Private real estate financing involves obtaining a short-term mortgage loan from a privately owned business or individual as a way to purchase, perform improvements on or refinance a property. As opposed to loans from banks, Norwalk private mortgage loans are fast closing, have minimal eligibility criteria and obtainable by self-employed individuals.

This is good news for real estate investors because even anyone with lousy credit can qualify for private money for a real estate loan provided that he has a promising project, he has sufficient cash for a down payment, he has proven himself competent in prior real estate ventures, and he can show a good exit strategy. What's more, the fast closing Norwalk private real estate mortgages supply you with funding without delay, letting you close within weeks.

Primarily, borrowers rely on Norwalk private mortgage lenders to loan money for their projects when:

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

   E.g. a past borrower had a duplex. He previously built sufficient equity in the building and the rent was a recurring source of income. Though some remodeling work to the property may have helped him command higher rent, a bank would most likely have turned down the loan application, due to the fact his credit score was only 520. Right after he got into contact with Read Rock Capital to get a loan, we were able to complete a cash-out refinance for 65% of the house's valuation.

2. They want to consolidate personal debts.

   The majority of people find it stressful to take care of countless payments each and every month. Due to this, many individuals borrow against a property's equity to combine each of their financial debts into one manageable payment.

3. They would like to make use of the existing equity in their current property or home to do an additional real estate investment.

   For example, a borrower located in Hawaii owned a property valued at $1.2M. When he was not able to find a buyer for the property, he agreed to a lease-option-to-buy contract with an interested party. The lease payments served to meet his current mortgage, taxes and homeowner's insurance. The renter also went ahead and paid him 200k as a down payment for the three year contract. With these assurances to pay for the home's foreseeable bills, he came across a new real estate opportunity and contacted Read Rock Capital for a private mortgage loan close to 70% of the property's valuation. Meaning that he could make the down payment for his next property, and also pay down his current mortgage.

4. They want help to satisfy the balloon payment for the existing mortgage.

   A person who invests in real estate and already has an existing private mortgage and isn't able to pay for the balloon payment as a result of a change of circumstances can fill out an application for refinancing from another loan company. A refinance can help the person avoid missing the cut-off date for the balloon payment and steer clear of any fines.

Wanting to make contact with a private mortgage lender in Norwalk to talk about financing alternatives for your next project? Complete the form on this page or call us to talk about the property you have in mind.