Why Use Private Financing for Real Estate?
Many people might wonder why anyone would use private financing for real estate, when banks and other financial institutions offer a much lower interest rate. The facts are that with private financing, you need not worry about your credit score or other means of establishing creditworthiness. The interest rate is just not that important when you’re looking for capital to finance a fix and flip property, since most of these projects are short term.
With private financing for real estate, you may be paying 14-20 percent interest for 4-6 months, but it’s a much better deal than 6-10 percent for 30 years. Additionally, if you fall in love with the remodel job you did and decide to keep it, it’s now worth a whole lot more and you can approach a banking institution for a long-term mortgage. So yeah, it’s a win-win in that the private financier made a good deal on the short-term loan, and you didn’t have to use your own money to finance your project, and by using private financing for real estate for a fix and flip project, you can now get the money you need to make it your own.
Additionally, with private financing, you’re not locked into paying a down payment that you may not have the funds for, needing good credit, or providing income verification to get the money you need right away. You could be waiting weeks for a banking institution to make a decision about your loan only to get turned down and have to start all over again somewhere else. Although it is a good idea to look at the cost of each type of loan, private financing for real estate will most likely be the best option for that fixer-upper, not necessarily for price but for convenience.
Where Can You Find Private Financing for Real Estate?
There are likely hundreds of places to borrow the money you need to fix and flip that property you got at auction. You should do a diligent search and compare profit versus accessibility. The best deal in town is no good to you if you can’t get it, or it will take weeks or even months to get approved, right?
The truth is, even though a lot of contractors and real estate investors could get money from a variety of sources, many in the Houston, Texas, area continue to come back to Red Door Funding, time after time.
Why Use Red Door Funding?
Red Door Funding, at (832) 539-1099, will give you up to 100 percent of the appraised value of the completed rehab of your project. Red Door Funding is the premier private financing for real estate around Houston. When you know where to get a good deal, why go anywhere else? Don’t just take our word for it, ask around, compare prices and convenience, then come to the name you can trust in private financing for real estate.
Contact Red Door Funding to get the loan you need at an affordable rate, get that job done, and the property on the market. Complete the credit application online here. Or, send us an email with any questions, dwilliams@reddoorfunding.com. Additionally, if you are on the other end of the spectrum, and you are looking for a place to put your investment cash for a good return on your investment, come on in and let’s talk.