WHY USE ZINC INVESTOR REHAB?
ZINC Investor rehab is a leader in the industry when it comes to financing for Rehab Investors. ZINC Funds Investor Rehab, sometimes called fix and flip, loans daily through out California and Arizona.
But why use ZINC for your investor rehab funding, isn't it expensive? That all depends on your structure. Below are four (4) true stories, although their names and loan amounts have changed. Perhaps after your review, you may understand that ZINC Investor Rehab financing is not that expensive after all.
The borrowers below have consented to the use of their stories.
|USING ALL CASH, IS THAT THE BEST RETURN ON INVESTMENT?|
|David Gonzalez lives in Sacramento and holds a valid contractors license. He currently has about $200,000 liquid. He uses this money to buy distressed REO properties, rehabs them and then resells them for a nice profit. He pays cash for the REO, spends approximately $25,000 on rehab repair work and sells them to net approximately $30-40,000 per deal. It takes David 45 days to rehab each project and it also takes David about another 3-4 months to list, market and close escrow on the sale before realizing his profit. Because David only has $200,000, this limits David to about two deals per year, netting David approximately $60-80,000 per year in income.|
|$200,000 equals $60-80,000 per year N.O.I, or 36% cash on cash R.O.I.|
|USING INVESTORS, IS THAT THE BEST RETURN ON INVESTMENT?|
|Pete Grover Lives in San Diego, and he is in the title and escrow business. Pete rehabbed and sold multiple SFR properties in the 80's and was very successful. A Physician friend has told Pete he will partner with him up to $500,000 in cash investment in exchange for 50% of the profits. Because of Pete's cash constraints, he only had $200,000 available at the time. Pete had to match investor cash by 40%, where the investor contributes 60% of the total project cost with Pete contributing the other 40%. Pete thought this was a fantastic idea, and purchased 3 homes at different times of the year in the San Diego County area, two short sales and one REO. Pete spent $47,000 rehabbing the first, which later proved to be too much, and netted $37,000 after the sale. The next two deals Pete spent $24,000 and $33,500 in rehab costs and quickly sold them for a $57,000 and $77,000 profit, netting $171,000 for the year, or $85,500 for the physician friend and $85,500 for Pete.|
|$200,000 equals $85,500 per year N.O.I., or 42.7 % cash on cash R.O.I.|
|USING A CONVENTIONAL LENDER IS LESS EXPENSIVE, SO IT MUST PROVIDE THE BEST R.O.I RIGHT?
|John Lewis, who is a very astute real estate investor, has been involved in real estate investments for 20 years. John called ZINC about their Investor Rehab loan, and was at first surprised at the rate and fees, and insisted Wells Fargo is substantially less. John proceeded with Wells Fargo and used them for the next two years. John has $200,000 liquid in his company. Wells Fargo requires 20% down on his investment properties. The issue is that Wells Fargo is taking about 90 days to see each loan through. In addition, 2 of the deals were not funded because of property condition, and John did not learn of this until 70 days into the loan submission. John ended up closing only two deals the next year, both in Orange County, the first netting $57,000 and the second netting $61,500, for a total annual net of $118,500. |
John was very successful, and the properties sold quickly and netted him a very nice profit, but the slow pace and lack of commitment from a conventional lender was hampering his ability to move quickly and close the deal. Furthermore, John was loosing out on about 50% of his offers, because he could not close fast enough, as most REO or Auction companies require investors to close deals within a few weeks.
|$200,000 equals $118,500 per year N.O.I. or 39.5% cash on cash R.O.I.|
|ZINC REHAB PRIVATE MONEY IS THE MOST EXPENSIVE, RIGHT?|
|Tim Wilson or Timmy as they call him has $150,000. Timmy has 3 sets of apartments, and has owned various other rental properties in his lifetime, mostly S.F.R. Timmy found a REO from Chase Bank and put in an offer for $95,000 however Chase would only accept it if he had a prequalification letter, which ZINC provided to him within 3 hours of his request. Timmy then opened escrow, and immediately deposited $20,000 as an earnest deposit.
He applied online with ZINC, sent in the required submission form and accompanied documents and was approved later that same day. ZINC performed some additional due diligence and closed the deal with Timmy in 8 days, also funding his rehab expenses. Although ZINC charges more than the conventional lender, and more than using his own cash, Timmy was able to leverage his money with ZINC's in order to get the deal closed in 8 days. Timmy rehabbed the property in Fresno, for $27,300 and sold it to a first time homeowner for a profit of $42,300, all in less than 4 months. Timmy went out and purchased 5 more properties, all REO (and one short sale) placing ZINC rehab loans on each one and closing each one in less than two weeks.
Timmy has resold all of the rehabbed properties and netted $42,300, $23,000, $37,000, $34,000, and $41,000 respectively. Timmy was able complete multiple deals at once because he was leveraging his own money with ZINC's capital creating exponential funding possibilities, all with quick seamless and simple closings.
|$150,000 equals $177,300 per year N.O.I or 118% cash on cash R.O.I,|
or 97% net R.O.I after ZINC's fees.
|Cash Only||36% Cash on Cash R.O.I|
|Cash and Investors sharing profits||42.7% Cash on Cash R.O.I|
|Conventional Lenders with low rates||39.5% Cash on Cash R.O.I.|
|ZINC Investor Rehab Financing||97%, net of fees, Cash on Cash R.O.I|
Call ZINC today and ask about ZINC Investor Rehab Financing.