Private real estate financing can help investors pay for, renovate or refinance a property utilizing a short-term loan from a private company or an individual. Contrary to loans from banks, St Louis private mortgage loans are fast closing, have minimal eligibility criteria and open to self-employed customers.

That means that regardless of whether you have a good credit score, you've still got a good chance of qualifying for private money for a real estate loan assuming that your investment is viewed to be profitable, you have adequate capital to put towards the downpayment, you have shown yourself capable in prior real estate projects, you have substantial equity contained in the property or you have a legitimate plan to pay back the loan. And with fast closings of just two weeks, private real estate mortgages in St Louis are an ideal choice for serious real estate investors.

Usually, investors get a hold of a private mortgage lender in St Louis when:

1. They are searching for money to repair a property and offer it at a higher price or to up the lease amount for tenants.

   By way of example, we had a borrower who owned a two-unit rental property. He'd already built adequate equity in the property and the rent payments was a regular revenue stream. While a few improvements to the units may have enabled him to command more rent, a bank would undoubtedly have turned down the loan request, because his credit score was down at 520. So he reached out to Read Rock Capital for a cash-out refinance and received financing at 65% LTV.

2. They wish to merge all of their debts into one loan.

   Most people find it stressful to make numerous payments each month. Due to this, many individuals get a loan from their home's equity to merge each of their outstanding debts into one single loan payment.

3. They want to use their property's equity for some other home purchase.

   As one example, a homeowner located in Hawaii owned a house valued at $1,200,000. His plans to sell the house didn't work out and he ultimately had to be content with leasing the place to an interested party, with the option to buy at a future time. The funds that stemmed from the rent paid for his regular mortgage payment, home owner's insurance, and property taxes. The renter additionally included $200k towards a non-refundable down payment as part of signing the 3-year lease contract. These assurances meant he no longer needed to worry about the home's ongoing financial obligations, so when another great investment opportunity came up, he found Read Rock Capital and obtained a private mortgage loan at 70% LTV. The borrowed funds helped him finance a new investment and in addition, pay down his original mortgage.

4. The balloon payment for their current private mortgage is owed soon and they are not able to handle it.

   If a borrower is not able to make a balloon payment because of unforeseen causes, he can attempt to refinance his loan with another lender. A cash-out refinance helps you make the balloon payment and evade penalty.

Want to discuss financing programs with a private mortgage lender in St Louis? Enter your info into the contact form on this page or call us to talk about the property or properties you have in mind.