Private real estate financing can help investors purchase, remodel or refinance a home via a short-term mortgage from a privately owned company or an individual. St Joseph private mortgage loans have many advantages — they are fast closing, easy qualifying and additionally, are available for self-employed applicants.

Meaning that irrespective of the caliber of your credit score, there is still a high likelihood of obtaining private money for a real estate loan as long as your project is deemed to be profitable, you have adequate capital reserved for the downpayment, you have shown yourself competent in the real estate market in the past, you have sizeable equity contained in the home or property or you have a clear plan to pay back the balance of the loan. And with fast closings of just fourteen days, private real estate mortgages in St Joseph may very well be the perfect solution for serious real estate investors.

In most cases, people pay a visit to St Joseph private mortgage lenders to fund their real estate activities when:

1. They wish to renovate or repair the property in order to market it at an increased price or to get higher monthly rental fees.

   By way of example, we had this client who owned a two-unit rental property. He already retained plenty of equity available in the building and the rent payments delivered steady revenue. He sought to do some upgrades to the property to be able to maintain high rents, but a low credit score of 520 meant that a bank would turn down the mortgage request. Shortly after he approached Read Rock Capital to obtain a mortgage, we were glad to complete a cash-out refinance for 65% of the duplex's appraised value.

2. They need to combine their debts.

   Many people find it stressful to make numerous payments each and every month. To make the situation more manageable, some people combine all of their financial debts into only one loan with just one payment per month.

3. They prefer to release the existing equity in one home or property and buy another one.

   For example, a client in Hawaii owned a house valued at $1.2M. Though it was difficult for him to secure a purchaser for his home, he had identified a person that was open to lease it with the option to purchase it. The rental agreement income made it possible to meet his existing mortgage payment, taxes and insurance. The renter also included $200k for a non-refundable advance payment as part of signing the 3-year agreement. Using these assurances to cover the home's monthly payments on a regular basis, he contacted Read Rock Capital to obtain a 70% loan-to-value private mortgage loan to aid in his subsequent real estate investment. Meaning that he could make the downpayment for his next property, and also help with his present mortgage.

4. The balloon payment for their current private mortgage is owed soon and they can not pay it.

   A real estate investor who currently has an existing private loan and isn't able to pay for the balloon payment thanks to a change in circumstances can fill out an application for refinancing from an alternative lending company. Refinancing before the due date helps you to make the due date for the balloon payment and stay clear of penalties related to failing to make the balloon payment.

Wanting to meet a private mortgage lender in St Joseph to discuss loan programs for your next real estate investment? Enter your info into the contact form on this page or give us a call and let's discuss the property you have in mind.