Private real estate financing helps investors pay for, renovate or refinance a property or home utilizing a short-term loan from a private business or an individual. Whereas conventional lending institutions, for example, banks require an extended, time consuming application process and are likely to think twice about giving money to a self-employed individual, private mortgage loans in Waimalu close fast and have minimal eligibility requirements.

Thus, while it's possible you have lousy credit, having a promising real estate opportunity, a considerable down payment, prior experience in real estate, and a clear exit strategy are much more relevant when qualifying for private money for a real estate loan. Combined with fast closings of two weeks, private real estate mortgages in Waimalu may very well be the right solution for serious real estate investors.

Most individuals talk with Waimalu private mortgage lenders when:

1. They wish to remodel or repair the house to enable them to offer it at an increased price point or to bring in higher monthly rental fees.

   As an illustration, one of our customers held a two-unit rental. He already had a considerable amount of equity in the building and the rent generated steady revenue. He desired to perform some upgrades to the property so that he could maintain high rents, but a below average credit score of 520 meant a bank would turn down the mortgage request. Thus, he turned to Read Rock Capital to do a cash-out refinance and got financing at 65% LTV.

2. They need to consolidate their unpaid debts.

   A lot of people think it is stressful to manage countless payments each month. To help set up a more reasonable situation, some people merge their debts into an individual loan with only one monthly payment.

3. They prefer to take advantage of their property's equity for another purchase.

   One of our clients located in Hawaii owned a house valued at $1.2 million. He wanted to sell the house but that didn't happen and he finally was forced to be content with leasing the place to an interested party, with an option to buy at a future date. The lease income helped him meet his existing mortgage payment, property taxes and insurance. Additionally, he received a $200,000 non-refundable down payment for the three year lease. Having these sureties to handle the property's bills on an ongoing basis, he contacted Read Rock Capital to get a 70% loan-to-value private mortgage loan to aid in his next real estate investment. This not only gave him plenty of capital to use for a down payment on his next investment, but additionally made it easier for him to pay off the current mortgage.

4. They already have a preexisting private loan and cannot afford the pending balloon payment.

   A real estate investor who already has an existing private mortgage and is unable to pay for the balloon payment thanks to a change of circumstances can fill out an application for refinancing from an alternative loan company. Refinancing ahead of the term date enables the borrower to make the due date for the balloon payment and stay clear of penalty charges in connection with missing the balloon payment.

Hoping to discuss your mortgage options with a private mortgage lender in Waimalu? Enter your info into the contact form on this page or call us to talk about the property you have in mind.