Many real estate investors use private real estate financing to purchase a new property or home, or renovate or refinance an existing one. Whereas typical lending institutions, for example, banks will require an extended, time consuming application process and in all likelihood will be reluctant to give money to a self-employed client, private mortgage loans in Troy close fast and are easy qualifying.

That's good news for investors considering that somebody with poor credit can qualify for private money for a real estate loan assuming that he has a deal that shows strong potential, he has adequate cash for a down payment, he has shown himself able in the real estate market, and has a preplanned exit strategy. In addition, Troy private real estate mortgages close fast to grant you financing right away, letting you close a deal within a few short weeks.

Usually, investors get in touch with a private mortgage lender in Troy when:

1. They want funds to repair a house and offer it for a much higher price point or to up the lease amount for renters.

   E.g. a past investor owned a duplex. He already retained a good deal of equity in the property and the rent payments generated steady revenue. A number of choice home improvements would allow him to increase his rental prices, but with a below average credit score of 520, it was extremely likely for a bank to turn down the mortgage application. When he got in touch with Read Rock Capital for a mortgage, we were able to complete a cash-out refinance at 65% of the duplex's market value.

2. They're stuck with multiple personal debts and desire to combine them.

   Most people find it stressful to deal with numerous payments each month. As a result, many individuals get a loan from a property's equity to consolidate all of their debts into just one manageable payment.

3. They would like to use their house's equity for a different purchase.

   To provide an example, a homeowner in Hawaii had his residence which was valued at $1,200,000. While it was difficult for him to get an interested party for the property, he had a person that was willing to lease it having the option to purchase it. The rental agreement income made it possible to meet his current mortgage payment, taxes and homeowner's insurance. The tenant also included $200,000 towards a non-refundable advance payment as part of signing the 3 year lease. The signed agreement meant he did not have to be concerned with the home's future financial obligations, and so when another great real estate opportunity showed up, he came to Read Rock Capital and got a private mortgage loan at seventy percent LTV. This means that he could make a down payment for the new investment, and also pay down his present mortgage.

4. They have an existing private loan and cannot afford the looming balloon payment.

   A person who invests in real estate and currently has an existing private mortgage loan and isn't able to afford the balloon payment because of a change of circumstances can submit an application for refinancing from a new lending company. A refinance can help the borrower avoid missing the cut-off date for the balloon payment and avoid penalty charges.

Hoping to discuss your financing alternatives with a private mortgage lender in Troy? Fill out the contact form or get in touch with us via phone and let's talk about the property or properties you have in mind.