Countless real estate investors rely on private real estate financing to purchase a new property, or renovate or refinance one they already have. As opposed to bank loans, Colorado private mortgage loans are fast closing, easy qualifying and available to self-employed individuals.

Meaning that irrespective of the caliber of your credit score, you still have a good chance of getting private money for a real estate loan so long as your real estate project is viewed to be profitable, you have adequate capital reserved for the downpayment, you have proven yourself competent in real estate in the past, you have considerable equity in the home or property or you can show a clear-cut plan to pay off the loan. Furthermore, if you are hoping for a fast closing, there are few options better than Colorado private real estate mortgages.

Most individuals depend on Colorado private mortgage lenders when:

1. A remodeling job or update will make it possible to market the home for a higher price or fetch additional rent.

   Real example: one of our customers held a two-family rental. He had already built up considerable equity available in the asset and the rent was a regular source of income. He desired to perform some modifications to the units to help maintain high rents, but a poor credit score of 520 meant a bank would undoubtedly turn down his mortgage request. So the borrower got into contact with Island View Private Loan Fund (IVPLF) to complete a cash-out refinance which provided him financing for 65% of the duplex's assessed value.

2. They're stuck with multiple outstanding debts and want to combine them.

   Most people find that it's stressful to manage countless payments every month. Because of this, some people make the decision to utilize the equity in their property to combine each of their debts into only one loan which has a single payment per month.

3. They wish to utilize their property's equity for an additional home purchase.

   As one example, a customer in Hawaii had a house appraised at $1,200,000. While it was tough for him to get a purchaser for the home, he had found somebody who was open to lease it with an option to buy. The amount of rent was sufficient to handle his monthly mortgage payment, taxes and cost of homeowner's insurance. Additionally, he received a two hundred thousand dollars non-refundable downpayment for the three year contract. With the help of these assurances to cover the house's foreseeable bills, he discovered a new real estate investment opportunity and got into contact with IVPLF to obtain a private mortgage loan close to seventy percent of the home's estimated value. Meaning that he could make the downpayment for his next investment, and also help with his current mortgage.

4. The balloon payment for a preexisting loan is owed soon and they cannot afford it.

   A person who invests in real estate and has a previous private mortgage and isn't able to pay for the balloon payment caused by a change in circumstances can submit an application for refinancing from a different lending company. A refinance will help him avoid missing the cut-off date for the balloon payment and prevent any fees and penalties.

Hoping to connect with a private mortgage lender in Colorado speak about funding options for your upcoming project? Enter your info into the contact form on this page or get in touch with us via phone to talk about your property or properties.