Private real estate financing means finding a short-term loan from a privately owned business or individual in order to purchase, perform upgrades on or refinance a property. Whereas standard lenders, for example, banks will require a lengthy, drawn out application process and are more than likely to be reluctant to loan money to a self-employed individual, private mortgage loans in Richmond close fast and have minimal eligibility criteria.

So even if you have poor credit, having a promising real estate opportunity, a sizeable down payment, previous experience, and a clear-cut exit strategy are a great deal more crucial when being qualified for private money for a real estate loan. Furthermore, if you are looking for a fast closing, you won't see any alternatives better than Richmond private real estate mortgages.

In most cases, clients pay a visit to Richmond private mortgage lenders to lend money for their real estate activities when:

1. A rehab or update will help them market the house for a much higher price point or get additional rent.

   One example is a client who owned a two-unit rental property. He had plenty of equity available in the building and the rent brought in routine income each month. Although some upgrades to the units may have helped him collect higher rent, a bank would definitely have turned down the loan application, given that his credit score was only 520. So he turned to Read Rock Capital to get a cash-out refinance and acquired financing at 65% LTV.

2. They're stuck with multiple unsecured debts and desire to consolidate them.

   The majority of people think it is stressful to deal with multiple payments on a monthly basis. Because of this, many people make the decision to make use of the equity available in their residence to merge all of their financial debts into just one mortgage which has a lone monthly payment.

3. They would like to capitalize on the existing equity available in their current house to work on an additional real estate investment.

   Here is an example. A client located in Hawaii had his residence which was valued at $1.2M. When he could not find a buyer for the property, he agreed to a lease-option-to-buy deal with someone. The rent amount was more than enough to pay for his ongoing mortgage payment, property taxes and homeowner's insurance payments. The renter also went ahead and paid two hundred thousand dollars in the form of an advance payment for a 3-year contract. Having these assurances to pay for the home's foreseeable expenses, he came across a new investment opportunity and got in touch with Read Rock Capital for a private mortgage loan around 70% of the home's appraised value. Meaning that he was able to make his deposit for his next property, and also repay his existing mortgage.

4. They have a previous mortgage and are not able to pay the looming balloon payment.

   If someone cannot meet a balloon payment resulting from unanticipated factors, he can make an effort to refinance his loan with a different loan provider. A refinance will help him hit the cut-off date for the balloon payment and avoid fees and penalties.

Hoping to discuss financing programs with a private mortgage lender in Richmond? Fill out the contact form or give us a call and let's discuss your property or properties.