Private real estate financing involves finding a short-term mortgage from a privately owned firm or individual person to be able to purchase, perform upgrades on or refinance a property. Although traditional lenders like banks will require a prolonged, time consuming application process and are likely to be reluctant to loan money to a self-employed customer, private mortgage loans in Takoma Park close fast and have minimal eligibility criteria.

That's why, while it's possible you have bad credit, having a promising opportunity, a sizeable down payment, previous real estate experience, and an intelligible exit strategy are far more crucial in regards to being approved for private money for a real estate loan. And having fast closings of 14 days, private real estate mortgages in Takoma Park may very well be the right alternative for ambitious real estate investors.

Generally, customers contact a private mortgage lender in Takoma Park when:

1. They need funds to fix up a home and offer it at a higher price point or to rent it out for more money.

   Real example: one of our borrowers operated a 2-family rental property. He previously built adequate equity available in the asset and the rent payments was a recurring revenue stream. He desired to do some renovation to the units to help keep his rents high, but a lower credit score of 520 meant a bank would undoubtedly turn down the loan application. Accordingly, he reached out to Read Rock Capital to get a cash-out refinance and got a loan at 65% LTV.

2. They want to combine their personal debts.

   Most people find that it's stressful to make multiple payments on a monthly basis. To help arrange a more reasonable situation, some people merge their unsecured debts into an individual mortgage loan with one payment per month.

3. They wish to make use of the existing equity in their existing house to work on another real estate investment.

   One of Island View's customers located in Hawaii had a home worth $1M. His plans to sell the house didn't happen and he eventually was forced to be satisfied with leasing the home, with the option to purchase it at a future date. The rent checks were more than enough to take care of his ongoing mortgage payment, taxes and homeowner's insurance obligations. The tenant furthermore consented to pay him two hundred thousand dollars as an advance payment for the 3-year lease contract. With these assurances taking care of the home's financial obligations on an ongoing basis, he approached Read Rock Capital for a seventy percent LTV private mortgage loan to aid in his next purchase of an investment property. This let him make the down payment for the new property, and furthermore pay down his existing mortgage.

4. They already have a preexisting private loan and are unable to afford the pending balloon payment.

   If a borrower cannot meet a balloon payment because of unforeseen causes, he can seek to refinance the loan with an alternative loan provider. A refinance will help him hit the due date for the balloon payment and prevent any fines.

Looking to meet a private mortgage lender in Takoma Park speak about funding programs for your upcoming investment? Fill out the contact form on this page or give us a call to discuss the property you have in mind.