Private real estate financing involves getting a short-term mortgage through a privately owned firm or individual person to be able to purchase, carry out improvements on or refinance a property. New Mexico private mortgage loans have many advantages — they close fast, are easy to qualify for and are also open to self-employed individuals.

That means that regardless of whether you have a good credit score, you've still got a good chance of receiving private money for a real estate loan so long as your investment is presumed to be profitable, you have sufficient money reserved for the downpayment, you have shown yourself able in the real estate market in the past, you have significant equity contained in the property or home or you have a clear-cut plan to repay the loan. And with fast closings of only two weeks, private real estate mortgages in New Mexico may very well be the perfect choice for real estate investors.

In most cases, people ask New Mexico private mortgage lenders to finance their endeavors when:

1. They would like to update or make repairs to the home to enable them to market it at a higher price point or to bring in higher rents.

   E.g. one of our customers owned a duplex. He'd already built up adequate equity available in the asset and the rent payments was a regular revenue stream. He desired to do some modifications to the place so that he could maintain high rents, but a lower credit score of 520 meant that a bank would turn down his loan request. And so he turned to Island View Private Loan Fund to obtain a cash-out refinance and acquired a loan at 65% LTV.

2. They've got numerous debts and wish to combine them.

   The majority of people know how stressful it is to manage countless payments each month. To make the situation more manageable, some people consolidate their outstanding debts into a single line of credit with just one payment per month.

3. They would like to utilize their home's existing equity for a different purchase.

   By way of example, one of our clients in Hawaii had a house valued at more than one million bucks. Though it was difficult for him to get a buyer for his home, he had found an individual who was open to lease it with an option to buy. The rental agreement payouts helped him meet his existing mortgage, property taxes and insurance. He also received a $200,000 non-refundable advance payment for the 3 year lease contract. With the help of these sureties to pay for the house's foreseeable financial obligations, he discovered a new real estate opportunity and got in touch with IVPLF for a private mortgage loan close to 70% of the property's appraised value. This not only gave him adequate capital to put towards a downpayment or his next investment, but additionally helped him deal with the current mortgage.

4. The balloon payment for their current private loan is due and they cannot pay it.

   If a person is not able to make a balloon payment due to unanticipated causes, he can make an effort to refinance his loan with another loan company. Refinancing ahead of the due date allows the borrower to make the deadline for the balloon payment and avert any penalties related to missing the balloon payment.

Hoping to find a private mortgage lender in New Mexico to help you afford your investment purchase? Enter your info into the form on this page or give us a call and let's talk about your property or properties.