Private real estate financing entails getting a short-term mortgage loan via a privately owned business or individual as a way to buy, carry out upgrades on or refinance a property. Unlike loans from banks, Rahway private mortgage loans close fast, are easy to qualify for and open to self-employed borrowers.

That's a good thing for real estate investors because even somebody with lousy credit can qualify for private money for a real estate loan given that he has a promising deal, he has sufficient cash for a downpayment, he has demonstrated himself capable in real estate, and has a good exit strategy. Combined with fast closings of only 14 days, private real estate mortgages in Rahway may very well be the right choice for real estate investors.

Often, borrowers rely upon Rahway private mortgage lenders to finance their projects when:

1. They want capital to remodel a property or home and offer it for a higher price or to rent it out for more money.

   E.g. one of our customers had a duplex. He had an abundance of equity in the building and the rent checks brought in routine monthly income. He desired to do some upgrades to the property to help maintain high rents, but a below average credit score of 520 meant a bank would undoubtedly turn down his loan request. Thus, he came to Read Rock Capital to do a cash-out refinance and acquired financing at 65% LTV.

2. They're stuck with numerous debts and desire to combine them.

   Most people find it stressful to make countless payments each and every month. To help make the situation more manageable, people combine their outstanding debts into an individual mortgage loan with just one payment per month.

3. They would like to allocate their equity in one home or property and invest in a different one.

   As one example, a client in Hawaii owned a house appraised at $1,200,000. When he could not find a buyer for his home, he entered into a lease-option-to-buy contract with somebody. The rent checks were adequate to pay for his regular mortgage payment, property taxes and cost of insurance. He also was given a $200,000 non-refundable advance payment for the 3-year agreement. The signed agreement meant he no longer needed to be concerned about the property's future expenses, and so when a new real estate investment opportunity came up, he came to Read Rock Capital and got a private mortgage loan at 70% loan to value. The money helped him afford a different investment as well as pay down his initial mortgage.

4. The balloon payment for their current private mortgage is owed soon and they can not handle it.

   A person who invests in real estate and has a previous private mortgage and is not able to afford the balloon payment caused by a change of circumstances can fill out an application for refinancing from a new loan company. A cash-out refinance will help the person complete the balloon payment and escape fines.

Hoping to find a private mortgage lender in Rahway to finance your real estate investment? Submit the form or give us a call to discuss the property or properties you have in mind.