Private real estate financing gives assistance to investors who want to purchase, fix up or refinance a home or property using a short-term mortgage loan from a privately owned firm or an individual. As opposed to bank loans, Williamsburg private mortgage loans close fast, are easy to qualify for and open to self-employed customers.

So while it's possible you have bad credit, having a promising real estate opportunity, a substantial downpayment, past experience, and a clear exit strategy are more important in regards to being approved for private money for a real estate loan. In addition, the fast closing Williamsburg private real estate mortgages supply you with financing right away, letting you close a deal within a few short weeks.

Ordinarily, clients consult Williamsburg private mortgage lenders to finance their real estate activities when:

1. They want to renovate or make repairs to the property or home so that they can offer it at a higher price or to get higher rents.

   Real example: one of our borrowers operated a two-family rental property. He'd already built ample equity in the building and the monthly rent checks was a recurring income source. He sought to do some modifications to the units to be able to maintain high rents, but a poor credit score of 520 meant that a bank would turn down his mortgage request. When he got in contact with Read Rock Capital to obtain a loan, we were able to complete a cash-out refinance for 65% of the home's valuation.

2. They would like to merge each of their financial debts into one single payment.

   Most people think it is stressful to deal with multiple payments on a monthly basis. To successfully make the situation more manageable, some people merge all their unsecured debts into only one loan with just one payment per month.

3. They would like to allocate their existing equity in one property and invest in another one.

   Here is an example. A client located in Hawaii had his residence which was appraised at $1.2M. When he could not procure a buyer for the property, he entered into a lease-option-to-buy arrangement with somebody. The rent checks were sufficient to handle his monthly mortgage payment, taxes and cost of insurance. The tenant additionally included $200k for a non-refundable downpayment as part of signing the 3 year agreement. Having these sureties to pay for the house's foreseeable bills, he stumbled on a new real estate investment opportunity and approached Read Rock Capital to obtain a private mortgage loan close to 70% of the property's appraised value. This allowed him to pay an advance on the deposit for the new property, and furthermore pay down his existing mortgage.

4. The balloon payment for a preexisting loan is due and they are unable to afford it.

   If an unexpected event prevents a borrower from hitting his balloon payment due date, he could approach a different mortgage lender to refinance. A cash-out refinance helps the person complete the balloon payment and evade fines.

Hoping to connect with a private mortgage lender in Williamsburg to go over funding options for your upcoming real estate investment? Complete the contact form on this page or call us to talk about your project.