Private Real Estate Mortgages in Richfield

Private real estate financing involves obtaining a short-term loan through a private company or individual as a way to buy, perform improvements on or refinance a property or home. Whereas traditional lending institutions such as banks necessitate a prolonged, drawn out application process and in all likelihood will hesitate to give money to a self-employed borrower, private mortgage loans in Richfield close fast and have minimal eligibility criteria.

That is fantastic news for real estate investors because even a person with weak credit can qualify for private money for a real estate loan so long as he has a promising deal, he has sufficient cash for a down payment, he has demonstrated himself able in the real estate market, and can show a preplanned exit strategy. What's more, Richfield private real estate mortgages close fast to grant you funding right away, allowing you to close a deal within a few short weeks.

Typically, customers get a hold of a private mortgage lender in Richfield when:

  1. A rehab or update will make it possible to market their property at a much higher price point or charge more rent.

    For instance, we had this borrower with a 2-family rental property. He had already built considerable equity available in the asset and the rent payments was a routine source of income. Some select home improvements would allow him to raise his rental prices, but because of a lower credit score of 520, it was highly certain for a bank to turn down the mortgage application. Shortly after he approached Read Rock Capital to obtain a mortgage, we were glad to complete a cash-out refinance for 65% of the duplex's assessed value.

  2. They want to combine all of their financial debts into one loan.

    Multiple unsecured debts with varying interest rates can be extremely overwhelming and difficult to keep tabs on. For this reason, numerous people decide to take advantage of the equity in their property to merge all their financial debts into a single mortgage which has a lone monthly payment.

  3. They prefer to allocate the equity in one property or home and use it to purchase another one.

    Here is an example. A customer located in Hawaii owned a home appraised at $1,200,000. When he could not procure a buyer for his home, he entered into a lease-option-to-buy arrangement with an interested party. The cash that came from the rent took care of his ongoing mortgage expenses, insurance, and taxes. The renter also consented to pay him $200,000 for a downpayment for a 3-year agreement. Using these assurances to cover the home's monthly payments on an ongoing basis, he phoned Read Rock Capital to obtain a 70% LTV private mortgage loan to aid in his subsequent investment. This allowed him to make the deposit for his next investment, and furthermore pay down his current mortgage.

  4. The balloon payment for a preexisting mortgage is owed soon and they can not handle it.

    A real estate investor who already has an existing private mortgage loan and is not able to pay for the balloon payment caused by a change in circumstances can fill out an application for refinancing from a different company. Refinancing ahead of the term date allows you to meet the due date for the balloon payment and stay clear of fines associated with failing to pay the balloon payment.

Are you searching for a private mortgage lender in Richfield to help you afford your real estate investment? Submit the contact form or give us a call and let's discuss your property or properties.

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Investment property loans only please, no primary residences at this time.