our clients operated a two-unit rental. He already retained a significant amount of equity in the building and the rent payments brought in a steady revenue. A handful of choice home improvements would help him increase his rents, but having a lower credit score of 520, it was highly likely that a bank would turn down his loan request. After he got into contact with Read Rock Capital for a mortgage, we were able to complete a cash-out refinance for 65% of the property's market value.

2. They have numerous unsecured debts and would like to combine them.

   Numerous debts with various lending rates can be quite overwhelming and hard to keep tabs on. For this reason, a lot of people choose to utilize the equity available in their property to consolidate their outstanding debts into just one private loan with a lone payment per month.

3. They want to take advantage of the existing equity in an existing house to work on another real estate investment.

   For instance, one of Island View's past customers located in Hawaii had a place valued in excess of one million dollars. He wanted to sell the house but that didn't work out and he eventually was forced to be content with leasing the house, with the option to purchase it at a later time. The lease payouts made it possible to meet his current mortgage expenses, taxes and insurance. The renter also went ahead and paid $200,000 for an advance payment for the 3 year lease contract. Having these assurances to cover the property's monthly payments on a recurring basis, he phoned Read Rock Capital to obtain a 70% loan-to-value private mortgage loan to aid in his upcoming purchase of an investment property. The financing helped him finance a different investment property as well as pay off his initial mortgage.

4. They have a previous private loan and are not able to afford the pending balloon payment.

   A person who invests in real estate and already has an existing private mortgage loan and cannot afford the balloon payment on account of a change in circumstances can apply for refinancing from a new loan company. A refinance will help him avoid missing the cut-off date for the balloon payment and prevent any penalties.

Intending to discuss financing programs with a private mortgage lender in North Charleston? Complete the contact form or give us a call and let's talk about the project you have in mind.