How the right Private Mortgage Lender can help your client Overcome Financial Challenges

In Montreal, a determined woman named Jana confronted a difficult phase in her life, marked by a complicated divorce that resulted in emotional strain and a damaged credit score. Jana inherited a dilapidated duplex from the divorce settlement. The property required extensive renovations, but her poor credit left her struggling financially and unable to afford the necessary repairs. Additionally, despite approaching various banks, she was unable to acquire funds, due to her damaged credit score, as a direct result of her divorce.

The duplex’s inadequate condition prevented Jana from collecting rent, further aggravating her financial situation. As unpaid bills accumulated, creditors eventually placed a lien on her property. Trapped in a cycle of financial hardship, Jana was uncertain about where to find assistance.

One morning, Jana came across an advertisement for Guardian Financing while having her coffee. Cautiously optimistic, she reached out to the company for help. Guardian Financing, a reputable private mortgage lender in Montreal, promptly responded by sending a professional evaluator to appraise Jana’s duplex. The assessment revealed the property’s $1. million current value, with the potential to increase to $2 million with proper renovations.

Armed with this information, Guardian Financing developed a strategic plan to support Jana. They offered her a second mortgage of $850,000, behind her first mortgage she had with the bank, with a balance of around $600,000, based on an approximate 74% Loan-to-Value (LTV) ratio of the property’s potential $2 million value.

This financial assistance enabled Jana to clear her existing second mortgage from another private lender. Moreover, a reserve was set aside for refurbishing each unit in the duplex, allowing her to charge premium rents upon completion. A reserve to cover 12 months first mortgage payments ensured she would not default on her first mortgage, while a 12-month reserve covered interest payments on the new second mortgage. Ultimately, the remaining funds were sufficient to eliminate all of Jana’s debts, setting her on the path to financial stability.

With renewed confidence and determination, Jana will commence the duplex renovations. Guardian Financing’s backing will allow her to concentrate on the project without the burden of managing mortgage payments and debt. Over a 12-month period, the deteriorating duplex will be transformed into an attractive and functional residence, ready to generate essential rental income.

As Jana’s credit score will recover and her financial situation will stabilize, she will become eligible for conventional financing options, with more favorable interest rates. Now earning a steady income from her renovated duplex, Jana will be well-positioned to rebuild her life and embrace a fresh start.

Ultimately, Jana’s challenges served as a catalyst for growth and success. With Guardian Financing’s expertise and unwavering support, she will triumph over adversity and will emerge more resilient than ever. Jana’s journey highlights the transformative potential of resourcefulness, perseverance, and the right private mortgage lender.