Private real estate financing involves getting a short-term mortgage through a private firm or individual to be able to purchase, carry out upgrades on or refinance a home. Although traditional lenders, for example, banks will require a prolonged, time consuming application process and are more than likely to hesitate to lend money to a self-employed borrower, private mortgage loans in New York close fast and are easy qualifying.

Thus, while it's possible you have poor credit, having a promising opportunity, a considerable downpayment, previous experience, and a good exit strategy are a great deal more relevant in regards to being qualified for private money for a real estate loan. And having fast closings of only 2 weeks, private real estate mortgages in New York are an ideal solution for ambitious real estate investors.

Normally, investors reach out to a private mortgage lender in New York when:

1. They wish to update or fix up the property so that they can offer it at a much higher price point or to fetch higher rents.

   As an illustration, one of our customers operated a two-family rental. He already had a lot of equity available in the building and the rent checks brought in a steady cash flow. Although a few remodeling work to the units would've enabled him to collect higher rent, a bank would have turned down the loan application, because his credit score was down at 520. So the borrower approached Island View Private Loan Fund (IVPLF) to do a cash-out refinance which provided him a loan for 65% of the home's market value.

2. They want to consolidate unpaid debts.

   The majority of people think it is stressful to make numerous payments each month. In order to set up a more manageable situation, some people merge their debts into one single mortgage loan with only one monthly payment.

3. They prefer to unlock their equity in one home and purchase a different one.

   For instance, one of our past customers in Hawaii had a place appraised in excess of a million dollars. His plans to sell the house did not work out and he eventually was forced to settle for leasing the home to an interested party, with the option to buy at a future time. The money that stemmed from the lease contract paid for his monthly mortgage payment, home owner's insurance, and property taxes. The person also agreed to pay two hundred thousand dollars for a down payment for a 3 year lease agreement. These assurances meant that he no longer had to be concerned about the property's future financial obligations, and as a result, when a new real estate investment opportunity came up, he came to IVPLF and obtained a private mortgage loan at 70% LTV. This gave him plenty of money to put towards a deposit on his next home, but additionally helped him repay the existing mortgage.

4. They already have an existing loan and are not able to pay the pending balloon payment.

   If a borrower cannot meet a balloon payment because of unanticipated causes, he can attempt to refinance the loan with another loan provider. Refinancing before the term date helps you to meet the due date for the balloon payment and avoid consequences related to failing to pay the balloon payment.

Are you looking for a private mortgage lender in New York to finance your investment purchase? Fill out the form on this page or give us a call and let's talk about your project.