3 Questions to Ask Yourself Before Buy and Hold Investing

Few investment opportunities are as lucrative or secure in the current marketplace as rental real estate investing. Home prices and rent prices are on the rise around the country, and neither shows any sign of slowing down in the next few years. With mortgage rates and vacancy rates both incredibly low, people who invest in buy and hold real estate are seeing excellent returns, both on a month-to-month basis when they collect rent and when they ultimately sell their properties.

Before you decide on a rental real estate investing strategy, there are a few questions you should ask yourself to help ensure that you get the most out of your investment. Here are some of the big picture considerations that you should use to help guide your research into buy and hold investing.

Do you want to be landlord?

Investing in buy and hold real estate doesn’t necessarily mean that you have to take on the responsibilities of a landlord. Many buy and hold investors choose to rely on property management firms to advertise vacancies, manage tenants, collect rent, and handle any day-to-day issues that may arise on their properties. While a property management firm will eat into your profits, it will also save you a great deal of time and energy.

That said, there’s no reason why you can’t act as your own landlord, especially if you choose to invest in a single family property. When you only have to deal with one tenant and maintenance issues at a single house, being a landlord can be a pretty easy gig. Whichever route you choose to go, be sure to weigh the value of your time versus the commitment that you think you’ll have to make in order to serve as your own landlord.

Do you have a good accountant?

There are quite a few tax incentives that go along with being a landlord. If you’re not a CPA yourself or if you don’t have any past experience managing rental properties, you’ll definitely want to speak to an experienced accountant to make sure that you take advantage of all of the tax incentives that are available to you as a buy and hold investor. Things like trips to and from your property, rehab expenses, advertising expenses, and a whole range of other costs can be deducted at the end of the year. So if you’re not a good details person, make sure you have someone working for you who is.

How will you fund your investment?

Many novice investors make the mistake of sinking their life savings into a second property with the intent of renting it out. There’s no reason why you need to put your savings on the line. Instead, you can turn to buy and hold loans from reputable private money lenders. At ZINC Financial, our apartment flipping loans are available for both single-family houses and multi-unit apartment buildings.

Whoever you choose for your loans, make sure that you read the terms carefully and keep an eye out for hidden fees. You should also look for a lender who has an excellent reputation within the industry and a lot of repeat clients.

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Posted in Buy & Hold Loans, Buy and Hold Real Estate, Rental Real Estate Financing, Rental Real Estate Investing

Rent Continues to Rise in California and Other States

If you have been toying with the idea of rental real estate investing, now is really the time to act. Rent rates continue to rise around the country with some of the biggest increases seen in states like California. According to MyApartmentMap.com, the average rent across the state of California right now is $2,384. Nationwide, the average rent on a studio apartment is over $1,000 and the average rent on a three bedroom apartment is just over $1,600. Compared to just last year, rent prices have gone up over 3%.

In other words, it’s a very good time to be a landlord.

In some markets, construction is finally starting to catch up to the demand for new apartments, but in many markets builders simply can’t get new apartments up fast enough. Part of the reason why demand is so high is that housing prices are also currently on the rise and out of reach for a lot of Americans. At the same time, some people we could buy are choosing to rent instead thanks to the flexibility offered by renting. Others choose to rent to be closer to jobs in major cities like Los Angeles and San Francisco. Even as rent prices go up, demand is staying steady and vacancy rates are remaining extremely low.

As a buy and hold real estate investor, you can take advantage of the current housing market at both ends. The property that you buy is likely to increase in value over the next few years, according to all of the major forecasts. At the same time, you’ll be able to collect monthly rent from your tenants, which is great for your cash flow. The passive income that you can earn from rental real estate investing is simply unmatched in other types of investments.

Of course, buy and hold real estate is something that you can’t simply jump into. In order to be most successful, you should research your options carefully and make sure that you choose buy and hold loans that suit your investment needs. Ask yourself whether it makes more sense for you to invest in a single family property near where you live or a multi-unit building across state lines. Do you want to serve as your own landlord or hire a property management firm? All of these decisions will have an effect on your bottom line.

Thankfully, the team here at ZINC Financial is here to help. We offer both single-family and apartment flipping loans for buy and hold investors. We can also provide advice on which markets are currently the hottest and how to effectively manage your own property, if that’s the route that you choose to take. Give our office a call to learn more about our current loan rates or to discuss the numerous advantages of rental real estate investing.

Posted in Buy & Hold Loans, Buy and Hold Real Estate, Rental Real Estate Financing, Rental Real Estate Investing

Earn Great Returns Flipping Apartments

A recent article in the New York Post found that property investors in New York are making an average of 15% profit on apartment flips. That marks a decrease from previous years, but still a substantial profit over investing in the stock market, which yielded 6% returns on average in 2015.

Of course, apartment flippers in New York have it tough. The cost of living is so high and demand is so extreme that it’s virtually impossible to find an underpriced condo in New York City to flip. The whole market is essentially a luxury market, which means bigger up front investments and smaller overall returns.

That’s not the case in other housing markets like Los Angeles, Riverside, and San Diego, CA. Out here, apartment flipping takes on a different style, and it can lead to even higher margins of return.

Rather than buying a single condo and flipping it, many California investors are choosing to purchase somewhat rundown apartment buildings in burgeoning neighborhoods, make improvements, and rent out the units for exceptional monthly income. These investors can then sell the units to another property owner in a few years and make additional returns on the overall property.

This buy and hold real estate approach is ideal for areas with growing populations, rising rent prices, and strong property markets, all of which can be found in California and other western states. Rents should continue to rise over the next few years as property prices go up as well, and vacancy rates are expected to remain exceptionally low. All of this is ideal for buy and hold investors.

Plus, rental real estate investing just got easier with our new Apartment Buy and Hold Loan program. Under the program, investors can take out buy and hold loans of up to $10,000,000 to finance the purchase of apartment complexes as large as 150 units. Rates start as low as 6.99%, and the term is up to 60 months.

We believe our new apartment flipping loans will help savvy investors earn excellent returns for years to come. Learn more about our new program by giving our team a call at 559.326.2509.

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Posted in Buy & Hold Loans, Buy and Hold Real Estate, Rental Real Estate Financing, Rental Real Estate Investing

Announcing ZINC’s New Apartment Flipping Loan Program

ZINC Financial is pleased to announce the launch of our new Apartment Buy & Hold Loan Program. The program is meant to help investors make the most of their rental real estate investing portfolio. In the current climate, investing in rental property is a low-risk, high-reward choice, and this new loan program will help more of our clients take advantage of buy and hold opportunities.

GoBankingRates.com recently found that it is more affordable to buy than rent in 42 US states, including California (read the press release here). Rent prices continue to rise across the country whereas interest rates on new home loans are at near-historic lows. And yet, more people are choosing to rent than to buy.

Part of this is due to the fact that home prices are currently quite high, making the initial down payment too much of a hurdle for many potential buyers. Another reason is that Millennials are making up a large portion of the potential buying market, and many Millennials who can afford to buy are choosing to rent instead, both so that they can live in more metropolitan areas and so that they can have flexibility in their housing arrangement. With so many people getting married and having kids substantially later in life than in generations past, the drive to buy is lower.

All of this is great news for buy and hold real estate. Investors can take advantage of the strength of the housing market and the strength of the rental market at the same time, earning monthly income from renters while watching the value of their property go up at the same time.

With our new Apartment Buy and Hold loans, investors can take out loans on properties with as many as 150 units. Loans are available in amounts up to $10,000,000, and rates start at just 6.99%. The loan to value ratio can be up to 75% of the purchase price, and the loan term can be up to 60 months.

To learn more about our new apartment flipping loans, or to discuss a property you have your eye on, give our experts a call at 559

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Posted in Buy & Hold Loans, Buy and Hold Real Estate, Company News, Rental Real Estate Financing, Rental Real Estate Investing

3 House Flipping Tips for 2016 and Beyond

If you have any level of experience with house flipping, you’ve surely noticed that flipping has gotten a lot more competitive over the last few years. Prices are still on the rise and inventories are low, but there are very few distressed properties available. When an underpriced home does go on the market, a dozen house flippers seem to jump on it at once.

Fortunately, there are a few ways that you can be competitive and make the most of your flips in 2016.

  1. Fund your flips wisely

Fix and flip investing is rarely a solo endeavor. You need a whole team of people to help you find the right property, pay the right price, make your repairs cost-effective and quick, and resell the property for a decent margin. Before any of that happens, you need solid access to capital in order to better leverage your own investment and make the whole process less risky.

Some investors choose the joint venture route, which can be very lucrative when both parties are clear on the terms and responsibilities. You can also turn to friends and family for investment, but this almost never goes well. In most cases, the safest and most cost-effective route is obtaining fix and flip loans from reputable private money lenders like ZINC Financial. Our loans currently range from $50,000 to $1,000,000, allowing investors to set their sights on everything from distressed houses to undervalued mansions.

  1. Know your market better than anyone

Once you’ve decided where you want to flip houses, whether it’s your own neighborhood or another state, you need to learn everything you possibly can about the area and its residents. Learn the local crime rates, where the best school districts are, where new office buildings are going up, which local parks are being refurbished, and what home sales have done in the area over the last few years.

It’s important to get to know the area and its potential buyers so well that when the right fix and flip property comes on the market, you’re ready to pounce before anyone else. Having a strong understanding of the market will also help you more accurately predict your after repair value and potential ROI.

  1. Rehab for the buyer, not yourself

This is house flipping 101, but it’s a lesson that bears repeating. Too many house flippers have a terrible time setting aside their own tastes when repairing a fix and flip home. This goes hand-in-hand with Tip 2: it’s essential to know who your potential buyers are so that you can rehab and design according to their tastes, not your own.

Part two of this tip is to not be greedy when you’re pricing your property. The amount of blood, sweat, and tears that you put into the home should not have an effect on your asking price. Instead, price your property according to the market so that you’re able to sell quickly and earn the ROI that you set out to make.

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Posted in Fix & Flip Loans, Fix & Flip Tips, Real Estate News, Rehab Loans, Rehabbing Tips

What You Need to Know About the California Real Estate Market and House Flipping

The California real estate market has been a bit underwhelming in 2016. A new report out of PropertyRadar shares some details about the California housing market as of May. According to the report, single-family homes and condominiums sales went up 2.2% in May over the previous month, but sales were down 4.7% from May 2015. At the same time, the median home sale price was $430,000 in May, marking no change from April, but that marked a 6.2% increase from the $405,000 median in May 2015.

The conclusion to be drawn here is that while home prices are going up, inventory remains low, which is reducing both the motivation and the opportunities for a lot of potential buyers. Prices are simply too steep for many people in California, which is slowing down house flipping this year.

The report noted that sales increased 4.5% in May compared to April, but were down 1.1% compared to a year ago. PropertyRadar found that flip sales made up 3.1% of all home sales in May, which tied with April.

The report also noted an interesting trend. In May, 20.7% of all home sales were cash sales. Of those, 36.4% of homes bought with cash were purchased by trusts. PropertyRadar attributes a large portion of the sales to a new trend that they have termed Millennial Phantom Ownership. Basically, parents and grandparents of Millennials have taken to buying them starter homes or condos, both to help their children get on their feet and to safely invest their own excess cash.

House flippers might be wise to focus on these phantom Millennial owners and also look for up-and-coming markets where prices have not gotten quite so high. The other option is to turn to luxury house flipping, but that obviously requires quite a bit of capital.

Wherever you’re focusing your attention in the current marketplace, ZINC Financial has house flipping loans that can help you achieve your goals. Our residential rehab loans offer competitive rates and can be funded in just seven to ten business days. Give us a call today at 559.326.2509 to learn more about our fix and flip loans and current promotions.

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Posted in Fix & Flip Loans, Fix & Flip Tips, House Flipping, Real Estate News, Rehab Loans, Rehabbing Tips

Take Advantage of Our Deal Analyzer

When people think of flipping houses, they usually think of the excitement of purchasing a rundown property, making great renovations, and remodeling the place to look like a million bucks. The hands-on work is what appeals to a lot of potential house flippers, so it can be a bit of a letdown when they realize how much math and research has to happen before all of that.

Finding the right property to flip takes careful consideration and calculation. No one can predict with 100% certainty what will happen in the housing market, but you can make your investment much safer by taking the time to calculate everything out.

Fortunately, this task is made easier with the ZINC Financial Deal Analyzer. This proprietary tool helps you calculate your expected returns on any given flip.

To use the tool, start by inputting the address of the property and the type of property that it is. Next, you’ll need to enter several different figures relating to the value of the property, your estimated taxes, and your estimated costs.

For example, the Deal Analyzer asks for the initial purchase price, the expected after repair value, the estimated hold time, and your anticipated interest rate on your fix and flip loans. You’ll also be asked to include origination points on your house flipping loans, any title and escrow fees, and other fees such as the real estate agent’s commission, if applicable.

With all this information in place, the Deal Analyzer will help you determine whether or not a house flipping project is worth your while. If the expected ROI is too low, you should keep looking for other properties to purchase. If the ROI is high, you’ll be able to quickly apply for a house flipping loan with ZINC Financial.

The tool is most effective when you can be accurate about the numbers that you’re inputting. Your best guesses are fine for an initial inquiry, but you’ll need to figure out your exact costs as best you can before you move forward. This is to help minimize the risk of your investment and ensure that you are being wise with your hard-earned money. Remember that fix and flip investing is a very competitive market. The people who are most successful are those who are most prepared.

You can give the Deal Analyzer a try for yourself by clicking here. You can also give our office a call to learn more about our loan programs or to ask questions about a house flipping project that you’re considering. We’re happy to help in any way we can.

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Posted in Fix & Flip Tips, House Flipping, Rehabbing Tips

Our House Flipping 101 for New Investors

House flipping is an exciting and potentially very lucrative career path. Whether you’re approaching retirement and looking for a fun new challenge or a budding young entrepreneur hoping to make a mark in the house flipping industry, there are a few things that you need to know in order to succeed in this business. Here is our best house flipping 101 advice:

Don’t expect it to be easy

A lot of people watch house flipping shows on TV and think, “I could do that.” Yes, you can do that, but it’s not nearly as simple as it looks on the home and garden channel. House flipping takes a lot of hard work, time, and research. You need to be prepared to do the leg work of finding an ideal investment property, calculating all of your costs, and accurately assessing your potential revenues. Far too many people think they can take up house flipping as a hobby and still make great money. This simply isn’t the case. In order to succeed in this business, you have to be prepared to learn the industry inside and out.

Expect it to be competitive

Now that the housing market has stabilized and foreclosures are minimal, the rehab market has become much more competitive. It’s not uncommon for an ideal house flipping property to receive dozens of bids from competing house flippers. This is another reason that you need to be truly prepared. By doing your homework and securing your house flipping loans early, you can set yourself apart from the crowd.

Remember to weigh your other options

House flipping isn’t the only way to make great money in the housing market. If you’re looking for a more relaxed but still lucrative investment opportunity, you might want to consider rental real estate investing. By purchasing a property, renting it out for a few years, and then reselling it when the market is ideal, you can make passive monthly income and a great final payday. Remember to look not just at apartment buildings but also single-family homes, which many people — especially young families — are interested in renting.

Never underestimate the importance of a great team

The house flippers who do best are those who have professionals that they know they can rely on working by their side. Your team should include an excellent contractor, an experienced realtor, a savvy accountant, and a reputable private money lender. A lender like ZINC Financial can help you secure residential rehab loans to better leverage your capital and be more competitive in the house flipping market.

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Posted in Fix & Flip Loans, Fix & Flip Tips, House Flipping, Rehab Loans, Rehabbing Tips

Options for Financing Your Fix and Flip Investment

Financing house flipping projects entirely out of your own pocket is almost never a good idea. While it’s very possible to make excellent profits with fix and flip investing, there’s also a fair amount of risk involved, so you don’t want to be in a position where you’re putting your entire life’s savings on the line. Instead, it makes sense to turn to other financing options. These are the four most common:

Hard Money Loans

Hard money loans are usually provided by lending companies to novice investors. They are not well regulated and tend to have the least favorable terms for investors. A hard money loan might be the easiest kind of loan to obtain, but it will come with the most strings attached. You’re also unlikely to get much support or guidance from a hard money lender — they may or may not care whether your house flipping projects exceeds.

Private Money Loans

Private money loans can be offered by individuals or by licensed lending firms. (ZINC Financial is a licensed private money lender.) The house flipping loans offered by private money lenders are usually available to everyone from novice house flippers to highly experienced investment professionals. In general, the rate you’ll be able to obtain depends upon your level of experience. With a private money loan, you should expect to front at least a portion of the home purchase price yourself. This is a good faith measure that is required by most private money lenders to show that both you and the lender have something at stake.

Private money lenders can offer fix and flip loans ranging from about $25,000 to over $1 million, depending upon the size and success of the firm. One major advantage of working with a private money lender is that you can expect to have your loan in hand within a matter of days, rather than weeks or months.

Bank Loans

Usually only highly experienced investors utilize bank loans for house flipping purposes. Bank loans generally come at a better rate than private money loans or hard money loans, but they also take much longer to obtain. You’re also very unlikely to secure a bank loans for the full amount that you need for a house flip.

Joint Ventures

Another good option that can be utilized by experienced house flippers is joint ventures. A joint venture can be entered into with one or more partners who will front some or all of the investment costs in exchange for an equitable split of the ultimate profits. If you’re considering a joint venture with a friend, make sure to be clear about the terms of the deal up front. Handshake agreements are never a good idea when talking about hundreds of thousands of dollars.

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Posted in Company News, House Flipping, Joint Ventures Real Estate, Rehab Loans, Rental Real Estate Investing

We’re Offering Competitive Rates and Terms till June 30th

The market is still looking incredibly favorable for both house flippers and buy and hold investors. Around the country, home prices are steadily rising while the unemployment rate remains low, and people are feeling more confident about entering the housing market for the first time. At the same time, rents are on the rise, which means that landlords are making exceptional profits (and enjoying great tax benefits).

If you’ve been toying with the idea of investing in the housing market, or if you’re an experiences house flipper looking for more cash flow, ZINC Financial is offering a promotion to help push your plans forward this summer.

From now until June 30, 2016, ZINC is offering a 9.99% rate on new residential rehab loans. These loans come with a 1.5% fee, a nine month term, and all of ZINC Financial’s normal underwriting. This offer is valid on loan of $250,000 or more.

We are also offering a promotion on rental real estate investing loans. Through the end of June, we’re offering our buy and hold loans at a rate of 6.99% for 48-month fixed loans.

ZINC’s house flipping loans are some of the most competitive and well-respected in the business. We routinely fund new loans in seven to ten business days, and sometimes faster. We also provide preapproval on loans, giving our clients an essential bargaining chip when making offers on new investment properties. Our commitment to service has helped us cultivate mutually beneficial relationships with our clients that have lasted for years.

We enjoy working with both novice and highly experienced investors. With new investors, our goal is to be as helpful as possible, providing resources and guidance so that you can enjoy a long and prosperous investment career. With more experienced house flippers and rental real estate investors, we strive to provide loans that are as favorable for you as possible, befitting your years of experience.

Learn more about ZINC Financial’s loan programs, as well as our current promotion by giving our office a call at (559) 326-2509.  Remember to ask about our new Joint Venture program, as well.

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Posted in Company News, Fix & Flip Loans, Real Estate News, Rehab Loans

Your Top Tax Breaks as a Landlord

No one is a fan of tax season. It can be a real hassle getting together all of your financial records for the previous year and understanding the sum total of your tax obligations. But, if you started buy and hold investing in 2015, tax season has a silver lining. When you begin rental real estate investing, you become a landlord, and landlords enjoy a wide variety of tax deductions.

Be sure to work with an accountant or tax attorney to verify that all of your deductions are correct, but in the meantime, here is an overview of some of the biggest tax deductions that you can expect to take as a landlord:

  1. Loan points and loan interest

If you’ve taken out a buy-and-hold loan to fund your investments, you’ll be able to deduct both primary and secondary mortgage interest. You will also be able to deduct your mortgage points. Combined, these deductions will likely be your largest property related tax deductions.

  1. Any depreciation of assets

Each year, you can deduct the annual depreciation of property-related assets, including the value of the structure itself, the value of any improvements that you’ve put in place such as appliances, and the value of any equipment related to your landlord business, including business computers and printers.

  1. Repairs and maintenance

Any repairs that you need to do can be deducted in your taxes. This can include painting, fixture repairs, labor costs, and rental fees. You can also deduct the cost of regular maintenance, which can include landscaping, homeowner association fees, pool cleaning supplies, pest control, and janitorial items.

  1. Insurance premiums

All of your property related insurance premiums are tax-deductible. This can include fire and flood insurance, liability insurance, mortgage insurance, Worker’s Compensation insurance, and personal umbrella insurance.

This is just the beginning of what landlords can deduct. Other deductions include your utilities, trips to and from your rental property, the taxes on your property, and more. Again, speak with a tax professional in order to ensure that you are taking all of the deductions that you are due as a buy and hold investor.

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Posted in Buy & Hold Loans, Buy and Hold Real Estate, Rental Real Estate Financing

Overview on Our Rehab Loan Programs

At ZINC Financial, we offer house flipping loans for investors ranging from first-time flippers to serious industry pros. To make our residential rehab loans as beneficial as possible, we’ve broken them down into three separate programs.

ZINC Rehab Beginner

On the first tier, we have the ZINC Rehab Beginner loan. This loan is intended for investors who have completed less than three flips. Beginner loans can range from $50,000 to $800,000 for a term of nine months, with up to one 3-month extension. The rate on beginner loans starts at 10.99% with 3 points. The loan-to-value ratio can be up to 80% of the purchase price, and ZINC Financial can fund beginner loans within seven to ten days of approval.

ZINC Rehab Pro

The next level up is our ZINC Rehab Pro loan. This loan is intended for investors who have successfully completed and paid off three or more transactions within the last 12 months. These transactions can be with any lender — you don’t have to be a returning ZINC investor — though ZINC will require before-and-after pictures of the properties in order to assess the quality of your work.

ZINC Rehab Pro loans are available in amounts ranging from $50,000 to $1 million. They have a term of nine months with up to one 3-month extension and start at a rate of 9.99% with 2.5 loan points. The loan-to-value ratio can be up to 80% to 85% of the purchase price, and these loans can also be funded in as little as seven to ten business days.

ZINC Rehab Diamond

The ZINC Rehab Diamond loan is our premier house flipping loan. It is available to experienced investors with whom we have developed a strong working relationship and investors with excellent reputations in the industry. The ZINC Rehab Diamond loan is available in amounts ranging from $250,000 to $1.5 million. The term can be up to 24 months to allow for the extended rehab time of luxury flips. The rate on this loan is 9.75% with points starting at 2.5. Again, this loan can be funded in seven to ten business days.

To learn more about our house flipping loans, click here or give our office a call at 559.326.2509. We are happy to answer any questions regarding current promotions and our various loan programs.

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Posted in Fix & Flip Loans, House Flipping, Rehab Loans

Flip or Rent: the Pros and Cons

Flipping houses and rental real estate investing both have their fair share of challenges, and both have a number of great perks. If you’re trying to decide whether flipping houses or renting homes makes more sense for you, take a look at these pros and cons to help weigh your decision.

House Flipping Pros

House flipping can bring you amazing returns on your investments in just a few months. Great house flippers are able to make anywhere from 15% to 35% on their house flipping investments. House flipping also has the benefit of being a short-term commitment. You could either make a career of flipping multiple houses at once, or you can give your attention to a single flip for three to six months and spend the rest of your time on other pursuits. Rehabbing homes is a great choice for aggressive investors who have the time and energy to throw their whole weight behind a project.

House Flipping Cons

Flipping houses can be higher risk than other types of investing. There’s always the chance that things will go wrong, that you’ll run out of money for renovations, or that you won’t be able to find a buyer quickly on the tail end. House flipping can also be extremely competitive. If you’ve never flipped a house before, you’re going to want to do a lot of research and find trusted partners who have successfully flipped houses before to help guide you through the process.

Buy and Hold Investing Pros

A buy and hold investment strategy is a great way to make passive income. In addition to the profits you can make by reselling the house at an ideal time, you’ll earn monthly income from your tenants. Being a landlord comes with a number of tax benefits, and it’s something that you can do part time. A buy and hold investment strategy is ideal for someone who wants to earn extra income but doesn’t have the time or energy for house flipping.

Buy and Hold Investment Cons

While the risks are lower with a buy and hold investment, there’s still a chance that you’ll have trouble renting out your unit, which can cost you significantly as the months go by. Being a landlord means you also have to take care of maintenance issues and issues with tenants. You can help alleviate these troubles by working with a property management firm, but that is a cost that will eat into your profits.

In the current marketplace, there is ample opportunity for both house flippers and buy and hold investors. Whichever option you think is best for you, you can help reduce your risks and ensure that you make well-informed decisions by working with a private money lender like ZINC Financial.

We offer both house flipping loans and residential rehab loans at competitive rates. Give our office a call today at 559.326.2509 to learn more about your current investment options.

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Posted in Buy & Hold Loans, Buy and Hold Real Estate, Rental Real Estate Financing, Rental Real Estate Investing

Highlight on Spring House Flipping Trends

Spring is nearly upon us, which means that the ideal time for buying investment properties is winding down, and the ideal time for selling is ramping up. As you get ready to make the most of the spring housing market, here are some factors that you should keep in mind.

According to a new report out of RealtyTrac, house flipping in twelve metropolitan areas has reached a peak that was originally set in 2005. Profits in these areas are at a 10-year high for house flippers, who averaged $55,000 gross profit per sale in 2015. In the most expensive markets like New York and Los Angeles, profits exceeded $100,000 per flip.

Couple this with the fact that house flipping rates are now 5.5% of the total housing market. The number of investors who flipped at least one property in 2015 was at its highest level since 2007. At the same time, the number of flips per investor was at its lowest level since 2008. In other words, more investors are getting into the game, but many are only flipping one or two properties per year.

That means that this spring there will be a plethora of competition, but more experienced house flippers with strong financial backing are likely to outmaneuver their less experienced competitors.

It’s also important to note that spring will be very much a seller’s market. Housing inventories are hovering around a four-month supply. Realtors like to have at least a seven-month supply of listings heading into spring. With the current low inventories, sellers will have lots of buyers competing for their homes. This is great news for house flippers who have properties ready to sell over the next few months.

Additionally, the interest rate on 30-year fixed-rate loans has gone down this year, whereas everyone expected it to go up. This means that more people will be able to buy homes, and it should mean that home prices continue to go up by 4-5% this year.

If you are hoping to purchase an investment property this spring, act quickly. Prices will only go up as time goes on, so be sure to secure your house flipping loans as soon as possible so that you can be competitive in the marketplace.

Here at ZINC Financial, we are currently able to fund residential rehab loans within seven to ten business days. We can also provide investors with the necessary paperwork to show that their loan is preapproved. Give our office a call today at 559.326.2509 to learn more.

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Posted in Real Estate News, Rehab Loans, Rehabbing Tips

Key House Flipping Statistics

Looking at the data from 2015 and the expected trends for 2016, it looks like this year will be an interesting one for house flippers. While house flippers are still making excellent profits in markets like San Francisco, Los Angeles, and San Diego, the total number of flips is going down. In the second quarter of 2015, only 4.5% of all home sales were flips, and the numbers have been steadily decreasing from there. A large reason for this is that the number of foreclosed homes on the market is quite low. Only about 40% of flips in the second quarter of 2015 were of distressed properties. That’s the lowest number since 2007.

As a result, people who only focus on low-end house flips are not doing particularly well in this marketplace. In fact, low-end flips are experiencing the lowest ROIs, as it is very difficult in this market to get a low-end house for below market value.

That said, there are still excellent profits to be made at the high end of the market. Luxury flips tend to take more time and be quite competitive, but professional flippers who have the resources and energy are able to make profits between 20% and 33% on high-end house flips.

In 2016, prices are expected to rise another 3% nationally, and that figure should be higher in hot marketplaces. Flippers who will do best in 2016 are those who do their research, collaborate with strong teams, and maintain reasonable expectations. For example, you simply can expect to find a house for 20% below market value these days. But if you put in the time and energy, you can find an undervalued home in an up-and-coming neighborhood that, with the right renovations, will be extremely appealing to millennial buyers.

In 2016, you shouldn’t expect to churn out as many house flips as years past. Instead, each flip will require personalized planning and execution.

Success will also require the support of a strong private money lender. Here at ZINC Financial, we offer house flipping loans suitable for everything from low-end flips to luxury investments. All of our residential rehab loans are funded within seven to ten business days, and we can offer you the resources and guidance that come with successfully working in this industry year after year.

Give us a call at 559.326.2509 to learn more, and remember to ask about our current cruise promotion.

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Posted in Fix & Flip Loans, House Flipping, Real Estate Investment Blog, Real Estate News, Rehab Loans