Private real estate financing means obtaining a short-term loan from a private company or individual person as a way to purchase, carry out upgrades on or refinance a home. Whereas traditional lending institutions like banks require an extended, time consuming application process and are likely to think twice about lending money to a self-employed borrower, private mortgage loans in Topsham close fast and are easy to qualify for.

That's great news for investors considering that even somebody with weak credit can qualify for private money for a real estate loan assuming that he has a promising deal, he has adequate money for a down payment, he has proven himself competent in real estate, and has a plan for an exit strategy. Furthermore, if you want a fast closing, you won't find any available alternatives better than Topsham private real estate mortgages.

In most cases, customers confer with Topsham private mortgage lenders to supply capital for their endeavors when:

1. They are in need of money to remodel a home and offer it for a higher price point or to rent it out at a higher monthly amount.

   One example is a borrower who held a 2-unit rental. He previously built adequate equity available in the house and the rent payments was a recurring source of income. Though a few upgrades to the units would have enabled him to command more rent, a bank would most likely have turned down his loan request, since his credit score was down at 520. For that reason, the borrower got into contact with Read Rock Capital (Read Rock Capital) to do a cash-out refinance which gave him financing for 65% of the duplex's assessed value.

2. They're stuck with multiple outstanding debts and prefer to consolidate them.

   Countless debts with a variety of rates are too much to handle and tough to keep track of. In order to make the situation more manageable, people combine each of their debts into an individual mortgage loan with only one monthly payment.

3. They wish to take advantage of the equity within a current property or home to work on another real estate project.

   As one example, a customer in Hawaii had his residence which was valued at $1.2M. When he failed to find a buyer for his property, he signed a lease-option-to-buy contract with an interested party. The amount of rent was sufficient to cover the cost of his monthly mortgage bill, taxes and cost of homeowner's insurance. He also was given a $200,000 non-refundable deposit for the three year lease agreement. With these assurances to take care of the home's foreseeable bills, he stumbled on a new real estate investment opportunity and contacted Read Rock Capital for a private mortgage loan around seventy percent of the property's appraised value. This means that he could make the down payment for the new investment, and also help with his present mortgage.

4. They have an existing mortgage and cannot pay the pending balloon payment.

   If someone is unable to meet a balloon payment thanks to unexpected factors, he can try to refinance his loan with another lending company. Refinancing right before the due date allows the borrower to make the due date for the balloon payment and avert any consequences associated with failing to make the balloon payment.

Wanting to make contact with a private mortgage lender in Topsham to go over financing alternatives for your upcoming real estate investment? Enter your info into the form or call us and let's discuss your property or properties.