Last week I met with a client who has been buying investment properties almost monthly over the last 2 years. His excitement for the opportunity was contagious, and his return on investments this year will make anyone a believer that this is a market you don’t want to miss.

This client was one of several I have worked with over the last 6-12 months, who is betting against the media and skeptics, and stepping out into the market. For this guy it is simple. Buy properties no one can finance with cash, fix them up, and sell them for 20%+ above acquisition. It is seems to be working every time.

Well, we know that cash is king, but what about those of us who do not have the cash to purchase income properties? Does the same opportunity exist?

I will tell you with certainty – YES.

One client of mine bought an income property for $155,000 last spring, and put 20% down. His mortgage payment was $881 per month, and this house rented for $1300.

Immediate cash flow = $419 per month.

This story and many like it are becoming the norm for people taking action and investing in income properties here in Shasta County.

Millions of middle to upper class Americans have filed bankruptcy, lost their homes to foreclosure, short sales, etc, leaving their bank accounts drained, and their credit profile shot. This has created an opportunity for what I call First Time Investors to jump into the market and invest in real estate.

Here are the facts…

Prices of homes are at record lows. They may drop lower, but as I indicated in my last blog, if they drop by 10% and rates go up by 1.5% you lose. (unless you are paying cash)

Mortgage Rates are STILL GOOD! Yea, sure they are going up a little. Did you really expect them to stay down that low forever?

Rental Market is Booming – People with GOOD incomes are still losing their homes. They are going to have to rent somewhere.. Why not your house?

YOU too can invest in real estate. (or at least you should take a serious look at it)

Here are a few ways you can do it…

10-20% down with a conventional mortgage. (higher down required for non-owner occupied properties

3.5% Down with an FHA Loan (buy a multi unit property and occupy one of the units)

Cash/Hard Money/Short Term – Refinance into long term

There are some creative ways to get into purchasing and financing income properties, and we would love to assist you.

Call us today for a consultation of the best Redding home mortgage loans to consider.

Chris

“We attempt to be fearful when others are greedy, and to be greedy when others are fearful” – Warren Buffet – Multi-Billionaire/CEO of Berkshire Hathaway