What Successful House Flippers Know

HGTV has given many would-be house flippers the impression that flipping homes is easy. Nothing could be farther from the truth. House flipping is in fact a job, and it’s a job that requires a great deal of skill, planning, dedication, and personal investment. Reading a few house flipping tips articles isn’t enough to get you started. Here’s what successful house flippers understand about this business:

You can’t flip houses with no money down.

Ok, technically you can flip a house with no money using a hard money loan, but that’s a really bad idea. Experienced house flippers expect to pay at least 20-25% of the purchase price out of their own pocket. The rest can come from a private money lender, but that first chunk is needed to show such lenders that you mean business and have skin in the game, so to speak. House flipping loans can help you do more with your capital and are recommended for mitigating your risks, but you can’t expect a private lender to simply hand you a house. It doesn’t work that way.

House flipping is a full-time job.

You can work on a house flip on the weekends or do it casually in your retirement, but don’t expect to make any money that way. The most successful house flippers work 40 hours a week — and sometimes much more — researching potential properties, making offers, negotiating supply costs, and making connections.

You’re only as good as your house flipping team.

A successful house flipper is someone who is backed by a great team. At a minimum, that team should include an excellent general contractor, a real estate agent, and an accountant. You might be able to fill one or more of those roles, but you won’t be able to do everything yourself. Finding great people who you enjoy working with will make your flips more successful and your life much easier.

House flipping isn’t about perfection.

Many novice house flippers get caught up trying to make their flips perfect. They invest in the best materials, incorporate their personal tastes, and/or invest in renovations that won’t pay out. This is a good way to waste your private money loans and waste a lot of time. House flipping is about making macro changes that have clear ROI. Sometimes a fresh coat of paint makes more fiscal sense than a new set of cabinets. Often, leaving the old windows in place and updating the floors instead is the right call. Rather than trying to make your flip perfect, make it better. That’s enough to bring the best ROI.

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Posted in House Flipping, Real Estate News

More Investors Seeking House Flipping Loans

The number of rehab investors who utilize house flipping loans has been on the rise over the last decade. In fact, a recent report out of ATTOM Data Solutions found that a full third of house flippers used financing to flip properties in the first quarter of 2017. That was a significant increase from the previous quarter (31.9%) and a jump from the same quarter one year prior (29.5%). The percentage of house flippers using some form of financing was the highest it has been since the third quarter of 2008 when 37.6% of house flips were purchased with financing.

This house flipping news isn’t surprising, because there are numerous benefits of completing house flips with financing. A house flipping loan allows investors to:

  1. Invest in multiple properties at once.

If all of your assets are tied up in one flip, that closes other doors. Especially with home prices as high as they are, it makes sense to take out a fix and flip loan to increase your available capital and work on multiple projects at the same time.

  1. Mitigate risks.

If your entire life savings go into a fix and flip project, you’re asking for a disaster. It never makes sense to put all of your eggs in one basket. Fill part of the basket with someone else’s eggs, and you’ll be in much better shape if things go wrong with your flip.

  1. Invest in bigger projects.

As previously mentioned, home prices are incredibly high at the moment. Many of the most successful investors in the house flipping industry are turning their focus to high-end properties and apartment complexes, both of which offer exceptional ROI potential. But making those investments requires a great deal of capital up front. This is where a private money loan can completely change the game.

  1. Ensure cash flow.

Nothing ruins a fix and flip schedule faster than a lack of cash flow. A house flipping loan can provide needed funding for renovations, helping investors stay on top of unexpected expenses, keeping their projects moving forward.

To learn about the fix and flip loans offered by ZINC Financial, give our office a call today at 559.326.2509.

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

Things to Look for in a Private Money Lender

Choosing the right private money lender for your house flipping loans is about more than just the numbers. Of course, the numbers are important, and the terms of your loan should be a top consideration. But don’t make the mistake of simply comparing loan top-sheets. Two rates might look the same, but actually be quite different.

Priority One: The Loan Itself

You’re likely to go with the private money loans that offer the best terms. That makes a lot of sense, just as long as you are thorough in your analysis of those terms.

Is the private money lender underwriting the loan, or are they a broker? If they’re a broker, they’re taking a cut that wouldn’t be part of the deal if you worked directly with the people who control the money.

Beyond the rate, what kinds of points and fees are tied to your loan? An extra loan point could cost you thousands of dollars down the line.

Will you be penalized if you repay the loan early? Will you be able to use any of the funds for rehab costs? These are the sorts of nuances that you need to be keenly aware of when comparing private money lenders.

Priority Two: The Relationship

If you’re looking for a lender to hand over the cash and get out of your way, that’s fine. But you may prefer a lender who’s in your corner, able to provide insider house flipping tips and share the personal experiences of other similar clients.

Maybe you want a lender who is more of a partner, even willing to go in on joint ventures with you, if that’s what you’re interested in.

Perhaps most importantly, you probably want a lender who can be flexible with your loan terms as you become more experienced. The more loans you complete with them, the better rates they’ll offer.

Priority Three: Professionalism

You need to be able to rely upon the reputation of your lender. You need to know that when they say you’ll have your funds in two weeks, they actually mean two weeks. You also need to be able to get in touch with your lender easily, be treated with respect and courtesy when you call, and know that your business means something to them.

At ZINC Financial, we underwrite all of our own loans and fund house flipping loans in seven to ten business days. We strive to make our application process as pain free and quick as possible, with most applications answered in 24 hours. We value our clients as partners, and we look for new ways to serve their needs day by day, flip by flip.

To learn more about our current loan programs, give our office a call at 559.326.2509.

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

Real Estate Trends to Watch for in Fall of 2017

It’s nothing but good news for house flippers this fall. All of the real estate Fall 2017 trends follow what we’ve seen over the last few years – low inventories, rising home prices, increased buyer confidence, and rising rents. Whether you’re looking for your next buy and hold property or looking to break into the house flipping industry for the first time, your timing is excellent.

Let’s take a look at some of the numbers:

  • ATTOM Data Solutions reports that homeowners who sold their homes in the second quarter of 2017 enjoyed an average price gain of $51,000 and an average return of 26%. That was the highest average price gain since 2007, when those numbers were $57,000 and 27%.
  • In a separate report, ATTOM Data Solutions found that the total number of new foreclosures in the US during the first six months of 2017 was 428,400. That marks a 20% decrease from the same period one year prior. Despite these drops, house flipping remains incredibly strong as more flippers turn to private funding, larger flips, and more stable business models that don’t rely on predatory practices.
  • com crunched the numbers (again, from ATTOM Data Solutions), and found that in 2017, house flippers are making gross returns of 48.6%. They estimate that 20% to 30% of those returns go toward covering expenses. Owners of rental properties are making 13% ROI, on average, this year. And your own home is likely to have appreciated 10% this year, with a 5-year appreciation of 44.8%, on average.
  • com also reported that the for-sale housing inventory across the nation dropped 1% between August and September and is down 9% from September 2016, which is pushing home prices up. The median time on the market for properties listed on realtor.com was 69 days in September, which is eight days less than the same time last year.

Put all of this house flipping news together, and it means we are looking at a seller’s market that is expected to continue for the next several months. Typically, home buying tends to slow down in late fall and winter, but those anticipated dips are unlikely to have a major impact on these overarching trends.

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

What is Debt Coverage Ratio?

You may have seen the term “DCR” or “DSCR” while learning about flipping properties and had no idea what it meant. One of the downfalls of property investors is that we use far too many TLAs – three letter acronyms.

DCR stands for debt coverage ratio. DSCR stands for debt service coverage ratio and means the same thing. Understanding your debt coverage ratio is an important part of understanding whether your house flipping or buy and hold investment is actually a good deal. It will also be important for securing house flipping loans.

Your debt coverage ratio is used to measure your ability to pay a property’s monthly mortgage payments with income generated by the property. It’s a simple guide for assessing how much you can make on a property each year (or how much you’ll lose).

To calculate the debt coverage ratio, you need two numbers. First, you need to know the net operating income (NOI) of the property. This is the total amount of money that you can make off of the property every year by renting it out. Next, you need to know the annual debt service (this is where the S in DSCR comes from). The annual debt service is the total cost of your mortgage payments for one year including any accrued interest but excluding any escrow payments.

To get your debt coverage ratio, simply divide the net operating income by the annual debt service.

Here’s an example:

Say you’re renting out a small single family home, and you’re bringing in $38,000 annually in net income from the property, but your mortgage payments are $28,500 annually. When you divide 38,000 by 28,500, you get a debt coverage ratio of 1.33. That means that you are making 33% on the property every year.

Why does the DCR matter if you’re planning to flip a property? Because you always need a backup plan. If you’re unable to resell an investment property quickly, the best backup plan is usually to rent it out for a while in order to keep paying off your house flipping loans and avoid major losses. Most private lenders look for a debt coverage ratio of at least 1.25. The higher the ratio the better, generally speaking.

To get more helpful house flipping tips or to learn more about how to properly calculate your DCR, give our office a call at (559) 326-2509.

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Posted in House Flipping

Numbers Show The Bay Area is in Demand

The fact that the Bay Area is one of the hottest housing markets in the country isn’t exactly ground-breaking house flipping news. But you may be surprised to learn just how much home prices have increased here over the last five years.

According to The Mercury News, home prices in the Bay Area have effectively doubled over the last five years. You now need to make at least $179,390 per year in order to afford a median price home in the region. That median price point sits at $895,000.

The numbers get even more extreme when you focus in on the Bay Area’s most desirable areas. For example, the median home price in San Francisco is currently $1,450,000; in San Mateo it’s $1,469,000; and in Santa Clara County it’s $1,183,440. Put in terms of buyers, only 12% of potential buyers in San Francisco can afford a median priced home, only 14% can buy in San Mateo, and only 17% can buy in Santa Clara.

Affordability is a problem for buyers all over the state. When you look at California as a whole, the minimum family income needed to buy a median priced home is $110,890. The statewide median price is $553,260.

What does this mean for the house flipping industry?

The Bay Area still has some of the most lucrative markets for house flippers. The biggest gross profits routinely come out of San Francisco and Santa Clara. But traditional house flipping strategies may not be as effective here. There aren’t exactly a lot of underpriced properties or homes in a state of extreme disrepair. You can’t really focus on the low end of the market in the Bay Area, because the whole market is at the high end.

What house flippers can do is look for luxury homes that are out of date or in need of some smart remodeling. By opening up floor plans, updating fixtures and décor, and making some simple cosmetic fixes, house flippers can make excellent profits in the Bay Area.

The trick is getting your foot in the door. To be competitive in this market you will absolutely need to be able to make a cash offer, so having your financing in place ahead of time is a key part of being able to come out on top when an ideal property comes on the market.

Give our office a call today to secure your rehab loan pre-approval and take advantage of this exceptionally strong housing market.

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Posted in Real Estate News

What’s Going on with California Foreclosures?

House flipping and foreclosures: they generally go hand-in-hand. People who are new to the business often think that house flippers depend entirely upon new foreclosures. But foreclosures are way down in California, and house flipping is up. How can that be?

The Numbers: Foreclosures & Flips in California

In 2016, foreclosed homes represented about half of one percent of all housing units in California. Altogether, that’s 78,646 foreclosure filings in the state last year, according to ATTOM Data Solutions. As a point of reference, those figures represent a 15% decrease in foreclosures from 2015 and a staggering 85% decrease from their all-time high in 2010.

Alternatively, across the country house flips made up 5.7% of all single-family home and condo sales in 2016.  In California, the rate of house flipping was substantially higher. Home flips made up 10.1% of all California home sales in 2016, also according to ATTOM Data.

Factors Driving the House Flipping Market

With so few foreclosed properties, the house flipping market is being driven by a variety of other factors. First, home prices are still on the rise thanks to low supply and a strong economy. Second, flippers are expanding their horizons and looking into a wider array of market types. And third, the amount of available capital for house flipping loans has gone up substantially in recent years.

More and more house flippers are turning to outside sources for financing, making it possible for them to invest in bigger flips and more of them. In 2016, 31.5% of all rehab properties were purchased with financing, a six-year high. Altogether, there was about $12.2 billion in financing invested in house flips, a nine-year high.

The house flipping tips that made sense in the 1990s and early 2000s are a thing of the past. The market no longer relies on foreclosures but instead relies on smart investors ready to look for unique opportunities and take part in advantageous financial partnerships.

If you’re considering getting into the growing house flipping market, give us a call to learn more about the current market trends. Our experienced team can help you get a sense of what exactly goes into a house flip and provide you with fast, reliable funding if and when you’re ready.

Posted in Real Estate News

Guide to Using Our Deal Analyzer

All the house flipping tips in the world won’t save your flip if you don’t take the time to do the math before you make your investment. Being diligent about the numbers upfront can save you a great deal of time and energy, as well as a great deal of money.

But where to get started? If you’re new to house flipping, the necessary math might feel a bit overwhelming. Fortunately, the ZINC Financial Deal Analyzer can help.

You can find our free Deal Analyzer tool here or from the homepage of our website. It’s the first link under the “Quick Links” section on the upper righthand side. Be sure to bookmark the Deal Analyzer for easy access in the future.

Using the Deal Analyzer is as simple as plugging in numbers and pressing “Calculate.” The analyzer will ask for some key financial information, including:

  • The purchase price
  • The estimated total rehab costs
  • The expected after repair value (ARV)
  • The estimated time it will take to flip the property in months
  • The size of the home flipping loans you’ll be needing
  • The interest rate on the loan
  • The loan points
  • The estimated property tax
  • And a few estimated fees

The more accurate you can be with these numbers, the more useful the Deal Analyzer will be. You may want to start by trying different number combinations to hone in on an appropriate investment range. But as you get closer to actually investing in a property, you will want to be precise with your numbers.

Once you plug all of your numbers in, the Deal Analyzer will generate a report for you including all of your inputted information and some key calculations about the proposed flip. You will get an estimate of the total holding costs, the selling costs, the total amount of cash needed to complete the project, and the estimated net profit. To keep everything simple and organized, you can print your results or save them as a PDF to look at later.

If you need help using the Deal Analyzer or if you’re ready to take next steps, give us a call at (559) 326-2509.

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

Acquisition Strategies Used by Experienced House Flippers

If your only method for finding new investment properties is surfing the MLS, you’re likely far behind your competition in terms of deals. We can provide you with all the house flipping tips in the world, but if you can’t find a property to rehab in the first place, they’ll all be moot.

Experienced investors don’t wait for properties to come on the market. They make properties come to them, and then they have their house flipping loans ready to go so they can move fast and make the best possible ROI. Here are four strategies for acquiring investment properties that you should explore:

  1. Direct Mailers

Top house flippers send out direct mailers that are targeted at owners of distressed properties. They hone their list and invest in direct marketing every month so that when people in their targeted areas are ready to sell, those sellers call them directly.

  1. A website

Best used in tandem with a direct mailer or other advertising campaign, a website lets people find out more about you without actually calling, which is a big step that most people aren’t willing to make without more information. A website gives them another way to reach out and for you to show how easy you can make it for the seller to get cash quickly for their run-down property.

  1. Wholesalers

There is a whole world of wholesalers who buy distressed properties and resell them to flippers in a matter of days. This essentially works as a finding service. (Wholesaling is also a good way to learn more about the house flipping business and make some quick cash before jumping in on your own flips.)

  1. Referrals

Networking is a key component of house flipping, especially if you want to flip houses on a large scale. The more realtors, contractors, and fellow house flippers you get to know, the more properties will start falling into your lap. Always have business cards on hand, and let everyone you meet know what business you’re in – you never know where your next referral might come from.

To learn more about any of these acquisition strategies, give our office a call at 559.326.2509. We’d be happy to answer any questions you may have and tell you more about the current terms of our house flipping loans.

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

How to Find Top-Notch Contractors for Your Flip

In the battle for worst people to work with, contractors give lawyers a run for their money. It seems that every house flipper has horror stories about contractors who fell way behind schedule, delivered shoddy work, or simply didn’t finish the job. Finding a great contractor is like finding the golden ticket – it can make all the difference in the success of your flip.

Fortunately, finding a great contractor isn’t nearly as hard as it used to be thanks to the wonder that is the internet. Now, you can use free resources like Angie’s List to compare multiple contractors side by side, read reviews, and check business licenses.

So the challenge these days isn’t necessarily finding a good contractor but finding the right contractor for your job. Here are our top suggestions for choosing a great contractor:

  • Shop around. Don’t hire the first contractor that you contact. Get in touch with at least three contractors and compare prices. You should also compare their terms – will they sign a contract, or do they work based off of handshake agreements? How long do they say the work will take them, and how precise are they with their projected costs? Remember that there is a huge difference between “it should cost” and “it will cost.”
  • Read reviews. Be wary of reviews that might be written by the contractor themselves. Look for a variety of reviews that are honest and thorough, not just singing praises but actually discussing details. The best reviews come from people you know, so ask around.
  • Check their work. Ask to see pictures of similar jobs. If they’ve never done a project quite like yours before, that should be a red flag. If they’re not willing to show you pictures, that’s another red flag. In any samples that you look at, pay close attention to detail. Look for what they might not be showing you.
  • Consider breaking things up. It might make the most sense to hire one person for the floors and another for the cabinets. General contractors are convenient because they can handle everything, but you’ll likely end up spending more by using a general contractor over specialists.

If you have more questions about how to choose a contractor or want more house flipping tips, give our office a call anytime at 559.326.2509. We can also tell you about our current house flipping loans and the latest market trends.

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

Guess Which Room Generates the Most ROI When Remodeling?

Which room would you think has the potential to generate the best ROI in a house flip? The master bedroom? The kitchen?

The answer is actually the bathroom. A mid-range bathroom remodel during house flipping has the great potential return on investment. If you put $3,000 into a bathroom, the expected return is $1.71 for every dollar spent.

If you think about it, it makes a lot of sense. Fixing up a bathroom doesn’t take all that much work if you know what you’re doing, but it’s an intimidating enough project that, if left undone, potential homebuyers won’t want to handle it themselves. Plus, tastes are usually pretty generic when it comes to bathrooms. A nice neutral tile, a pale color on the walls, and a nice big shower head will please just about anyone who walks in.

Compare that to a kitchen. Doing a full remodel on a kitchen during your fix and flip can cost anywhere from $10,000 to $30,000. For that huge investment, you might end up creating a kitchen that doesn’t suit the tastes of half your potential buyers. Perhaps you went too modern or too dark with the cabinetry or too small with the storage space. People have very particular tastes when it comes to kitchens, and the value added to the home simply isn’t enough to make a huge kitchen re-do worthwhile.

Instead, if the existing kitchen is in reasonable shape, you can add a fair amount of ROI by simply painting the cabinets and replacing the hardware. Upgrading the appliances might be worth your while, but that’s a judgement call.

Another room to avoid is the unfinished basement. Unfinished basements are right up there with kitchens as the worst return on your investment.

What should you do if your flip has an unfinished basement? Don’t touch it. Leave it unfinished, and potential buyers will love it. They’ll walk in and see endless opportunity. Maybe this buyer would make it a man-cave and that buyer would make it a giant playroom for their kids. If you leave it alone, they can do whatever they want with it. The same principle applies to backyards.

Whatever your rehab plans, ZINC Financial can help you achieve them with competitive rehab loans funded quickly and reliably. Give us a call at 559.326.2509 to learn about our current loan terms.

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Posted in Fix & Flip Tips, House Flipping

House Flipping: Our Big Tips for Big Returns

House flipping is both a science and an art. There are mathematic principles that should be abided by, but there’s also a fair amount of gut instinct and taste involved, both of which are nearly impossible to teach. You’ve heard us harp on the importance of doing your research and making sure the numbers line up before investing in any property, but aside from the math and the research, what are some things you can do to improve your ROI? How can you make your flips the most desirable homes on the market?

Here are our top house flipping tips for adding an extra punch to your profits.

  1. Get to know your market and design with your buyer in mind.

This may sound like a no-brainer, but you’d be amazed how often we see flips that don’t seem to have any regard for the intended buyer.

Is the house you’re flipping going to be best suited to a young family or a pair of retirees? Would it make the perfect pad for a young professional, or is it an upgrade house for people mid-way through their careers? Each of these buying groups is going to have different needs. The young family might love to have an office that could turn into a bedroom when their next child comes along. A bachelor or bachelorette might be more interested in a great entertaining space than spare bedrooms.

Likewise, the renovations you make should reflect the neighborhood. If you’re flipping a home set amongst stucco and tile roofs, you probably don’t want to go with a Victorian look.

  1. Educate your buyer.

When they do initial searches, buyers rely heavily on pictures and the descriptions provided by the seller. Make sure you use a professional photographer to show off your work, then put care and detail in your home description. Make sure to point out all the positive changes you made, especially changes that won’t be visible in the pictures. If you took out the 1950s plumbing and replaced all the fixtures, write that down. If you put in new windows, let everyone who walks in know. You should also put together a list of local amenities and highlight the scores of the local schools, if they’re worth bragging about.

  1. Don’t overprice.

This is a big one. We often see flippers trying to make back time they lost or unexpected costs by cushioning the asking price. Unless the market is extremely hot, this will likely scare away potential buyers and cause your house to stay on the market longer than necessary.

Starting with a reasonable asking price brings much more attention, especially since buyers can compare your asking price to the Zillow and Redfin estimates. If the price seems good, people will come in, fall in love, and be willing to pay over asking if need be to secure the house.

Of course, you can also maximize your profits by securing the best house flipping loans. At ZINC Financial, we fund loans in as little as seven to ten business days. Our clients come back to us for flip after flip. Give us a call today at 559.326.2509 to learn why.

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Posted in House Flipping, Rehab Loans, Rehabbing Tips

Creating a House Flipping Exit Strategy

One of the biggest risks of fix and flip investing is the risk that you won’t be able to resell the home in a timely manner and at a price that you’re happy with. It’s essential to have a plan before you begin any house flipping project as to what your projected final value will be. But even with all of the planning in the world, investors can’t always predict what the market will do.

If there is a sudden housing market crash, an unexpected major problem arises with your flip, or buyers simply don’t take to your property, what can you do to save your investment?

The best course of action is to have a house flipping exit strategy in place before you even get started on your flip. You should be working with solid projections as to your final value, target listing date, and an appropriate initial asking price. You may want to start with an aggressive listing price that is a little above market value and slowly lower the price if no buyers bite. Or you might want to start with a low asking price with the hope that multiple bidders will swarm and ultimately boost the final offer.

Whatever your initial plan, you should also plan for the contingency that the house stays on the market longer than you’d like. Maybe you can afford to keep it listed at a set price for a few months. Maybe you’ll need to take the listing down and rent the property as soon as possible to avoid big losses. Your preferred course of action will depend upon just how much capital you have at stake and how much you can afford to gamble.

If you already have a flipped house listed that isn’t selling and you’re not sure what to do, you’ll need to weigh your options quickly. If you haven’t already, here are a few steps you should consider taking:

  • Consult with a realtor to get an assessment of whether your asking price is too high. A good realtor can help you choose an optimal asking price to attract offers. You can and should also have a professional realtor arrange open houses to help you promote the property to more potential buyers.
  • Consider staging the home with furniture and getting professional photos taken. Sometimes it’s difficult for buyers to imagine the potential of a property without any furniture inside.
  • Double check your listings on house hunting apps. Make sure that your featured image shows off the best asset of the home, whether that’s its kitchen, huge backyard, or lovely street.
  • Considering finding someone to rent the home. A renter can help protect your investment and pay down your rehab loans while you wait for a better time to relist the home.

For more advice, give our office a call at 559.326.2509 anytime. We’re always here to help.

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Posted in Fix & Flip Loans, Fix & Flip Tips

What to Expect for Summer 2017 Real Estate

Summer is upon us, and the house flipping market is as hot as ever. Despite foreclosures being at their lowest rate since before the Great Recession, flippers across the country are making excellent returns on their investments. Homes purchased in the last few months and weeks are turning over quickly as more people head out to look for their newest home.

The housing market follows a predictable seasonal pattern. Things always slow down in the winter and then get hotter and hotter through the summer. The summer is the preferred time of year for families to move because the weather is nice (making packing up easier), they can line up their moves with vacation time, and they don’t have to pull their kids out of schools in the middle of a school year.

This summer, prices aren’t going up at an ungodly rate like years past, but they are still going up. And as more potential buyers start their home searches, we’re seeing more homes sell in just a few days and often for more than the asking price.

The most successful house flippers this year seem to be the ones working on multiple flips at once and turning homes around in a matter of just a couple of weeks. The key is to find homes that are out of date but solidly built. Such homes can be quickly and affordably renovated, leading to substantially higher selling prices in very little time.

Of course, in order to successfully juggle multiple house flipping projects, investors need strong sources of funding. With ZINC Financial’s house flipping loans, our clients are able to move quickly on ideal investment properties and get to work without worrying about having enough cash on hand to finish necessary repairs.

The top renovations that we’re seeing buyers respond to this summer are updated kitchens with modern, light colors and clean quartz or butcher block counters; laminate wood flooring throughout living rooms and bedrooms; and updated bathrooms that look fresh and unused.

To learn more about the latest house flipping trends or to discuss your house flipping funding options, give our office a call today at 559.326.2509. We can fund your next loan in as little as seven to ten business days at a competitive rate.

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Posted in House Flipping, Real Estate News

Rent Statistics that Should Excite Buy and Hold Investors

When homes are as expensive to buy as they are right now, rental rates go up. Across the nation, many people who could buy are choosing to rent instead, and many others are renting because buying is simply out of the question. For a plethora of reasons, renters currently make up a huge portion of the housing market, and their share is only going up.

As rent prices are going up, home prices are going up, too, creating an ideal situation for buy and hold investors. For the uninitiated, buy and hold real estate refers to the process of buying a home or apartment building, renting it out for a few years, and then reselling the property at a time when the market is peaking. This allows investors to make both monthly income from renters and a nice profit on the backend when they resell their rental property.

If you’re considering buy and hold investing, here are a few statistics from the Rental Protection Agency (as of March 21) that should interest you:

  • More than 111,000,000 people in the United States are renters. That’s more than a third of the entire population.
  • The rental rate is increasing. Every day 2,654 people become new renters.
  • The largest portion of renters are aged 25-34 years old. 27.9% of renters fall into this category. The next largest category is 35-44 year olds (22.7%), but there are also a fair number of people over the age of 65 who go back to renting in their retirement (13.6%).
  • In every US state, at least 25% of residents rent. The lowest rental rate is in Minnesota (25.45%) and the highest is in New York (47.01%). California and Hawaii aren’t far behind (43.09% and 43.49%, respectively). In the District of Columbia, 59.24% of residents rent.

Renters make up an important part of the real estate market. In both houses and apartments, renters make homes for themselves for the short term and for the long term. With the right buy and hold loans, investors can provide a beautiful home for a young professional, a family, or a retiree while earning monthly income and enjoying excellent tax breaks as a landlord. To learn more, contact the team at ZINC Financial by calling 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