Private real estate financing involves finding a short-term mortgage loan through a privately owned company or individual person with the intention to purchase, perform upgrades on or refinance a home or property. Whereas standard lenders, for example, banks require an extended, time consuming application process and in all likelihood will be reluctant to loan money to a self-employed borrower, private mortgage loans in Orono close fast and are easy qualifying.

This means that even if your credit score just went through the wringer, you've still got a high probability of qualifying for private money for a real estate loan provided that your real estate project is presumed to be profitable, you have adequate money to put towards the down payment, you have shown yourself able in earlier real estate ventures, you have substantial equity contained in the home or you have a clear-cut plan to pay off the loan. And having fast closings of just fourteen days, private real estate mortgages in Orono may very well be the ideal choice for serious real estate investors.

Most borrowers depend on Orono private mortgage lenders when:

1. A remodeling job or renovation can help them offer their property at a much higher price point or get extra rent.

   E.g. a past borrower owned a duplex. He held an abundance of equity available in the property and the rent payments brought in routine monthly income. A few choice home enhancements would undoubtedly help him raise the cost of rent, but having a bad credit score of 520, it was extremely likely that a bank would turn down the mortgage application. Shortly after he got into contact with Read Rock Capital to obtain financing, we were happy to do a cash-out refinance at 65% of the house's value.

2. They need to merge all their outstanding debts into one loan.

   Multiple outstanding debts with various interest rates can be too much to handle and hard to keep tabs on. To make the situation more reasonable, people combine each of their unsecured debts into an individual mortgage loan with just one payment per month.

3. They wish to take advantage of their house's equity for another purchase.

   One of Island View's borrowers located in Hawaii had a residence worth $1.2 million. His idea was to sell the house but it never transpired and he ultimately was forced to be satisfied with leasing the place to an interested party, with the option to purchase it at a future date. The amount of rent was enough to cover the cost of his monthly mortgage bill, taxes and homeowner's insurance payments. The renter also gave $200k for a non-refundable advance payment as part of signing the 3-year lease contract. Using these assurances to cover the home's expenses on a recurring basis, he contacted Read Rock Capital to obtain a 70% LTV private mortgage loan to aid in his upcoming purchase of an investment property. This not only gave him enough capital to use for a deposit on his next investment, but also helped him repay the current mortgage.

4. They have a previous mortgage and are unable to afford the looming balloon payment.

   A real estate investor who currently has an existing private loan and is not able to afford the balloon payment because of a change of circumstances can submit an application for refinancing from another company. A refinance will help him avoid missing the cut-off date for the balloon payment and prevent any fines.

Are you looking for a private mortgage lender in Orono to help you afford your real estate investment? Fill out the form or call us and let's discuss your property or properties.