Private real estate financing involves finding a short-term loan through a privately owned company or individual with the intention to purchase, perform improvements on or refinance a home or property. Whereas typical lending institutions like banks require an extended, time consuming application process and are likely to be reluctant to offer money to a self-employed applicant, private mortgage loans in Palatine close fast and are easy to qualify for.

That's a good thing for real estate investors since even a person with weak credit can obtain a private money for a real estate loan assuming that he has a project that shows strong potential, he has sufficient money for a downpayment, he has demonstrated himself capable in prior real estate projects, and has a sensible exit strategy. And having fast closings of only 14 days, private real estate mortgages in Palatine may very well be the right choice for serious real estate investors.

Usually, people seek out a private mortgage lender in Palatine when:

1. They're looking for capital to remodel a property and sell it at a much higher price or to rent it out at a higher monthly amount.

   Real example: one of our customers operated a two-family rental property. He'd already built up a good amount of equity in the asset and the monthly rent checks was a recurring source of income. Although some improvements to the place would have enabled him to charge more rent, a bank would likely have turned down his loan request, given that his credit score was only 520. So he came to Read Rock Capital to obtain a cash-out refinance and received a loan at 65% LTV.

2. They wish to combine financial debts.

   Multiple unsecured debts with different rates are very overwhelming and tough to keep an eye on. As a result, some individuals do a loan from their home equity to consolidate all their unsecured debts into one single loan.

3. They wish to take advantage of their property's existing equity for some other home purchase.

   For example, a client in Hawaii owned a home valued at $1.2M. His idea was to sell the house but it didn't work out and he ultimately was forced to be satisfied with leasing the house to an interested party, with the option to buy at a future date. The rent amount was more than enough to take care of his monthly mortgage payment, property taxes and insurance payments. The renter furthermore agreed to pay him $200,000 as a deposit for the three year contract. Using these assurances to cover the property's monthly payments on a regular basis, he called Read Rock Capital to obtain a 70% LTV private mortgage loan to help with his subsequent real estate investment. This let him make the deposit for the new investment, and furthermore helped with his current mortgage.

4. They already have an existing mortgage and can't pay the looming balloon payment.

   If an unanticipated event stops a person from hitting his balloon payment due date, he could contact an alternative loan provider to refinance. A cash-out refinance can help the person complete the balloon payment and evade penalty.

Looking for a private mortgage lender in Palatine to fund your real estate investment? Submit the contact form on this page or get in touch with us via phone and let's discuss your project.