Private real estate financing helps investors pay for, renovate or refinance a home via a short-term loan from a private firm or an individual. Shakopee private mortgage loans have many advantages — they are fast closing, easy qualifying and additionally, are open to self-employed individuals.

That is a good thing for investors since somebody with bad credit can qualify for private money for a real estate loan given that he has a project that shows promise, he has enough cash for a down payment, he has proven himself able in the real estate market, and he can show a preplanned exit strategy. In addition, the fast closing Shakopee private real estate mortgages give you financing right away, allowing you to close on a deal within two to three weeks.

Most real estate investors turn to Shakopee private mortgage lenders when:

1. They're looking for capital to renovate a property or home and put it up for sale for a much higher price point or to up the lease amount for tenants.

   One example is a customer who operated a 2-unit rental. He held a great deal of equity available in the asset and the rent checks generated routine monthly income. A number of select home upgrades would undoubtedly help him bump up his rental prices, but having a low credit score of 520, it was very probable that a bank would turn down the loan application. So the client contacted Read Rock Capital (Read Rock Capital) to execute a cash-out refinance which in turn got him financing for 65% of the home's valuation.

2. They have multiple outstanding debts and prefer to combine them.

   Many of us know how stressful it is to manage countless payments each month. In order to arrange a more manageable situation, some people consolidate all of their outstanding debts into one single line of credit with just one payment per month.

3. They want to employ the existing equity in one house and purchase a different one.

   One of our borrowers in Hawaii had a house valued at $1.2 million. His idea was to sell the house but it didn't work out and he finally was forced to be content with leasing the place to an interested party, with an option to purchase it at a later time. The rental agreement payouts served to meet his current mortgage payment, taxes and insurance. He also received a two hundred thousand dollars non-refundable deposit for the three year lease agreement. Having these assurances to take care of the house's foreseeable bills, he came across a new real estate investment opportunity and approached Read Rock Capital for a private mortgage loan close to 70% of the property's estimated value. This gave him ample money to put towards a down payment on his next home, but also helped him deal with the current mortgage.

4. They want help to satisfy the balloon payment for the current loan.

   A person who invests in real estate and has a previous private mortgage and is not able to pay for the balloon payment on account of a change in circumstances can fill out an application for refinancing from an alternative lender. A refinance will help him hit the due date for the balloon payment and steer clear of any consequences.

Planning to discuss your mortgage alternatives with a private mortgage lender in Shakopee? Enter your info into the form on this page or call us to talk about your property.