Private real estate financing helps investors purchase, renovate or refinance a property using a short-term mortgage from a privately owned company or an individual. In contrast to loans from banks, Schenectady private mortgage loans are fast closing, easy qualifying and open to self-employed individuals.

This is great for real estate investors considering that even an individual with weak credit can qualify for private money for a real estate loan so long as he has a project that shows strong potential, he has adequate cash for a down payment, he has demonstrated himself competent in earlier real estate projects, and he can show a plan for an exit strategy. Additionally, the fast closing Schenectady private real estate mortgages ensure that you get funding right away, letting you close on a deal within weeks.

Most individuals use Schenectady private mortgage lenders when:

1. A remodeling job or renovation can help to market their property for a much higher price point or get extra rent.

   One example is a customer who operated a 2-family rental property. At the time, he had a significant amount of equity available in the building and the monthly rent delivered steady revenue. A number of choice home enhancements would undoubtedly help him increase the cost of rent, but with a lower credit score of 520, it was extremely likely that a bank would turn down the mortgage application. When he got in contact with Read Rock Capital to get financing, we were glad to complete a cash-out refinance for 65% of the house's value.

2. They want to consolidate unpaid debts.

   Countless outstanding debts with various interest rates are very overwhelming and tough to manage. On that basis, lots of people get a loan against a property's equity to combine all of their unsecured debts into a single manageable payment.

3. They would like to use their house's existing equity for a different home purchase.

   One of our customers in Hawaii had a house worth $1.2 million. Since it was hard for him to get a buyer for the place, he had identified a person who was willing to lease it with an option to buy. The cash that came from the rent took care of his ongoing mortgage payment, insurance, and taxes. Additionally, he received a $200,000 non-refundable deposit for the 3 year lease contract. Having these assurances to cover the home's expenses on an ongoing basis, he approached Read Rock Capital to get a 70% LTV private mortgage loan for his upcoming purchase of an investment property. This enabled him to pay an advance on the downpayment for his next investment, and furthermore helped with his present mortgage.

4. They need help to meet the balloon payment for a previous private loan.

   If a person is not able to meet a balloon payment because of unanticipated factors, he can seek to refinance his loan with a different loan company. A refinance will help the borrower hit the due date for the balloon payment and prevent any penalties.

Searching for a private mortgage lender in Schenectady to fund your real estate investment? Enter your info into the form on this page or get in touch with us via phone to discuss the property or properties you have in mind.