Private real estate financing can help investors purchase, fix up or refinance a property via a short-term mortgage from a privately owned company or an individual. While traditional lenders like banks require an extended, drawn out application process and in all likelihood will be reluctant to offer money to a self-employed individual, private mortgage loans in Portland close fast and are easy to qualify for.

This is fantastic news for investors since even an individual with weak credit can apply for private money for a real estate loan assuming that he has a deal that shows strong potential, he has adequate cash for a down payment, he has shown himself competent in past real estate ventures, and can show a sensible exit strategy. Furthermore, if you're searching for a fast closing, there are no better options than Portland private real estate mortgages.

Commonly, customers reach out to a private mortgage lender in Portland when:

1. A rehab or update will help to offer their property for a higher price point or get extra rent.

   As an example, one of our borrowers owned a duplex. He held a great deal of equity in the building and the rent checks brought in regular income each month. While some enhancements to the units would've helped him charge higher rent, a bank would definitely have turned down his mortgage request, considering that he had a credit score of down at 520. When he got in contact with Read Rock Capital for financing, we were able to do a cash-out refinance at 65% of the home's valuation.

2. They're stuck with multiple personal debts and prefer to consolidate them.

   Most people know how stressful it is to make countless payments each month. On that basis, some individuals do a loan against their home's equity to combine all their outstanding debts into one loan.

3. They would like to allocate their equity in one property and purchase a different one.

   Here is an example. A customer in Hawaii owned a home valued at $1,200,000. Though it was tough for him to find a purchaser for the home, he had a person who was wanting to lease it with an option to purchase it. The lease payments helped him meet his current mortgage payment, taxes and insurance. The tenant also included $200,000 for a non-refundable downpayment when he signed the 3 year lease agreement. With this collateral to pay for the home's foreseeable expenses, he came across a new investment opportunity and contacted Read Rock Capital to obtain a private mortgage loan nearly 70% of the home's valuation. This let him make the downpayment for his next investment, and at the same time repay his existing mortgage.

4. The balloon payment for a preexisting loan is owed soon and they are unable to handle it.

   A person who invests in real estate and currently has an existing private loan and isn't able to pay for the balloon payment as a result of a change in circumstances can apply for refinancing from another loan company. A cash-out refinance can help the person pay the balloon payment and escape penalty.

Wanting to meet a private mortgage lender in Portland speak about financing alternatives for your next investment? Fill out the form or get in touch with us via phone to talk about your property.