Private real estate financing gives assistance to investors who want to purchase, fix up or refinance a home or property via a short-term mortgage from a privately owned company or an individual. Contrary to loans from banks, Rhode Island private mortgage loans close fast, are easy to qualify for and offered to self-employed customers.

That's why, in case you don't have good credit, having a real estate opportunity showing good potential, a considerable down payment, prior experience, and an intelligible exit strategy are more important when it comes to being eligible for private money for a real estate loan. Furthermore, if you want a fast closing, you won't see any alternatives better than Rhode Island private real estate mortgages.

Mostly, borrowers talk to Rhode Island private mortgage lenders to loan money for their endeavors when:

1. They are searching for money to renovate a home and market it at a higher price or to rent it out at a higher monthly amount.

   To illustrate, one of our clients had a twin-home / duplex. He previously built up sufficient equity in the building and the rent was a regular income source. He wanted to do some improvements to the property so that he could keep his rents high, but a low credit score of 520 meant that a bank would turn down his mortgage application. For that reason, the client called Island View Private Loan Fund (IVPLF) to do a cash-out refinance which got him financing for 65% of the home's market value.

2. They need to combine each of their outstanding debts into a single loan.

   The majority of people know how stressful it is to make multiple payments on a monthly basis. For this reason, many people make the decision to utilize the equity available in their home to merge all their outstanding debts into just one private mortgage loan having a single monthly payment.

3. They want to take advantage of the equity in a current property to do another real estate project.

   One of Island View's customers located in Hawaii owned a house valued at over $1,000,000. His idea was to sell the house but it didn't happen and he eventually had to be satisfied with leasing the property to someone, with an option to purchase it at a future date. The amount of rent was adequate to take care of his monthly mortgage payment, taxes and cost of homeowner's insurance. The person also consented to pay 200k in the form of a downpayment for a 3-year lease contract. With these assurances to cover the home's foreseeable bills, he stumbled on another promising investment opportunity and got into contact with IVPLF to obtain a private mortgage loan close to 70% of the home's appraised value. Meaning that he was able to make a deposit for his next property, and also help with his current mortgage.

4. The balloon payment for a preexisting mortgage is due and they can't handle it.

   If a person can't make a balloon payment as a result of unanticipated causes, he can try to refinance his loan with an alternative mortgage lender. Refinancing right before the term date helps the borrower to make the due date for the balloon payment and avoid fees and penalties related to missing the balloon payment.

Planning to discuss your financing options with a private mortgage lender in Rhode Island? Submit the contact form on this page or call us to talk about your property.