Private real estate financing helps investors buy, fix up or refinance a property using a short-term mortgage from a privately owned company or an individual. Contrary to bank loans, Old Town private mortgage loans close fast, are easy to qualify for and obtainable by self-employed customers.

This means that irrespective of the caliber of your credit score, there is still a high likelihood of getting private money for a real estate loan assuming that your undertaking is presumed to be profitable, you have enough money to use for the downpayment, you have demonstrated yourself able in earlier real estate ventures, you have substantial equity in the home or property or you have a legitimate plan to pay off the loan. In addition to this, if you are hoping for a fast closing, you won't see any available alternatives better than Old Town private real estate mortgages.

Most individuals use Old Town private mortgage lenders when:

1. They would like to update or fix up the house so they can offer it for sale at a much higher price or to charge higher monthly rental fees.

   E.g. one of our clients had a duplex. He had an abundance of equity in the building and the rent payments generated regular monthly income. A few choice home improvements would help him increase the cost of rent, but because of a poor credit score of 520, it was extremely probable that a bank would turn down the mortgage request. So he came to Read Rock Capital to obtain a cash-out refinance and got financing at 65% LTV.

2. They have multiple debts and need to consolidate them.

   Numerous unsecured debts with different lending rates can be too much to handle and hard to keep an eye on. On that basis, many individuals borrow from a property's equity to consolidate each of their unsecured debts into just one manageable payment.

3. They wish to capitalize on the existing equity available in their existing property or home to work on an additional real estate project.

   One of our clients located in Hawaii owned a home valued at $1M. His idea was to sell the house but it never materialized and he ultimately was forced to settle for leasing the property, with the option to buy at a later date. The lease income helped him meet his current mortgage, property taxes and homeowner's insurance. He also was given a $200k non-refundable advance payment for the 3-year lease. With these sureties to take care of the home's foreseeable expenses, he stumbled on another great real estate opportunity and approached Read Rock Capital for a private mortgage loan close to 70% of the property's estimated value. This allowed him to pay an advance on the downpayment for the new investment, and furthermore repay his existing mortgage.

4. They have a previous loan and cannot afford the looming balloon payment.

   A person who invests in real estate and currently has an existing private loan and cannot afford the balloon payment thanks to a change in circumstances can apply for refinancing from a new company. A refinance will help him avoid missing the due date for the balloon payment and steer clear of any penalty charges.

Trying to find a private mortgage lender in Old Town to fund your real estate investment? Enter your info into the contact form or give us a call and let's talk about your project.