Private real estate financing involves finding a short-term mortgage loan from a privately owned company or individual in order to purchase, perform improvements on or refinance a property. Unlike bank loans, Portales private mortgage loans are fast closing, easy qualifying and offered to self-employed customers.

It means that even if you don't have a very good credit score, you still have a good chance of qualifying for private money for a real estate loan if your project is regarded as profitable, you have enough capital to use for the downpayment, you have demonstrated yourself able in earlier real estate ventures, you have substantial equity in the property or home or you have a clear plan to pay back the loan. And having fast closings of just two weeks, private real estate mortgages in Portales may very well be the perfect alternative for serious real estate investors.

Frequently, customers rely upon Portales private mortgage lenders to loan money for their projects when:

1. A rehab or restoration will make it possible to offer their property at a higher price or get extra rent.

   For instance, we had this borrower who owned a two-unit rental property. At the time, he retained plenty of equity in the house and the monthly rent generated steady income. He desired to complete some improvements to the property to help maintain high rents, but a low credit score of 520 meant that a bank would undoubtedly turn down the mortgage application. Right after he got in contact with Read Rock Capital to obtain a mortgage, we were able to do a cash-out refinance for 65% of the property's appraised value.

2. They want to combine all their outstanding debts into one single loan.

   Many people know how stressful it is to take care of countless payments on a monthly basis. This is why some people decide to take advantage of the equity available in their house to combine all of their unsecured debts into only one private mortgage with a single monthly payment.

3. They prefer to release the equity in one property or home and use it to acquire another one.

   One of our customers located in Hawaii owned a house worth over $1,000,000. When he was not able to find a buyer for his home, he entered into a lease-option-to-buy deal with an interested party. The rental agreement payouts served to meet his current mortgage, property taxes and insurance. The tenant additionally put two hundred thousand dollars towards a non-refundable down payment as he signed the three year lease contract. Having these sureties to pay for the property's foreseeable financial obligations, he came across another great investment opportunity and approached Read Rock Capital to obtain a private mortgage loan close to 70% of the property's value. The loan helped him cover the cost of a new investment property and also repay his primary mortgage.

4. They already have a preexisting loan and cannot afford the looming balloon payment.

   If someone can't pay a balloon payment resulting from unexpected factors, he can try and refinance his loan with a different lending company. A cash-out refinance will help the person make the balloon payment and evade consequences.

In search of a private mortgage lender in Portales to fund your real estate investment? Enter your info into the contact form on this page or give us a call and let's talk about your project.