Investment Loans

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

DO's

  • 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

DONT's

  • 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.

Interested in other types of purchase loans or refinancing options?

Were you affected by the Carr Fire?

Federal Administration Disaster Loan

  • 100% Financing for Victims
  • Complete Loss or Damaged home
  • Purchase within 1 year of the disaster
100% Financing

13 Down Payment Programs you have NOT heard about - Get The Facts

  • Other lenders will not share these programs with you
  • These programs are for your 1st or 2nd Home
  • Instructions on where to apply for these programs

How To Shop For Your Mortgage

  • Learn the 3 ways to pay closing costs
  • Learn how to avoid paying PMI or Mortgage Insurance
  • Learn how to shop for your mortgage
  • Learn how to get the lowest interest rate and the lowest closing costs