We offer a great selection of investment loans options.
A Few of the Benefits
If you’re looking to invest in real estate, good options are available for financing. Megastar Financial is a very good choice for investment loans in Redding, CA, as we know the market locally and are willing to help customers invest.
- Up to 80% Loan-to-Value ratio (LTV) for a single-income family.
- Purchase 2-4 Units up to 75% Loan-to-Value. You may purchase two to four units at up to 75% LVT.
- Fixed, adjustable-rate, or interest-only options available.
- We’re prepared to close within 30 days.
- Renting out investment properties can help cover the cost of mortgage payments.
- You may benefit if the property increases in value
- Interest in home investment loans is tax deductible.
- Property investment is not necessarily as volatile as other forms of investment.
Why Invest in Real Estate
- Stable long-term returns: Homes are an extremely reliable long-term source of money.
- Strategic Investment: You can buy a home, repair it, and sell it for a profit.
Keep in mind that without a history of successful real estate investment, it may be difficult to secure a great investment loan. There are a few other difficulties with investment loans in Redding, CA to be aware of:
- Investors will be vulnerable to changes in the property market.
- Entry and exit costs associated with real estate investment are fairly high.
Buying a Rental? Here Are Some Do’s & Don’ts
- Use an agent who is experienced in buying rental properties.
- Know your Return On Investment (We can help you with this).
- As they say: Location, location, location. Think long-term when you buy.
- Be conservative when calculating ROI. Purchasing rental properties is a risk.
- Do not purchase based on emotion. Always KNOW exactly what you’re doing.
- Do not purchase based on assumptions about the future unless you are getting an excellent rate of return.
- Do not buy unless you have six months or more of 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 amount you will be paying (PITI) from the gross amount of rent = Monthly Cash Flow. (“PITI” sounds like “pity” and stands for monthly principal, interest, taxes, and insurance).
- Add up any monthly expenses including property management fees, monthly repairs, etc., and subtract this from the Monthly Cash Flow = Net Cash Flow.
- Multiply the Net Cash Flow by 12. This is the Yearly Profit from the Rental.
- Divide the Yearly Profit into the total Investment that you calculated in #1.
So, if your ready to get started with an investment loan in Redding, CA give our office a call. Our experts are ready and waiting to use their extensive knowledge of the local market to help you invest. Let us prove to you why Megastar Financial is the provider of investment loans Redding, CA investors trust.
MEGASTAR FINANCIAL CORP. is an Equal Housing Lender. DBO Lic # 603 G365 NMLS Lic # 235828(3043)*
Licensed by the Department of Business Oversight (DBO) under the California Finance Lenders Act * NMLS # 1162668.
As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, sexual preference, marital status, age (provided you have the capacity to enter into a binding contract), because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. We are regulated by the Fair Housing Act (overseen by HUD) and the Equal Credit Opportunity Act (overseen by CFPB), Washington, DC, 20580.
Example of 30 year mortgage:
$300,000 sales price, $60,000 down payment, $240,000 loan amount, 360 months, 3% interest rate, 3.132% APR, $1,029 Principle and Interest monthly payments, Payment does not include taxes, insurance premiums or HOA dues. The actual payment amount will be greater. Rates shown valid on publication date of June 29th, 2020. This example is for a conventional, not jumbo, mortgage product; there are restrictive upper loan amounts for conventional loans based on the property’s location. Example given requires a minimum 740 credit score with a debt to income ratio of under 45%. Applicant must be employed. This is not a promise to lend. All terms and conditions are based on the subject property, the applicant’s credit worthiness and the applicant’s ability to repay the loan.
15-Year Fixed-Rate Mortgage:
The payment on a $300,000 15-year fixed-rate loan at 2.723% and 80% loan-to-value ratio (LTV) is $1,626. The annual percentage rate (APR) is 3.178%. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Rates shown valid on publication date of June 29th, 2020. This example is for a conventional, not jumbo, mortgage product; there are restrictive upper loan amounts for conventional loans based on the property’s location. Example given requires a minimum 740 credit score with a debt to income ratio of under 45%. Applicant must be employed. This is not a promise to lend. All terms and conditions are based on the subject property, the applicant’s credit worthiness and the applicant’s ability to repay the loan.