Private real estate financing entails finding a short-term mortgage loan from a private firm or individual in order to buy, carry out improvements on or refinance a home. Unlike bank loans, Princeton private mortgage loans are fast closing, easy qualifying and obtainable by self-employed borrowers.

That means that irrespective of the caliber of your credit score, there is still a high likelihood of receiving private money for a real estate loan so long as your investment is presumed to be profitable, you have sufficient money to use for the downpayment, you have shown yourself capable in prior real estate ventures, you have considerable equity contained in the property or you can show a legitimate plan to repay the loan. And having fast closings of 14 days, private real estate mortgages in Princeton are an ideal solution for serious real estate investors.

Most real estate professionals use Princeton private mortgage lenders when:

1. A rehab or renovation can help to sell the house at a higher price point or charge additional rent.

   E.g. a past investor had a duplex. He already retained a significant amount of equity available in the building and the rent generated steady revenue. A handful of select home renovations would undoubtedly help him raise his rents, but having a bad credit score of 520, it was extremely probable for a bank to turn down his mortgage request. Accordingly, he turned to Read Rock Capital to obtain a cash-out refinance and obtained financing at 65% LTV.

2. They need to combine each of their debts into one payment.

   Multiple unsecured debts with a range of lending rates are incredibly overwhelming and difficult to keep tabs on. Because of this, a lot of people choose to make the most of the equity available in their property to combine all of their debts into just one mortgage loan having a single monthly payment.

3. They would like to unlock the equity in one home and use it to acquire a different one.

   One of our customers in Hawaii owned a home valued at $1M. His plans to sell the house never materialized and he finally was forced to be content with leasing the home to someone, with the option to buy at a future date. The rental agreement income served to meet his existing mortgage, property taxes and insurance. Additionally, he received a $200k non-refundable advance payment for the three year lease. Using these sureties to handle the property's bills on an ongoing basis, he phoned Read Rock Capital for a seventy percent LTV private mortgage loan to aid in his subsequent investment. This enabled him to make the downpayment for the new investment, and at the same time pay down his present mortgage.

4. The balloon payment for a prior loan is owed soon and they cannot afford it.

   If an unexpected incident hinders someone from meeting his balloon payment deadline, he can find a new mortgage company to refinance. Refinancing right before the term date helps you to make the deadline for the balloon payment and stay clear of penalties in connection with failing to pay the balloon payment.

Wanting to connect with a private mortgage lender in Princeton to go over funding options for your upcoming real estate investment? Fill out the form on this page or give us a call and let's discuss the property or properties you have in mind.