Private real estate financing involves getting a short-term loan from a private firm or individual to be able to buy, perform upgrades on or refinance a home or property. Whereas typical lending institutions like banks will require an extended, time consuming application process and are likely to think twice about lending money to a self-employed applicant, private mortgage loans in Ottawa close fast and are easy to qualify for.

That means that no matter the quality of your credit score, you still have a good chance of getting private money for a real estate loan so long as your real estate project is deemed to be profitable, you have enough money to put towards the down payment, you have proven yourself able in the real estate market previously, you have sizeable equity contained in the home or property or you have an intelligible plan to pay off the loan. And with fast closings of only fourteen days, private real estate mortgages in Ottawa are the right solution for ambitious real estate investors.

In general, clients get in contact with a private mortgage lender in Ottawa when:

1. They want to find capital to renovate a property and offer it for sale for a much higher price or to up the lease amount for renters.

   By way of example, we had this client with a two-unit rental. He'd already built up a good amount of equity available in the building and the rent was a regular source of income. He sought to complete some renovation to the place in order to maintain high rents, but a low credit score of 520 meant a bank would doubtless turn down his mortgage application. When he approached Read Rock Capital to get a mortgage, we were glad to do a cash-out refinance for 65% of the house's assessed value.

2. They wish to combine personal debts.

   Multiple debts with different rates are quite overwhelming and difficult to keep track of. As a result, lots of people get a loan from a property's equity to merge their financial debts into one single loan payment.

3. They want to unlock their equity in one house and purchase another one.

   For example, a homeowner in Hawaii owned a house valued at $1.2M. His idea was to sell the house but it never materialized and he finally had to settle for leasing the property to an interested party, with an option to purchase it at a later time. The rent checks were adequate to pay for his regular mortgage payment, property taxes and cost of insurance. The renter furthermore went ahead and paid $200,000 as an advance payment for a 3-year agreement. Having these sureties to cover the property's bills on a regular basis, he approached Read Rock Capital to obtain a 70% loan-to-value private mortgage loan to aid in his upcoming purchase of an investment property. This not only gave him adequate cash to put towards a down payment on his next investment, but also made it easier for him to deal with the current mortgage.

4. They already have an existing private loan and are unable to afford the looming balloon payment.

   If an unanticipated incident hinders someone from making his balloon payment due date, he could find a new company to refinance. Refinancing ahead of the due date helps the borrower to meet the deadline for the balloon payment and avert any fines in connection with failing to pay the balloon payment.

Do you need a private mortgage lender in Ottawa to fund your investment purchase? Fill out the contact form or call us and let's talk about your property or properties.