Private real estate financing helps investors purchase, renovate or refinance a home or property utilizing a short-term mortgage loan from a privately owned firm or an individual. While standard lenders, for example, banks have a lengthy, time consuming application process and are likely to hesitate to loan money to a self-employed applicant, private mortgage loans in Stratford close fast and have minimal eligibility criteria.

That's why, while you might don't have great credit, having a promising real estate opportunity, a considerable down payment, prior experience, and an intelligible exit strategy are much more relevant when being qualified for private money for a real estate loan. Additionally, the fast closing Stratford private real estate mortgages provide you with financing right away, letting you close within weeks.

Mostly, people talk to Stratford private mortgage lenders to finance their real estate ventures when:

1. A rehab or update will help them sell their property for a much higher price point or bring in extra rent.

   E.g. one of our customers owned a duplex. He'd already built considerable equity in the asset and the monthly rent checks was a regular revenue stream. Although some upgrades to the property could have enabled him to charge more rent, a bank would definitely have turned down the loan application, given that his credit score was only 520. When he approached Read Rock Capital to get financing, we were happy to complete a cash-out refinance at 65% of the duplex's value.

2. They need to combine debts.

   A lot of people know how stressful it is to make multiple payments each month. Because of this, many people opt to take advantage of the equity in their property to combine their unsecured debts into one loan with a single monthly payment.

3. They would like to release the equity in one house and use it to buy another one.

   One of Island View's borrowers in Hawaii owned a property valued at $1M. Because it was hard for him to find an interested party for the property, he had a person who was willing to lease it with an option to purchase it. The rent amount was adequate to take care of the cost of his monthly mortgage bill, taxes and insurance payments. Additionally, he received a $200,000 non-refundable deposit for the 3-year agreement. Using these assurances to cover the property's monthly payments on a recurring basis, he approached Read Rock Capital to get a seventy percent loan-to-value private mortgage loan to aid in his upcoming real estate investment. This not only gave him adequate money to use for a deposit on his next investment, but also helped him repay the current mortgage.

4. They have a previous private loan and are unable to pay the pending balloon payment.

   If a person cannot meet a balloon payment due to unexpected factors, he can seek to refinance the loan with another mortgage lender. A cash-out refinance helps the borrower complete the balloon payment and evade penalty.

Hoping to discuss mortgage options with a private mortgage lender in Stratford? Submit the form on this page or get in touch with us via phone to talk about the property you have in mind.