San Francisco, San Jose, and Santa Clara all have excellent opportunities for rehab real estate right now due to improved real estate conditions.
Clovis, California (PRWEB) June 17, 2014
ZINC Financial, one of the premier private money lenders for real estate in California, is urging house flippers to consider investing in properties in Northern California thanks to the current unprecedentedly desirable market conditions. According to an article by CBS San Francisco published on May 3, 2014, homes in San Francisco are currently going for 12% over the initial asking price, on average. Realtors in the area are using the phrase "overbid madness" to describe the current housing situation. ZINC Financial is encouraging house flippers to seek out investments in San Francisco and the surrounding areas with an offer of $750.00 off fees for first time loans.
"San Francisco, San Jose, and Santa Clara all have excellent opportunities for rehab real estate right now," Todd Pigott, President of ZINC Financial said. "However, these market conditions aren't going to last forever. If investors want to make the highest possible ROI in Northern California, they need to get into the game as soon as possible."
Part of the reason for the urgency is that home prices go up during summer months. A home purchased at the beginning of the summer and flipped by the end of the summer stands to make significantly higher returns than a home purchased at the end of summer and flipped in the fall. Additionally, there is little telling how long these increased prices will last. Experts agree that the end can't be more than a few years away, and will likely coincide with a significant bump in the construction of new homes.
According to CBS San Francisco, if no new homes went on the market in San Francisco, the city would run completely out of homes for sale in just five weeks. The extreme dearth of homes is leading to bidding wars on virtually every property that goes up for sale, and multiple properties have recently sold for hundreds of thousands of dollars above the asking price. Most recently, a modern two bedroom home in Glen Park was purchased for $2.1 million, $600,000 over the asking price.
"What's happening is that there are so few homes on the market that buyers are ending up in bidding war after bidding war. As a result, many buyers get desperate and decided to offer substantially over the asking price just so they can buy any house and be done with the hassle of bidding," Piggot added.
And San Francisco isn't the only Northern California city that is seeing high demand for a limited inventory of homes. According to a new report out of Clear Capital published on May 5, 2014, Sacramento, Fresno, San Francisco, and San Jose (plus their surrounding areas) are on the list of the top 15 highest performing major metropolitan housing markets in the United States. The list is based on the percent increase in home prices between the final quarter of 2013 in the first quarter of 2014. Sacramento saw a 2.1% increase over the course of the quarter, and San Jose saw an increase of 1.4%.
"These steady increases show that the housing market across the state is stabilizing, which is improving buyer confidence," ZINC Financial VP of Business Development Tom Valentino commented. "The trick for rehab investors is going to be getting into the market while demand is still incredibly high and prices are still on the rise."
The main challenge facing many individuals interested in residential real estate investing is purchasing desirable properties in the first place. House flippers are not immune to "overbidding madness" when they attempt to purchase properties to rehab. "The best way to give yourself a fighting chance is to have your rehab financing lined up in advance," Valentino noted. "Investors who have rehab loans in place before they make a bid are able to make cash offers, giving them a huge advantage over everyday home buyers in the hottest California housing markets."
As a way to encourage new investors, ZINC Financial is currently offering $750.00 off fees for new client's first rehab loans. This offer will remain in place until the end of 2014. Contact Tom Valentino for the full offer details by calling (559) 326-2509.
About ZINC Financial
ZINC Financial provides reliable rental real estate financing to qualified property investors throughout the state California. Known for offering exceptional service and some the fastest processing times available, ZINC Financial has helped countless clients achieve their property investment goals. ZINC Financial offers real estate rehab loans as well as buy and hold loans to experienced investors and house flippers. The team at ZINC provides clients with the advice and resources that they need in order to achieve maximum ROI.
Partnering with ZINC Financial gives clients the buying power to move quickly and effectively in the ever-changing housing market. With ZINC, investors can get the necessary cash to invest in multiple properties, finish projects sooner, and achieve greater returns. To learn more about the services and rates offered by ZINC Financial, contact the company today by visiting http://www.ZINCFinancial.net or calling (559) 326-2509.