Clovis, California (PRWEB) February 25, 2014
ZINC Financial, a premier private money lender serving California property investors, has announced the complete reconfiguration of its buy and hold loan program. The company is now offering rental real estate financing at interest rates as low as 7.49% for both returning and new clients. With these newly reduced rates, the company hopes to encourage more investors to take advantage of the ideal conditions currently available to buy and hold property investors.
"What we're seeing right now is a rare combination of increasing home prices as well as rising rents," Amber Castro, Vice President of Business Development at ZINC Financial commented. "Home prices are expected to go up this year as they did last year, but more people are choosing to rent. With a buy and hold investment strategy, our clients get the benefits of profiting from both buyers and renters over the course of the next few years."
California was recently named one of the top two states to flip a house in by USA Today. Only house flippers in Massachusetts make more money per flip, but California has flipped the most homes every year for the last three years running. In 2013, house flippers in California made an average gross profit of nearly $100,000 per home. But the house flipping market appears to be drying up in 2014. Homes are becoming less affordable and there are fewer foreclosed and undervalued properties on the market for house flippers to renovate. As a result, many real estate investors are looking for new ways to profit.
"At ZINC Financial, we truly believe that rental real estate investing is the ideal strategy this year," Castro added. "Of course, we still offer fix and flip loans and believe that there will always be a market for house flippers in California, but we want to encourage our clients to look at the benefits of buy and hold investing as well."
Buy and hold strategies are most lucrative when investors can hope to make ROI both on their property investment and on the rental income earned on a monthly basis throughout their investment. When both home prices and rent prices are on the rise, this creates an ideal situation for rental real estate investing.
In addition to rising prices, Forbes recently pointed out that home affordability is going down, and so are the number of people who are choosing to buy homes. The National Association of Realtor's home affordability index dropped to a five-year low in 2013, and that figure is expected to drop even further in 2014.
Furthermore, people who could buy will choose not to this year. Particularly Millenials -- the age group most likely to have been burned by the housing crisis -- will look to rent homes this year rather than buying. As a result, markets across the United States are seeing extremely low vacancy rates, which is driving up rent prices. Zillow predicts that rents will rise 2.5% across the nation this year alone.
In light of these factors, ZINC Financial hopes to encourage more investors to consider buy and hold strategies with its newly reduced loan rates. The company is also sponsoring and will be present at the Single Family Housing Investment Forum set for March 3-4th in Santa Monica, CA. "We believe that education is an investor's greatest tool. At the SFHIF, the ZINC team hopes to gain more insight into our ever-changing industry, and we're encouraging our clients to do the same. The forum is a great opportunity to network with other professionals, learn about new trends, and further your real estate investment career."
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 jobs sooner, and achieve greater returns. To learn more about the services and rates offered by ZINC Financial, contact the company today by visiting ZINCFinancial.net or calling (559) 326-2509.