Private real estate financing means finding a short-term loan from a private company or individual person with the intention to buy, carry out improvements on or refinance a home or property. While typical lending institutions, for example, banks necessitate a prolonged, time consuming application process and in all likelihood will think twice about loaning money to a self-employed customer, private mortgage loans in Tuscaloosa close fast and are easy qualifying.

That means that even if your credit score just went through the wringer, you've still got a high probability of receiving private money for a real estate loan so long as your investment is regarded as profitable, you have ample money to put towards the down payment, you have proven yourself competent in the real estate market previously, you have sizeable equity contained in the property or you have a legitimate plan to repay the loan. Additionally, the fast closing Tuscaloosa private real estate mortgages give you financing right away, helping you close a deal within 2 or 3 weeks.

In general, investors contact a private mortgage lender in Tuscaloosa when:

1. They want capital to remodel a property and sell it at a much higher price point or to rent it out at a higher monthly amount.

   For instance, we had this borrower who owned a two-unit rental property. He had an abundance of equity available in the asset and the rent generated regular income each month. A handful of select home upgrades would undoubtedly allow him to bump up the cost of rent, but because of a below average credit score of 520, it was very certain that a bank would turn down his mortgage request. When he got in touch with Read Rock Capital to get financing, we were happy to complete a cash-out refinance at 65% of the duplex's assessed value.

2. They would like to combine their debts.

   Many people find it stressful to manage countless payments each month. To put together a more manageable situation, some people consolidate their unsecured debts into an individual loan with one monthly payment.

3. They would like to unlock the equity in one property and use it to acquire a different one.

   Here is an example. A homeowner in Hawaii had a house appraised at $1,200,000. When he failed to find a buyer for the home, he signed a lease-option-to-buy arrangement with an interested party. The money that stemmed from the rent covered his ongoing mortgage payment, insurance, and taxes. The renter additionally included $200k for a non-refundable deposit as he signed the three year lease agreement. With these assurances covering the home's bills on an ongoing basis, he called Read Rock Capital to obtain a 70% LTV private mortgage loan to help with his subsequent purchase of an investment property. This enabled him to pay an advance on the downpayment for his next property, and at the same time pay down his existing mortgage.

4. The balloon payment for a prior mortgage is due and they can not pay it.

   A person who invests in real estate and already has an existing private mortgage loan and is unable to pay for the balloon payment as a result of a change in circumstances can apply for refinancing from a different lender. Refinancing prior to the due date allows the borrower to meet the due date for the balloon payment and stay clear of penalty charges in connection with failing to make the balloon payment.

Hoping to discuss mortgage programs with a private mortgage lender in Tuscaloosa? Enter your info into the contact form or get in touch with us via phone and let's discuss the property or properties you have in mind.