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Private real estate financing means getting a short-term loan via a private business or individual with the intention to purchase, perform improvements on or refinance a property. Whereas conventional lending institutions like banks require a prolonged, drawn out application process and are more than likely to hesitate to offer money to a self-employed borrower, private mortgage loans in Massachusetts close fast and are easy to qualify for.
So even if you have bad credit, having a promising opportunity, a considerable down payment, past experience, and a well-defined exit strategy are more important in regards to qualifying for private money for a real estate loan. And having fast closings of just fourteen days, private real estate mortgages in Massachusetts may very well be the right solution for ambitious real estate investors.
Most real estate investors speak with Massachusetts private mortgage lenders when:
They want to find money to remodel a house and sell it at a much higher price or to rent it out for more money.
For example, there was a borrower with a 2-unit rental property. He previously built up ample equity in the asset and the monthly rent checks was a regular income source. He wanted to perform some upgrades to the place so that he could maintain high rents, but a lower credit score of 520 meant a bank would undoubtedly turn down his mortgage application. After he got into contact with Island View Private Loan Fund to get financing, we were glad to complete a cash-out refinance at 65% of the duplex's appraised value.
They're stuck with multiple debts and desire to consolidate them.
Many of us know how stressful it is to deal with multiple payments every month. Due to this, lots of people do a loan from their home equity to combine all of their financial debts into one manageable payment.
They wish to employ the equity in one property and use it to purchase a different one.
One of Island View's borrowers located in Hawaii owned a home valued at $1M. When he could not secure a buyer for his property, he entered into a lease-option-to-buy deal with an interested party. The money that stemmed from the rent covered his continuing mortgage bill, insurance, and taxes. The renter also consented to pay $200,000 for a down payment for the three year lease. These sureties meant that he no longer had to be concerned about the home's ongoing financial obligations, and as a result, when another great investment opportunity came up, he reached out to IVPLF and got a private mortgage loan at 70% LTV. This allowed him to pay an advance on the down payment for his next property, and furthermore pay down his existing mortgage.
They have a previous mortgage and can't afford the looming balloon payment.
If an unanticipated mishap prevents someone from making his balloon payment due date, he can seek out a different mortgage lender to refinance. Refinancing prior to the term date helps the borrower to meet the due date for the balloon payment and avoid fines in connection with failing to make the balloon payment.
Hoping to find a private mortgage lender in Massachusetts to fund your real estate investment? Complete the contact form or call us to discuss the project you have in mind.
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