We offer a great selection of Investment loans in redding
A Few of the Benefits
- Up to 80% Loan to Value for Single Family
- Purchase 2-4 Units up to 75% Loan to Value
- Fixed, Arms, & Interest Only Options
- Up to 2% back from seller for closing costs
- Close with in 30 Days
Why Invest in Real Estate
- Invest to get a great rate of return on your money.
- Invest to gain equity over a long period of time.
- Invest to purchase, fix up, & sell for a profit.
Buying a Rental? Here are some Do's & Don’ts
- Use an agent that has experience with purchasing rental properties.
- Always calculate your Return on Investment (We can help you with this)
- Location Location Location
- Be conservative when calculating the return on investment
- Do not purchase based on emotion. Always purchase based on logic.
- Do not purchase based on future potential appreciation. Unless you are getting a good rate of return.
- Do not buy unless you have at least 6 months reserves in the bank after purchasing.
How to Calculate Your Return on a Rental Property
- Add up the down payment + closing costs + repairs needed = Investment.
- Subtract the total monthly payment (PITI) from the gross amount of rent = Monthly Cash Flow.
- Add up any monthly expenses including property management fees, monthly repairs exc and subtract this from the Monthly Cash Flow = Net Cash Flow
- Multiply the Net Cash Flow by 12 = This is the yearly profit of the Rental.
- Divide the Yearly profit into the total Investment from #1.
Example: $130,000 4-Plex Purchase:
Investment = $32,500 Down Payment + $5000 Repairs + $3,000 Closing Costs = $40,500 is the total Investment
$2,000 Total Rental Income – $714 Monthly payment = $1286 Monthly cash flow
$250 Other Monthly Expenses – $1286 Monthly Cash Flow = $1036 Net Cash Flow
$1036 Net Cash Flow x 12 Months = $12,432 Yearly Income
$12,432 Yearly Income / $40,500 Total Investment = 30% Rate of Return
Get a free list of duplexes and fourplexes in the area.
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Pete was outstanding in getting our loan. He knew exactly what we could and could not do. If there is any way that he can help you to get your loan, he will do so.