Private real estate financing helps investors buy, remodel or refinance a property or home using a short-term loan from a privately owned business or an individual. Whereas typical lending institutions such as banks will require a prolonged, drawn out application process and are more than likely to think twice about lending money to a self-employed individual, private mortgage loans in Scarborough close fast and are easy qualifying.

This is fantastic news for real estate investors because a person with weak credit can obtain a private money for a real estate loan given that he has a promising deal, he has enough cash for a downpayment, he has proven himself capable in real estate, and he has a plan for an exit strategy. Combined with fast closings of only 2 weeks, private real estate mortgages in Scarborough may very well be the perfect alternative for serious real estate investors.

Mostly, people ask Scarborough private mortgage lenders to supply capital for their endeavors when:

1. They want money to repair a property and offer it for a much higher price or to rent it out for more money.

   As an illustration, one of our customers owned a 2-family rental. He had an abundance of equity in the house and the rent checks brought in routine income each month. While a few enhancements to the place might have enabled him to command more rent, a bank would definitely have turned down the loan request, because he had a credit score of a mere 520. Shortly after he got into contact with Read Rock Capital for financing, we were happy to do a cash-out refinance at 65% of the house's appraised value.

2. They would like to combine unpaid debts.

   Countless unsecured debts with various rates can be extremely overwhelming and difficult to manage. This is why many people opt to make the most of the equity available in their home to combine all of their unsecured debts into one mortgage which has a lone payment per month.

3. They prefer to utilize their property's equity for another home purchase.

   As an illustration, a borrower located in Hawaii owned a house valued at $1,200,000. His plans to sell the house didn't happen and he finally had to be satisfied with leasing the place to an interested party, with an option to purchase it at a future date. The rental agreement payments made it possible to meet his existing mortgage, property taxes and homeowner's insurance. He also was given a $200k non-refundable deposit for the 3 year contract. With these assurances to take care of the property's foreseeable bills, he came across a new real estate investment opportunity and got into contact with Read Rock Capital to obtain a private mortgage loan around seventy percent of the home's valuation. The loan helped him pay for a new investment property as well as pay off his primary mortgage.

4. The balloon payment for an existing mortgage is owed soon and they cannot pay it.

   If an unforeseen mishap hinders a borrower from meeting his balloon payment deadline, he could find a new mortgage lender to refinance. A cash-out refinance can help you make the balloon payment and escape penalty.

Trying to find a private mortgage lender in Scarborough to fund your investment purchase? Enter your info into the form on this page or call us to talk about your project.