Private real estate financing entails finding a short-term loan through a private business or individual in order to purchase, perform improvements on or refinance a property. Although conventional lenders such as banks have a prolonged, time consuming application process and in all likelihood will think twice about loaning money to a self-employed individual, private mortgage loans in Saratoga close fast and have minimal eligibility criteria.

That means that irrespective of the caliber of your credit score, you've still got a high probability of receiving private money for a real estate loan provided that your project is viewed to be profitable, you have sufficient capital reserved for the downpayment, you have shown yourself competent in earlier real estate investments, you have significant equity in the property or home or you can show a clear plan to take care of the loan. In addition, Saratoga private real estate mortgages close fast to ensure that you get financing right away, allowing you to close on a deal within 2-3 weeks.

In most cases, borrowers rely on Saratoga private mortgage lenders to lend money for their real estate ventures when:

1. They are searching for funds to fix a home and offer it for sale at a much higher price point or to up the lease amount for tenants.

   E.g. one of our clients owned a duplex. He already retained a good deal of equity in the building and the rent delivered steady revenue. He desired to complete some improvements to the property to help keep his rents high, but a below average credit score of 520 meant that a bank would turn down the loan application. Consequently, the borrower got in contact with Read Rock Capital (Read Rock Capital) to complete a cash-out refinance that in turn provided him financing for 65% of the duplex's value.

2. They wish to merge all their debts into one single payment.

   Most people find that it's stressful to deal with countless payments each and every month. For this reason, a lot of people opt to make the most of the equity in their residence to consolidate their debts into one loan with a lone payment per month.

3. They want to utilize their house's equity for some other purchase.

   As an example, one of our clients in Hawaii had a place valued at more than a million dollars. He wanted to sell the house but that did not happen and he eventually had to settle for leasing the place to an interested party, with an option to buy at a later date. The cash that stemmed from the rent took care of his continuing mortgage bill, home owner's insurance, and taxes. In addition, he received a two hundred thousand dollars non-refundable advance payment for the 3 year lease. The signed agreement meant that he no longer had to worry about the property's future expenses, so when another promising real estate investment opportunity showed up, he found Read Rock Capital and obtained a private mortgage loan at 70% loan to value. This enabled him to pay an advance on the deposit for the new investment, and furthermore helped with his present mortgage.

4. The balloon payment for an existing loan is owed soon and they can not afford it.

   If an unanticipated incident stops a borrower from meeting his balloon payment deadline, he could approach a different mortgage lender to refinance. Refinancing ahead of the due date enables the borrower to meet the deadline for the balloon payment and avert any penalty charges related to failing to pay the balloon payment.

Wanting to connect with a private mortgage lender in Saratoga to discuss funding alternatives for your next investment? Fill out the form or give us a call and let's talk about your property.