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
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