Numerous real estate investors depend on private real estate financing to pay for a new home or property, or renovate or refinance one they already have. Although traditional lending institutions such as banks have a prolonged, drawn out application process and are likely to hesitate to loan money to a self-employed borrower, private mortgage loans in Richmond close fast and have minimal eligibility criteria.

That is fantastic news for real estate investors since even anyone with lousy credit can apply for private money for a real estate loan as long as he has a promising project, he has plenty of cash for a downpayment, he has demonstrated himself able in prior real estate investments, and can show a plan for an exit strategy. And with fast closings of just fourteen days, private real estate mortgages in Richmond may very well be the perfect choice for real estate investors.

Most individuals depend on Richmond private mortgage lenders when:

1. They are searching for funds to fix up a house and sell it at a much higher price or to up the lease amount for renters.

   As an illustration, one of our customers held a 2-family rental property. He had an abundance of equity in the house and the rent payments brought in routine monthly income. He sought to complete some improvements to the property to be able to maintain high rents, but a poor credit score of 520 meant that a bank would turn down the loan request. Shortly after he got in touch with Read Rock Capital for financing, we were pleased to complete a cash-out refinance for 65% of the house's market value.

2. They wish to consolidate unpaid debts.

   Multiple debts with a range of lending rates are incredibly overwhelming and challenging to manage. Due to this, many individuals do a loan against a property's equity to consolidate their unsecured debts into a single loan.

3. They would like to release the equity in one home and purchase another one.

   As an illustration, a customer in Hawaii had his residence which was valued at $1.2M. When he was unable to secure a buyer for his house, he signed a lease-option-to-buy deal with somebody. The rental agreement payouts helped him meet his current mortgage expenses, property taxes and insurance. In addition, he was given a $200k non-refundable advance payment for the 3 year agreement. These sureties meant that he no longer had to concern himself with the home's ongoing expenses, and so when another great investment opportunity surfaced, he came to Read Rock Capital and obtained a private mortgage loan at 70% loan to value. The loan helped him put enough money towards his next investment property and in addition, pay down his primary mortgage.

4. They have an existing loan and are unable to pay the pending balloon payment.

   A person who invests in real estate and has a previous private mortgage loan and is not able to pay for the balloon payment thanks to a change of circumstances can submit an application for refinancing from another company. A refinance can help him avoid missing the due date for the balloon payment and avoid fees and penalties.

Hoping to meet a private mortgage lender in Richmond to discuss loan alternatives for your upcoming real estate investment? Enter your info into the contact form on this page or call us and let's talk about the project you have in mind.