Private real estate financing entails getting a short-term mortgage via a private business or individual to be able to buy, carry out improvements on or refinance a home or property. Richmond private mortgage loans have many advantages — they close fast, are easy to qualify for and additionally, are open to self-employed borrowers.

That's great for real estate investors because somebody with weak credit can qualify for private money for a real estate loan given that he has a promising project, he has plenty of cash for a down payment, he has demonstrated himself competent in the real estate market, and he has a plan for an exit strategy. Combined with fast closings of only 14 days, private real estate mortgages in Richmond are the right solution for serious real estate investors.

Most real estate investors talk with Richmond private mortgage lenders when:

1. They want to find capital to fix up a house and market it at a higher price or to up the lease amount for renters.

   Real example: one of our applicants held a two-unit rental property. He'd already built up ample equity available in the asset and the rent was a routine source of income. A few select home upgrades would help him bump up the cost of rent, but because of a below average credit score of 520, it was highly certain that a bank would turn down the mortgage application. For that reason, the client called Read Rock Capital (Read Rock Capital) to complete a cash-out refinance that in turn gave him a loan for 65% of the home's valuation.

2. They need to combine each of their financial debts into a single payment.

   Numerous outstanding debts with a variety of lending rates are very overwhelming and difficult to keep tabs on. Due to this, numerous people get a loan against their home's equity to consolidate all their debts into just one loan.

3. They would like to utilize the existing equity in their existing home to do an additional real estate investment.

   One of Island View's customers located in Hawaii owned a property valued at $1M. He wanted to sell the house but that did not happen and he eventually had to be content with leasing the property, with the option to buy at a future time. The income that came from the rental payments took care of his monthly mortgage payment, home owner's insurance, and property taxes. The person also consented to pay two hundred thousand dollars as a down payment for a 3 year agreement. Using these assurances to handle the property's monthly payments on a regular basis, he contacted Read Rock Capital to obtain a seventy percent loan-to-value private mortgage loan to help with his subsequent investment. This allowed him to pay an advance on the down payment for his next investment, and at the same time pay down his present mortgage.

4. The balloon payment for their current private mortgage is owed soon and they cannot afford it.

   A person who invests in real estate and has a previous private mortgage loan and cannot pay for the balloon payment caused by a change of circumstances can submit an application for refinancing from another lending company. A refinance can help him avoid missing the due date for the balloon payment and steer clear of any penalty charges.

Want to discuss your mortgage options with a private mortgage lender in Richmond? Complete the contact form or get in touch with us via phone to discuss your property or properties.