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Private real estate financing can help investors purchase, remodel or refinance a property or home utilizing a short-term mortgage loan from a privately owned business or an individual. Although typical lenders like banks have a prolonged, drawn out application process and are more than likely to hesitate to give money to a self-employed client, private mortgage loans in Michigan close fast and have minimal eligibility requirements.
That means that whether or not you have a good credit score, there is still a high likelihood of obtaining private money for a real estate loan so long as your real estate project is regarded as profitable, you have adequate money to set aside for the down payment, you have shown yourself able in prior real estate ventures, you have significant equity in the home or you have an intelligible plan to pay off the loan. In addition, the fast closing Michigan private real estate mortgages grant you funding without delay, letting you close on a deal within 2-3 weeks.
Most real estate professionals use Michigan private mortgage lenders when:
A rehab or restoration will make it possible to market their property for a higher price or bring in more rent.
By way of example, we had this borrower who owned a 2-family rental. He held an abundance of equity in the house and the rent generated routine monthly income. A number of choice home improvements would undoubtedly help him raise his rental prices, but with a bad credit score of 520, it was highly certain that a bank would turn down his mortgage request. Shortly after he got in contact with Island View Private Loan Fund for a loan, we were able to do a cash-out refinance for 65% of the house's assessed value.
They would like to consolidate their financial debts.
Numerous unsecured debts with various interest rates are often very overwhelming and hard to keep track of. To successfully set up a more manageable situation, people consolidate all their unsecured debts into just one line of credit with just one payment per month.
They would like to take advantage of their home's equity for an additional real estate deal.
For example, a homeowner located in Hawaii owned a home appraised at $1,200,000. Since it was difficult for him to find a purchaser for the property, he had found someone that was open to lease it having the option to buy. The lease income helped him meet his current mortgage expenses, property taxes and homeowner's insurance. Additionally, he was given a two hundred thousand dollars non-refundable advance payment for the three year lease agreement. The signed agreement meant that he no longer had to worry about the home's ongoing financial obligations, so when another promising real estate investment opportunity showed up, he came to IVPLF and obtained a private mortgage loan at seventy percent LTV. This means that he could make a downpayment for the new investment, and also repay his present mortgage.
They already have a preexisting loan and cannot afford the looming balloon payment.
A real estate investor who already has an existing private mortgage and isn't able to pay for the balloon payment on account of a change in circumstances can fill out an application for refinancing from another loan company. A cash-out refinance helps you complete the balloon payment and evade consequences.
Hoping to discuss your investment alternatives with a private mortgage lender in Michigan? Submit the form or get in touch with us via phone and let's discuss your project.
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