Private real estate financing means getting a short-term mortgage loan from a privately owned business or individual person in order to purchase, carry out improvements on or refinance a property or home. While traditional lenders such as banks require an extended, drawn out application process and are more than likely to hesitate to offer money to a self-employed client, private mortgage loans in Pittsburg close fast and have minimal eligibility criteria.

That's why, while you might have bad credit, having a real estate opportunity with promise for profits, a substantial down payment, past experience in real estate, and a clear exit strategy are more relevant in terms of being eligible for private money for a real estate loan. And with fast closings of only two weeks, private real estate mortgages in Pittsburg may very well be the perfect choice for serious real estate investors.

Most individuals talk with Pittsburg private mortgage lenders when:

1. A rehab or renovation can allow them to offer the house for a much higher price or fetch additional rent.

   E.g. a past borrower owned a duplex. He had already built a good amount of equity available in the house and the rent payments was a routine source of income. Although some improvements to the units would've helped him collect more rent, a bank would undoubtedly have turned down his loan application, given that his credit score was only 520. For that reason, the customer got into contact with Read Rock Capital (Read Rock Capital) to complete a cash-out refinance that in turn got him a loan for 65% of the property's market value.

2. They have multiple unsecured debts and would like to consolidate them.

   The majority of people find that it's stressful to take care of numerous payments on a monthly basis. To help make the situation more manageable, people merge each of their unsecured debts into a single line of credit with just one payment per month.

3. They want to use their home's existing equity for an additional home purchase.

   As an example, one of Island View's borrowers in Hawaii had a house appraised above a million bucks. When he could not secure a buyer for the home, he entered into a lease-option-to-buy contract with someone. The rent checks were adequate to take care of the cost of his monthly mortgage bill, property taxes and homeowner's insurance payments. The tenant also went ahead and paid two hundred thousand dollars for a downpayment for the 3 year lease. These sureties meant he no longer needed to be concerned with the property's future expenses, so when another great real estate investment opportunity showed up, he came to Read Rock Capital and received a private mortgage loan at seventy percent LTV. The loan helped him finance a new investment property as well as deal with his original mortgage.

4. The balloon payment for their current private mortgage is due and they are unable to afford it.

   If a borrower is not able to pay a balloon payment thanks to unforeseen causes, he can try to refinance his loan with a new loan company. Refinancing prior to the term date enables the borrower to make the deadline for the balloon payment and avert any fees and penalties associated with failing to pay the balloon payment.

Looking to discuss mortgage options with a private mortgage lender in Pittsburg? Fill out the form on this page or call us and let's talk about your project.