A lot of real estate investors use private real estate financing to purchase a new home or property, or remodel or refinance one they already have. While conventional lending institutions, for example, banks require an extended, drawn out application process and are more than likely to hesitate to loan money to a self-employed customer, private mortgage loans in Somerville close fast and are easy qualifying.

It means that irrespective of the level of your credit score, you still have a high probability of getting private money for a real estate loan assuming that your real estate project is presumed to be profitable, you have adequate money to set aside for the downpayment, you have proven yourself capable in the real estate market in the past, you have significant equity in the property or home or you can show an intelligible plan to repay the loan. In addition, the fast closing Somerville private real estate mortgages ensure that you get financing without delay, helping you close on a deal within weeks.

Normally, investors seek out a private mortgage lender in Somerville when:

1. They are in need of money to fix a home and property and market it for a higher price point or to up the lease amount for renters.

   Real example: one of our customers operated a 2-family rental property. He had enough equity available in the property and the rent payments brought in regular income each month. A number of choice home enhancements would help him increase his rents, but because of a poor credit score of 520, it was highly probable that a bank would turn down his mortgage application. Shortly after he contacted Read Rock Capital for a loan, we were pleased to complete a cash-out refinance at 65% of the house's value.

2. They need to combine unpaid debts.

   Many of us find that it's stressful to make numerous payments on a monthly basis. To make the situation more reasonable, some people merge each of their debts into a single line of credit with only one monthly payment.

3. They want to take advantage of the existing equity in an existing property or home to do a different real estate project.

   One of Island View's borrowers in Hawaii had a property worth $1M. Because it was challenging for him to get an interested party for the property, he had a person that was ready to lease it having the option to buy. The amount of rent was enough to cover his regular mortgage payment, property taxes and homeowner's insurance payments. The tenant also included $200,000 in the form of a non-refundable downpayment as part of signing the three year lease. Having these sureties to cover the home's financial obligations on a regular basis, he approached Read Rock Capital to get a seventy percent loan-to-value private mortgage loan to aid in his subsequent investment. This gave him plenty of capital to use for a down payment on his next home, but also helped him repay the current mortgage.

4. They already have a preexisting mortgage and cannot afford the pending balloon payment.

   A real estate investor who has a previous private mortgage and is unable to pay for the balloon payment because of a change of circumstances can submit an application for refinancing from another lending company. Refinancing right before the due date enables the borrower to meet the deadline for the balloon payment and avert any penalty charges associated with missing the balloon payment.

Hoping to make contact with a private mortgage lender in Somerville speak about loan programs for your upcoming project? Fill out the contact form or call us to discuss the property you have in mind.