Private real estate financing entails finding a short-term mortgage through a private company or individual as a way to purchase, perform improvements on or refinance a property. Although typical lenders, for example, banks have an extended, time consuming application process and are more than likely to think twice about lending money to a self-employed borrower, private mortgage loans in Smithfield close fast and are easy qualifying.

Thus, in case you don't have good credit, having a real estate opportunity with promise for profits, a substantial downpayment, past experience in real estate, and a clear-cut exit strategy are a great deal more crucial when being qualified for private money for a real estate loan. And having fast closings of 2 weeks, private real estate mortgages in Smithfield may very well be the perfect solution for serious real estate investors.

In general, people get in touch with a private mortgage lender in Smithfield when:

1. They want to update or fix up the home to enable them to sell it at a much higher price point or to charge higher monthly rental fees.

   To illustrate, one of our customers owned a duplex. At the time, he had a good deal of equity in the house and the rent payments delivered steady revenue. Though a few enhancements to the units may have helped him command more rent, a bank would likely have turned down the loan request, because his credit score was a mere 520. Thus, he came to Read Rock Capital for a cash-out refinance and received a loan at 65% LTV.

2. They would like to combine their personal debts.

   Many of us think it is stressful to manage multiple payments each month. This is the reason a lot of people make the decision to utilize the equity in their property to combine each of their outstanding debts into just one mortgage with a lone payment per month.

3. They wish to utilize their home's equity for a different home purchase.

   For example, a customer located in Hawaii owned his residence which was valued at $1,200,000. When he could not secure a buyer for his property, he entered into a lease-option-to-buy contract with an interested party. The amount of rent was adequate to pay for the cost of his monthly mortgage bill, property taxes and insurance obligations. The renter also went ahead and paid him $200,000 as a deposit for a 3-year lease. These sureties meant he no longer had to be concerned with the home's ongoing expenses, so when another great real estate opportunity showed up, he reached out to Read Rock Capital and got a private mortgage loan at 70% LTV. The loan helped him finance a new investment and also repay his original mortgage.

4. They already have a preexisting private loan and are not able to afford the pending balloon payment.

   If a borrower can't pay a balloon payment as a result of unforeseen factors, he can try and refinance the loan with a new lender. A cash-out refinance will help the person pay the balloon payment and evade consequences.

Looking to meet a private mortgage lender in Smithfield to discuss financing alternatives for your upcoming real estate investment? Complete the contact form or get in touch with us via phone and let's discuss the property or properties you have in mind.