Private real estate financing helps investors purchase, fix up or refinance a home via a short-term mortgage from a privately owned company or an individual. While conventional lending institutions, for example, banks require an extended, drawn out application process and in all likelihood will hesitate to loan money to a self-employed individual, private mortgage loans in Shoreview close fast and have minimal eligibility requirements.

That's why, even if you have poor credit, having a real estate opportunity with promise for profits, a considerable down payment, prior experience, and a clear-cut exit strategy are more relevant in terms of being eligible for private money for a real estate loan. Combined with fast closings of two weeks, private real estate mortgages in Shoreview may very well be the ideal choice for ambitious real estate investors.

Most real estate professionals turn to Shoreview private mortgage lenders when:

1. They would like to update or repair the home to enable them to market it at an increased price point or to bring in higher monthly rental fees.

   Real example: one of our clients operated a two-unit rental. He had plenty of equity available in the asset and the rent generated regular income each month. A few choice home enhancements would help him raise his rents, but because of a low credit score of 520, it was very probable for a bank to turn down the mortgage request. After he got in touch with Read Rock Capital to get financing, we were pleased to complete a cash-out refinance at 65% of the duplex's value.

2. They would like to consolidate financial debts.

   Numerous unsecured debts with a variety of rates are often very overwhelming and tough to keep tabs on. This is the reason some people opt to utilize the equity available in their residence to consolidate their financial debts into just one loan which has a single payment per month.

3. They would like to employ the equity in one home or property and use it to buy a different one.

   As an illustration, a client located in Hawaii owned a house valued at $1.2M. When he was not able to procure a buyer for the home, he entered into a lease-option-to-buy arrangement with somebody. The amount of rent was more than enough to handle his regular mortgage payment, taxes and insurance payments. He also received a two hundred thousand dollars non-refundable down payment for the three year lease contract. Having these sureties to cover the house's foreseeable financial obligations, he ran across another promising investment opportunity and got into contact with Read Rock Capital to obtain a private mortgage loan nearly seventy percent of the property's value. Meaning that he was able to make a downpayment for the new investment, and also pay down his current mortgage.

4. The balloon payment for a previous loan is due and they cannot handle it.

   A real estate investor who already has an existing private mortgage and is unable to pay for the balloon payment as a result of a change of circumstances can fill out an application for refinancing from a new lending company. A refinance will help him hit the cut-off date for the balloon payment and avoid fines.

Wanting to meet a private mortgage lender in Shoreview to talk about funding options for your upcoming project? Enter your info into the contact form on this page or call us to discuss the property you have in mind.