Private real estate financing helps investors buy, renovate or refinance a property via a short-term loan from a privately owned firm or an individual. Whereas traditional lending institutions, for example, banks require an extended, drawn out application process and in all likelihood will think twice about loaning money to a self-employed applicant, private mortgage loans in Raytown close fast and are easy qualifying.

That means that even if your credit score recently went through the wringer, there is still a strong likelihood of receiving private money for a real estate loan provided that your project is presumed to be profitable, you have enough capital to set aside for the down payment, you have shown yourself capable in the real estate market in the past, you have considerable equity contained in the home or property or you have a clear-cut plan to pay off the loan. And with fast closings of two weeks, private real estate mortgages in Raytown are the right alternative for serious real estate investors.

Generally, customers contact a private mortgage lender in Raytown when:

1. A rehab or renovation can help them sell the house for a much higher price or get significantly more rent.

   One example is a client who held a 2-family rental. At the time, he retained a good deal of equity available in the house and the rent payments generated steady income. He sought to perform some upgrades to the units in order to keep his rents high, but a poor credit score of 520 meant a bank would turn down his loan application. When he got in touch with Read Rock Capital for financing, we were happy to do a cash-out refinance at 65% of the home's valuation.

2. They've got numerous outstanding debts and need to combine them.

   Many people think it is stressful to take care of countless payments each and every month. As a result, many individuals borrow against a property's equity to consolidate their debts into one loan.

3. They wish to make use of the equity available in their current home and property to work on an additional real estate project.

   One of our borrowers located in Hawaii owned a house valued at $1M. When he was not able to find a buyer for the house, he signed a lease-option-to-buy deal with an interested party. The funds that came from the rent took care of his regular mortgage bill, insurance, and taxes. The tenant additionally included two hundred thousand dollars towards a non-refundable deposit when he signed the three year agreement. With these assurances handling the home's expenses on a regular basis, he approached Read Rock Capital for a seventy percent LTV private mortgage loan for his subsequent purchase of an investment property. This allowed him to make the downpayment for the new property, and furthermore repay his existing mortgage.

4. The balloon payment for a prior mortgage is owed soon and they are not able to afford it.

   A person who invests in real estate and already has an existing private mortgage and is not able to pay for the balloon payment caused by a change of circumstances can apply for refinancing from an alternative company. A cash-out refinance will help you pay the balloon payment and escape penalty.

Hoping to connect with a private mortgage lender in Raytown to go over financing alternatives for your upcoming project? Fill out the contact form or call us and let's discuss your property or properties.