Private real estate financing means getting a short-term loan through a private business or individual person to be able to buy, carry out upgrades on or refinance a property or home. While conventional lenders like banks have a lengthy, time consuming application process and are likely to think twice about loaning money to a self-employed applicant, private mortgage loans in Tinley Park close fast and are easy to qualify for.

That's why, while it's possible you don't have very good credit, having a promising opportunity, a considerable down payment, previous experience in real estate, and a clear exit strategy are much more relevant when it comes to being eligible for private money for a real estate loan. And with fast closings of just fourteen days, private real estate mortgages in Tinley Park may very well be the right solution for real estate investors.

Frequently, customers confer with Tinley Park private mortgage lenders to supply capital for their real estate activities when:

1. They want to remodel or repair the home so that they can offer it for sale at a much higher price point or to ask for higher monthly rental fees.

   E.g. one of our clients owned a twin-home / duplex. At the time, he had a lot of equity in the property and the rent checks brought in a steady cash flow. Though some upgrades to the property may have helped him ask for more rent, a bank would definitely have turned down his mortgage application, due to the fact his credit score was only 520. So he reached out to Read Rock Capital to get a cash-out refinance and received a loan at 65% LTV.

2. They're stuck with numerous unsecured debts and prefer to consolidate them.

   Multiple unsecured debts with different rates are often rather overwhelming and challenging to keep track of. On that basis, some individuals borrow from a property's equity to combine each of their unsecured debts into one loan.

3. They want to allocate their equity in one home and invest in another one.

   As an illustration, a customer in Hawaii had a home valued at $1.2M. He wanted to sell the house but that never materialized and he ultimately was forced to be satisfied with leasing the home to an interested party, with the option to buy at a future time. The rent amount was sufficient to handle his ongoing mortgage payment, taxes and cost of homeowner's insurance. The tenant furthermore went ahead and paid 200k in the form of a deposit for a 3-year lease agreement. Having these assurances to handle the property's bills on an ongoing basis, he approached Read Rock Capital to get a seventy percent LTV private mortgage loan to help with his upcoming investment. This not only gave him plenty of capital to put towards a down payment or his next home, but also made it easier for him to repay the current mortgage.

4. They want help to satisfy the balloon payment for the existing mortgage loan.

   A real estate investor who already has an existing private mortgage and is not able to afford the balloon payment because of a change of circumstances can submit an application for refinancing from an alternative lender. Refinancing prior to the term date allows the borrower to make the due date for the balloon payment and stay clear of consequences associated with failing to pay the balloon payment.

Hoping to make contact with a private mortgage lender in Tinley Park to go over financing alternatives for your next project? Complete the form on this page or give us a call and let's talk about your project.