The California real estate market is currently in a fascinating state. Foreclosures are decreasing, home prices are going up, rent prices are going up, and the overall market is stabilizing. Buyers are purchasing with increased confidence, but many people who could buy are choosing to rent instead. As the market stands, California currently has excellent opportunities for both buy and hold and fix and flip real estate. Fortunately, ZINC Financial provides loans for both types of investors. Learn more about each type of investment below, as well as ZINC’s current financing opportunities.
Rental Real Estate Loans
Loans for rental real estate, or buy and hold real estate as it is sometimes called, are multiple-year loans that allow investors to purchase properties and rent them out for a period of four to six years before reselling the home at a profit. Rental real estate offers many perks including supplementary monthly income and long-term growth potential. In the current market, many investors are turning to buy and hold opportunities because rent prices and home prices are both on the rise. In other words, a person who purchased a property now and rents it for a few years can make returns on a monthly basis as well as substantial ROI when they ultimately sell the home. Of course, buy and hold real estate requires more patience than fix and flip, but it is also more steady and potentially more lucrative.
ZINC Financial currently offers buy and hold loans ranging from $100,000 to $850,000. The terms of these loans are 48 months 60 months at rates as low as 7.49%. Borrowers are required to put down at least 20% of the purchase price, and ZINC is able to provide these loans in as little as seven to twenty-one business days.
House Flipping Loans
Over the last few years California has offered excellent opportunities for fix and flip investors, and many more opportunities remain. The market is quite saturated at present, but investors with strong financial partners are managing to make excellent profits on their investments. In 2013, the average gross profit per flip in California was nearly $100,000. Rehab real estate investment is usually quick, and savvy investors can work on multiple properties at once, particularly when they’re working with a strong financial partner.
ZINC currently offers house flipping loans to both experienced and novice investors. Investors who have flipped less than three homes can take out loans between $25,000 and $600,000 for a term of nine months with up to one three-month extension. The current rate for a ZINC rehab beginner loan is 12.9%, and borrowers are required to put down 20-30% of the purchase price. For experienced investors, the terms are more lenient. Borrowers are only required to put down 10-20% of the purchase price, and the rate is lowered to 11.9%. For both experienced and new investors, the timeline to fund house flipping loans through ZINC is only seven to ten business days — among the fastest in the industry.
It’s important to note that ZINC Financial only provides private money loans, not hard money loans. Hard money loans are often offered to subprime borrowers at higher interest rates, which is something our company does not offer. ZINC only works with investors that we believe in, offering loans that are fair and which foster long-term, mutually beneficial financial partnerships.
Learn more about the loans offered by ZINC Financial by contacting our offices today at 559.326.2509.