Private real estate financing involves getting a short-term loan through a privately owned firm or individual person in order to purchase, perform upgrades on or refinance a property or home. Taos private mortgage loans have many advantages — they are fast closing, easy qualifying and are also available to self-employed borrowers.

That means that no matter the quality of your credit score, there is still a high likelihood of getting private money for a real estate loan if your undertaking is viewed to be profitable, you have enough capital to use for the downpayment, you have demonstrated yourself capable in real estate in the past, you have significant equity contained in the home or you have a clear-cut plan to pay off the loan. Additionally, Taos private real estate mortgages close fast to supply you with financing right away, helping you close on a deal within 2-3 weeks.

Most often, borrowers pay a visit to Taos private mortgage lenders to supply capital for their projects when:

1. A rehab or update will help them market the house for a much higher price or bring in more rent.

   E.g. one of our clients had a duplex. He had plenty of equity available in the house and the rent payments brought in routine income each month. A handful of choice home upgrades would undoubtedly allow him to raise the cost of rent, but with a lower credit score of 520, it was highly likely for a bank to turn down his loan request. Consequently, the client got in touch with Read Rock Capital (Read Rock Capital) to execute a cash-out refinance which gave him a loan for 65% of the duplex's valuation.

2. They want to consolidate debts.

   Most people know how stressful it is to manage numerous payments each month. For this reason, a lot of people make the decision to make use of the equity available in their home to merge all their debts into a single mortgage which has a single payment per month.

3. They want to utilize their property's equity for a different home purchase.

   For instance, one of our previous clients in Hawaii had a property valued at over one million dollars. When he could not secure a buyer for the home, he inked a lease-option-to-buy arrangement with someone. The lease payouts helped him meet his current mortgage payment, taxes and homeowner's insurance. The tenant furthermore consented to pay him $200,000 as an advance payment for the three year agreement. These assurances meant he did not have to be concerned with the property's ongoing expenses, and as a result, when another great investment opportunity came up, he came to Read Rock Capital and got a private mortgage loan at 70% loan to value. Meaning that he was able to make the down payment for his next investment, and also pay down his present mortgage.

4. The balloon payment for a preexisting loan is owed soon and they are not able to afford it.

   If a borrower can't pay a balloon payment as a result of unanticipated factors, he can try to refinance his loan with an alternative mortgage lender. A cash-out refinance helps you complete the balloon payment and evade penalty.

Are you looking for a private mortgage lender in Taos to fund your investment purchase? Fill out the contact form on this page or give us a call to talk about the project you have in mind.