Private real estate financing involves finding a short-term mortgage loan via a privately owned company or individual to be able to buy, perform improvements on or refinance a home. Unlike bank loans, Sterling Heights private mortgage loans are fast closing, have minimal eligibility criteria and accessible to self-employed borrowers.

That's good for real estate investors considering that somebody with bad credit can opt for private money for a real estate loan assuming that he has a promising deal, he has adequate money for a downpayment, he has demonstrated himself able in the real estate market, and he can show a plan for an exit strategy. And having fast closings of just two weeks, private real estate mortgages in Sterling Heights are the right solution for real estate investors.

Often, clients talk to Sterling Heights private mortgage lenders to finance their real estate activities when:

1. They want to find capital to fix up a home and property and offer it at a much higher price or to rent it out for more money.

   E.g. one of our customers owned a duplex. He'd already built up ample equity in the house and the monthly rent checks was a regular revenue stream. While several improvements to the place might have enabled him to collect more rent, a bank would most likely have turned down the loan request, given that his credit score was down at 520. So the client got into contact with Read Rock Capital (Read Rock Capital) to execute a cash-out refinance that in turn provided him financing for 65% of the home's valuation.

2. They wish to merge their debts into a single payment.

   Countless unsecured debts with various interest rates are very overwhelming and hard to keep tabs on. This is why some people choose to take advantage of the equity in their residence to combine each of their financial debts into a single private mortgage loan with a lone payment per month.

3. They would like to make use of the existing equity available in their existing home and property to work on a different real estate investment.

   As one example, a borrower in Hawaii owned a house valued at $1.2M. When he could not procure a buyer for his home, he entered into a lease-option-to-buy contract with someone. The rental agreement payments made it possible to meet his existing mortgage payment, property taxes and homeowner's insurance. The renter additionally put two hundred thousand dollars towards a non-refundable downpayment as part of signing the three year lease contract. Using these sureties to take care of the property's bills on a recurring basis, he approached Read Rock Capital for a seventy percent loan-to-value private mortgage loan for his next purchase of an investment property. Meaning that he could make a down payment for the new property, and also pay down his present mortgage.

4. The balloon payment for an existing loan is due and they cannot handle it.

   A real estate investor who has a prior private mortgage loan and isn't able to afford the balloon payment thanks to a change in circumstances can fill out an application for refinancing from a different lender. A cash-out refinance helps you pay the balloon payment and escape fines.

Interested in discussing financing programs with a private mortgage lender in Sterling Heights? Submit the contact form or get in touch with us via phone and let's talk about the property or properties you have in mind.