Private real estate financing can help investors buy, remodel or refinance a home or property via a short-term loan from a private business or an individual. Unlike bank loans, Red Lodge private mortgage loans close fast, are easy to qualify for and open to self-employed customers.

Thus, even if you don't have very good credit, having a promising real estate opportunity, a significant down payment, previous experience, and a good exit strategy are much more crucial when it comes to being qualified for private money for a real estate loan. Combined with fast closings of only 14 days, private real estate mortgages in Red Lodge may very well be the right alternative for real estate investors.

Usually, clients approach a private mortgage lender in Red Lodge when:

1. They're looking for money to repair a home and offer it for sale at a higher price or to up the lease amount for tenants.

   As an illustration, one of our applicants operated a 2-unit rental. He previously built up sufficient equity available in the house and the monthly rent checks was a routine source of income. Although some upgrades to the place would've helped him command higher rent, a bank would undoubtedly have turned down the loan application, since his credit score was only 520. Accordingly, he turned to Read Rock Capital for a cash-out refinance and obtained a loan at 65% LTV.

2. They want to consolidate debts.

   Countless unsecured debts with different rates are very overwhelming and difficult to keep track of. Due to this, numerous people get a loan against their home equity to combine all of their debts into just one loan.

3. They want to capitalize on the existing equity available in their existing home and property to do an additional project.

   By way of example, one of Island View's past clients located in Hawaii had a property appraised in excess of a million dollars. When he could not find a buyer for his house, he agreed to a lease-option-to-buy arrangement with an interested party. The amount of rent was more than enough to take care of his monthly mortgage payment, property taxes and insurance obligations. In addition, he received a two hundred thousand dollars non-refundable down payment for the 3-year lease agreement. With the help of these sureties to cover the property's foreseeable expenses, he discovered a new real estate investment opportunity and got in touch with Read Rock Capital to obtain a private mortgage loan around seventy percent of the property's appraised value. The borrowed funds helped him put enough money towards a different investment property and also pay down his original mortgage.

4. They have an existing mortgage and cannot afford the looming balloon payment.

   A real estate investor who already has an existing private mortgage loan and is not able to afford the balloon payment caused by a change in circumstances can apply for refinancing from a different loan company. Refinancing ahead of the due date helps the borrower to make the deadline for the balloon payment and stay clear of penalty charges associated with missing the balloon payment.

Hoping to discuss your investment options with a private mortgage lender in Red Lodge? Submit the form or call us to talk about your project.