Private Real Estate Mortgages in Tupelo
Private real estate financing helps investors purchase, remodel or refinance a home or property using a short-term loan from a privately owned firm or an individual. Unlike loans from banks, Tupelo private mortgage loans are fast closing, have minimal eligibility requirements and accessible to self-employed borrowers.
That is great news for investors considering that even a person with weak credit can opt for private money for a real estate loan provided that he has a promising project, he has plenty of cash for a down payment, he has proven himself able in prior real estate investments, and has a good exit strategy. And with fast closings of only 2 weeks, private real estate mortgages in Tupelo may very well be the perfect alternative for real estate investors.
Most real estate professionals turn to Tupelo private mortgage lenders when:
They want to remodel or make repairs to the home in order to offer it for sale at a much higher price or to charge higher rents.
For instance, we had a borrower with a 2-unit rental property. He had already built ample equity in the property and the monthly rent checks was a regular income source. He wanted to do some modifications to the property to be able to keep his rents high, but a lower credit score of 520 meant that a bank would doubtless turn down his mortgage application. When he approached Read Rock Capital to get financing, we were glad to do a cash-out refinance at 65% of the duplex's market value.
They wish to merge all their debts into a single payment.
Multiple outstanding debts with various interest rates can be extremely overwhelming and difficult to manage. In order to make the situation more reasonable, some people consolidate all of their outstanding debts into a single loan with just one payment per month.
They wish to capitalize on the equity within their existing home and property to work on a different real estate investment.
For instance, one of our previous clients located in Hawaii had a house appraised above one million dollars. He wanted to sell the house but that never materialized and he eventually was forced to be content with leasing the house, with the option to buy at a future time. The rent checks were enough to handle his regular mortgage payment, property taxes and homeowner's insurance payments. The renter also put two hundred thousand dollars in the form of a non-refundable downpayment as he signed the 3-year contract. Having these assurances to cover the home's expenses on an ongoing basis, he contacted Read Rock Capital to get a 70% LTV private mortgage loan to aid in his upcoming investment. This means that he was able to make a downpayment for the new property, and also pay down his current mortgage.
They need help to satisfy the balloon payment for the current loan.
A person who invests in real estate and has a previous private mortgage and cannot pay for the balloon payment because of a change in circumstances can submit an application for refinancing from another lender. Refinancing ahead of the due date helps the borrower to make the due date for the balloon payment and avert any penalty charges associated with missing the balloon payment.
In search of a private mortgage lender in Tupelo to fund your investment purchase? Complete the contact form on this page or get in touch with us via phone and let's talk about your property.
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