Private real estate financing involves obtaining a short-term loan via a privately owned company or individual with the intention to buy, carry out improvements on or refinance a property. Worcester private mortgage loans have many advantages — they close fast, are easy to qualify for and additionally, are available to self-employed individuals.

That means that even if you do not have a great credit score, you've still got a high probability of receiving private money for a real estate loan as long as your investment is presumed to be profitable, you have enough money to use for the down payment, you have proven yourself capable in the real estate market in the past, you have substantial equity in the property or you have a clear plan to pay back the balance of the loan. What's more, the fast closing Worcester private real estate mortgages grant you funding right away, allowing you to close on a deal within a few short weeks.

Most real estate investors turn to Worcester private mortgage lenders when:

1. They want to remodel or make repairs to the property or home so that they can offer it for sale at a much higher price or to get higher monthly rental fees.

   One example is a borrower who held a two-unit rental property. He held enough equity available in the property and the rent brought in routine monthly income. Though several improvements to the place would've helped him charge more rent, a bank would definitely have turned down his loan request, since he had a credit score of merely 520. Accordingly, he turned to Read Rock Capital for a cash-out refinance and got financing at 65% LTV.

2. They want to combine all their unsecured debts into just one payment.

   Most people know how stressful it is to make multiple payments each and every month. Due to this, lots of people borrow against a property's equity to combine all their financial debts into a single mortgage loan.

3. They want to use their house's existing equity for an additional purchase.

   One of Island View's clients in Hawaii had a property valued at $1M. When he was unable to find a buyer for the property, he entered into a lease-option-to-buy contract with an interested party. The rent amount was enough to take care of the cost of his ongoing mortgage bill, taxes and cost of insurance. The renter also put $200k for a non-refundable down payment as part of signing the 3-year lease agreement. These sureties meant he did not have to be concerned about the property's future financial obligations, and so when another promising real estate investment opportunity surfaced, he reached out to Read Rock Capital and got a private mortgage loan at seventy percent LTV. The money helped him finance his next investment as well as repay his original mortgage.

4. They have an existing private loan and cannot afford the looming balloon payment.

   If someone is unable to pay a balloon payment as a result of unanticipated factors, he can seek to refinance his loan with a new mortgage company. Refinancing right before the due date enables the borrower to make the due date for the balloon payment and avoid consequences in connection with missing the balloon payment.

Want to discuss mortgage options with a private mortgage lender in Worcester? Complete the contact form on this page or call us and let's talk about the project you have in mind.