Private real estate financing can help investors buy, fix up or refinance a property utilizing a short-term mortgage loan from a private company or an individual. While traditional lending institutions, for example, banks require a prolonged, drawn out application process and in all likelihood will think twice about giving money to a self-employed applicant, private mortgage loans in Southfield close fast and are easy to qualify for.

Meaning that even if you don't have a great credit score, there is still a high likelihood of receiving private money for a real estate loan assuming that your project is regarded as profitable, you have sufficient money to set aside for the downpayment, you have proven yourself competent in the real estate market in the past, you have sizeable equity contained in the property or home or you can show a well-defined plan to pay off the loan. And having fast closings of only 2 weeks, private real estate mortgages in Southfield may very well be the perfect solution for serious real estate investors.

Most often, customers consult Southfield private mortgage lenders to supply capital for their endeavors when:

1. A remodeling job or restoration can help them sell the house for a much higher price or bring in more rent.

   For instance, we had this borrower who owned a 2-family rental property. He already retained a lot of equity available in the house and the monthly rent delivered steady cash flow. A handful of select home improvements would allow him to bump up his rents, but since he had a bad credit score of 520, it was extremely probable for a bank to turn down his loan application. When he contacted Read Rock Capital to obtain a loan, we were able to do a cash-out refinance for 65% of the duplex's assessed value.

2. They wish to combine financial debts.

   Multiple unsecured debts with different interest rates are often rather overwhelming and hard to keep tabs on. This is why many people opt to make use of the equity available in their property to merge each of their debts into one mortgage having a lone payment per month.

3. They would like to take advantage of the equity available in a current property to work on an additional real estate project.

   One of Island View's borrowers in Hawaii owned a residence worth $1M. Because it was tough for him to find a buyer for the house, he had someone that was open to lease it having an option to purchase it. The cash that stemmed from the rental payments took care of his continuing mortgage payment, insurance, and property taxes. In addition, he received a two hundred thousand dollars non-refundable down payment for the 3-year lease agreement. With these assurances to take care of the property's foreseeable bills, he discovered another great real estate opportunity and approached Read Rock Capital to obtain a private mortgage loan close to 70% of the property's valuation. This let him pay an advance on the deposit for his next property, and at the same time pay down his current mortgage.

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

   If an unanticipated mishap hinders someone from hitting his balloon payment deadline, he could seek out a different company to refinance. Refinancing prior to the due date enables you to make the deadline for the balloon payment and avoid fees and penalties associated with failing to make the balloon payment.

Hoping to make contact with a private mortgage lender in Southfield to discuss financing alternatives for your next project? Enter your info into the form on this page or get in touch with us via phone and let's discuss your project.