Private real estate financing entails obtaining a short-term mortgage from a privately owned firm or individual person to be able to purchase, perform improvements on or refinance a property or home. Whereas conventional lenders like banks require an extended, time consuming application process and are likely to think twice about lending money to a self-employed applicant, private mortgage loans in Vancouver close fast and have minimal eligibility criteria.

Thus, even if you don't have great credit, having a real estate opportunity showing promise for profits, a sizeable downpayment, past experience in real estate, and a good exit strategy are much more important in terms of being eligible for private money for a real estate loan. Besides, if you are searching for a fast closing, there are no better options than Vancouver private real estate mortgages.

Often, borrowers pay a visit to Vancouver private mortgage lenders to fund their real estate ventures when:

1. They need money to fix up a home and property and market it at a much higher price or to up the lease amount for renters.

   By way of example, we had a customer with a 2-unit rental property. He held plenty of equity available in the property and the rent payments generated routine monthly income. Though some remodeling work to the units would've enabled him to charge more rent, a bank would likely have turned down his mortgage application, given that his credit score was a mere 520. After he got in touch with Read Rock Capital to obtain a loan, we were pleased to do a cash-out refinance at 65% of the house's market value.

2. They've got multiple outstanding debts and desire to combine them.

   Numerous debts with a variety of lending rates can be very overwhelming and hard to keep track of. Because of this, a lot of people decide to take advantage of the equity in their property to combine all of their financial debts into one loan with a lone monthly payment.

3. They prefer to take advantage of their home's equity for an additional real estate deal.

   As an illustration, a customer in Hawaii had a house valued at $1,200,000. His idea was to sell the house but it didn't work out and he finally was forced to settle for leasing the home to an interested party, with the option to purchase it at a later time. The money that stemmed from the lease contract covered his regular mortgage payment, insurance, and taxes. He also was given a $200k non-refundable down payment for the three year lease contract. With these assurances taking care of the property's expenses on an ongoing basis, he phoned Read Rock Capital to obtain a 70% LTV private mortgage loan to aid in his upcoming purchase of an investment property. This allowed him to make the down payment for his next investment, and furthermore pay down his current mortgage.

4. They have a previous loan and are not able to pay the pending balloon payment.

   If a person can't meet a balloon payment due to unforeseen causes, he can attempt to refinance the loan with an alternative lending company. Refinancing prior to the due date allows you to make the due date for the balloon payment and avert any fines associated with failing to pay the balloon payment.

Do you need a private mortgage lender in Vancouver to finance your real estate investment? Fill out the contact form on this page or give us a call and let's discuss the property you have in mind.