Private real estate financing involves getting a short-term loan through a privately owned firm or individual person as a way to purchase, carry out improvements on or refinance a property or home. Unlike loans from banks, West Des Moines private mortgage loans are fast closing, have minimal eligibility requirements and available to self-employed customers.

Thus, while you might don't have very good credit, having a promising real estate opportunity, a substantial downpayment, prior experience in real estate, and a clear exit strategy are more relevant in terms of being eligible for private money for a real estate loan. Additionally, West Des Moines private real estate mortgages close fast to ensure that you get funding right away, helping you close on a deal within 2-3 weeks.

Most real estate professionals turn to West Des Moines private mortgage lenders when:

1. They want capital to fix up a home and offer it for sale for a much higher price point or to rent it out at a higher monthly amount.

   As an example, a past client had a twin-home / duplex. He'd already built sufficient equity available in the property and the monthly rent checks was a routine income source. He sought to do some improvements to the units in order to maintain high rents, but a below average credit score of 520 meant a bank would turn down his loan application. Accordingly, he turned to Read Rock Capital for a cash-out refinance and got financing at 65% LTV.

2. They wish to consolidate their unpaid debts.

   Countless outstanding debts with different lending rates can be too much to handle and hard to manage. To help arrange a more reasonable situation, people consolidate each of their debts into a single loan with only one payment per month.

3. They want to employ the existing equity in one home or property and buy a different one.

   To provide an example, a customer in Hawaii had a home appraised at $1,200,000. While it was challenging for him to find a buyer for the home, he had found someone who was ready to lease it with the option to purchase it. The rent amount was enough to pay for his regular mortgage payment, taxes and cost of homeowner's insurance. The renter additionally included $200,000 towards a non-refundable down payment as he signed the 3-year lease agreement. These sureties meant he no longer needed to worry about the property's future financial obligations, and thus, when a new investment opportunity surfaced, he came to Read Rock Capital and got a private mortgage loan at 70% LTV. This allowed him to make the down payment for the new property, and furthermore helped with his present mortgage.

4. They need help to meet the balloon payment for the current mortgage loan.

   If a person can't pay a balloon payment due to unexpected causes, he can try and refinance his loan with a different lending company. A refinance will help the borrower avoid missing the cut-off date for the balloon payment and prevent any penalty charges.

Interested in discussing your financing options with a private mortgage lender in West Des Moines? Fill out the form or give us a call to talk about your property.