Numerous real estate investors depend on private real estate financing to purchase a new home, or update or refinance one they already have. Unlike loans from banks, Paramus private mortgage loans close fast, are easy to qualify for and accessible to self-employed borrowers.

Thus, in case you don't have very good credit, having a real estate opportunity with promise for profits, a considerable downpayment, previous experience, and a good exit strategy are a great deal more important in regards to being qualified for private money for a real estate loan. And having fast closings of just two weeks, private real estate mortgages in Paramus may very well be the perfect choice for serious real estate investors.

Ordinarily, people rely on Paramus private mortgage lenders to fund their real estate activities when:

1. They want to update or repair the home and property so they can market it at a much higher price or to charge higher rents.

   For instance, there was this client who owned a two-family rental property. He had a great deal of equity available in the property and the rent generated regular income each month. Some choice home improvements would help him bump up the cost of rent, but having a bad credit score of 520, it was extremely likely that a bank would turn down his loan application. After he approached Read Rock Capital to obtain financing, we were able to do a cash-out refinance at 65% of the home's assessed value.

2. They're saddled with multiple outstanding debts and would like to consolidate them.

   The majority of people know how stressful it is to take care of countless payments every month. For this reason, a lot of people decide to utilize the equity available in their house to combine each of their debts into one private mortgage loan with a lone monthly payment.

3. They would like to allocate their existing equity in one house and use it to invest in another one.

   One of our borrowers in Hawaii owned a property worth $1M. Because it was difficult for him to get a buyer for his house, he had found an individual who was open to lease it with the option to purchase it. The rent amount was enough to cover his monthly mortgage payment, property taxes and cost of homeowner's insurance. The tenant furthermore went ahead and paid him $200,000 for a deposit for the 3 year lease. Using these sureties to cover the home's financial obligations on an ongoing basis, he approached Read Rock Capital for a 70% LTV private mortgage loan to aid in his subsequent real estate investment. This enabled him to pay an advance on the downpayment for the new investment, and also helped with his present mortgage.

4. They need assistance to satisfy the balloon payment for the current mortgage loan.

   A real estate investor who has a previous private mortgage and is unable to pay for the balloon payment on account of a change in circumstances can fill out an application for refinancing from a new company. A refinance will help the person avoid missing the cut-off date for the balloon payment and steer clear of any penalties.

Looking to connect with a private mortgage lender in Paramus to discuss loan programs for your next investment? Submit the contact form or call us and let's discuss your project.