Private real estate financing can help investors buy, renovate or refinance a property via a short-term mortgage loan from a private firm or an individual. Oak Park private mortgage loans have many advantages — they are fast closing, have minimal eligibility requirements and additionally, are available to self-employed individuals.

Meaning that irrespective of the level of your credit score, you've still got a high probability of getting private money for a real estate loan so long as your real estate project is viewed to be profitable, you have enough money to put towards the downpayment, you have proven yourself competent in the real estate market previously, you have sizeable equity contained in the home or property or you have a clear-cut plan to pay back the loan. And having fast closings of only 14 days, private real estate mortgages in Oak Park may very well be the ideal choice for real estate investors.

Ordinarily, borrowers talk to Oak Park private mortgage lenders to loan money for their projects when:

1. A rehab or renovation can help them market the home at a much higher price point or charge additional rent.

   For example, there was a customer who owned a 2-unit rental. He already had plenty of equity in the property and the rent checks generated steady income. While a few improvements to the property may have helped him command higher rent, a bank would most likely have turned down his mortgage application, given that his credit score was down at 520. After he approached Read Rock Capital to obtain a loan, we were pleased to complete a cash-out refinance for 65% of the duplex's appraised value.

2. They want to combine financial debts.

   Multiple debts with a variety of rates are often very overwhelming and challenging to keep an eye on. To help set up a more reasonable situation, people combine each of their outstanding debts into one single loan with only one monthly payment.

3. They wish to release the existing equity in one property and purchase a different one.

   To provide an example, a homeowner in Hawaii owned a home appraised at $1.2M. When he was unable to secure a buyer for his home, he inked a lease-option-to-buy arrangement with somebody. The rental agreement payments made it possible to meet his existing mortgage expenses, taxes and insurance. The tenant also put $200k towards a non-refundable downpayment when he signed the 3 year agreement. Having these sureties to take care of the property's bills on an ongoing basis, he called Read Rock Capital for a seventy percent loan-to-value private mortgage loan for his upcoming investment. The borrowed funds helped him afford his next investment property as well as pay down his original mortgage.

4. The balloon payment for a previous mortgage is owed soon and they can not pay it.

   If an unexpected incident stops a borrower from hitting his balloon payment deadline, he can find a new lender to refinance. A cash-out refinance will help you make the balloon payment and evade fines.

Wanting to make contact with a private mortgage lender in Oak Park to talk about loan options for your next investment? Submit the contact form or give us a call to talk about your property or properties.