Private real estate financing means obtaining a short-term mortgage loan via a privately owned company or individual with the intention to purchase, carry out upgrades on or refinance a property. O’Fallon private mortgage loans have many advantages — they close fast, are easy to qualify for and are also available for self-employed individuals.

This is great for real estate investors since even anyone with poor credit can opt for private money for a real estate loan provided that he has a promising project, he has enough cash for a down payment, he has proven himself capable in prior real estate ventures, and he can show a sensible exit strategy. And having fast closings of just fourteen days, private real estate mortgages in O’Fallon may very well be the perfect alternative for serious real estate investors.

Usually, investors reach out to a private mortgage lender in O’Fallon when:

1. A remodeling job or restoration can help them offer the house for a higher price or fetch extra rent.

   For example, we had this borrower with a 2-unit rental property. He held a great deal of equity available in the house and the rent brought in regular income each month. He wanted to do some renovation to the units to be able to maintain high rents, but a below average credit score of 520 meant a bank would turn down the mortgage request. Consequently, the customer got in contact with Read Rock Capital (Read Rock Capital) to complete a cash-out refinance that in turn provided him a loan for 65% of the property's appraised value.

2. They want to combine each of their unsecured debts into one single payment.

   Numerous debts with a variety of interest rates can be extremely overwhelming and tough to manage. This is the reason some people decide to take advantage of the equity available in their house to combine their financial debts into only one loan which has a single monthly payment.

3. They want to use the equity within an existing home to do an additional real estate investment.

   For example, a homeowner located in Hawaii had a home appraised at $1,200,000. Since it was tough for him to find a buyer for the house, he had identified somebody who was ready to lease it having an option to purchase it. The lease payments made it possible to meet his current mortgage payment, taxes and insurance. Additionally, he was given a $200,000 non-refundable deposit for the 3-year contract. These sureties meant he no longer had to be concerned about the property's ongoing financial obligations, and so when a new real estate opportunity surfaced, he found Read Rock Capital and received a private mortgage loan at seventy percent LTV. The borrowed funds helped him put enough money towards his next investment property and in addition, pay down his primary mortgage.

4. They already have a preexisting private loan and are unable to pay the looming balloon payment.

   A real estate investor who has a previous private mortgage loan and cannot afford the balloon payment because of a change in circumstances can apply for refinancing from a new lender. Refinancing ahead of the due date enables you to meet the deadline for the balloon payment and avoid consequences in connection with failing to make the balloon payment.

Looking to meet a private mortgage lender in O’Fallon to talk about funding options for your next real estate investment? Fill out the form or give us a call and let's discuss the property or properties you have in mind.