CALIFORNIA
Frequently Asked Questions
No person may participate as a private lender or broker of consumer loans or commercial loans in California without obtaining a license from the California Commissioner of Business Oversight. Out-of-state private lenders that can make loans to California residents must be licensed in California as finance lenders.
Private Investor Money is available for Manufactured and Mobile Homes where the land of your home is placed and not offered as collateral for the financing.
If you don’t already own the land or lot where you plan to build in South California, the cost of the land will need to be included in the overall amount of the construction loan. You can definitely pay for the land upfront given the financial possibility. Otherwise, a larger down payment is on the books to qualify for the construction loan.
Prior to the completion of construction, you only need to make interest payments. Repayment of the original loan balance only starts once the home is completed. These loan payments are treated just like standard mortgage plan payments, with monthly payments based on an amortization schedule.
Yes, it will. When you apply to refinance a loan in South California, private lenders will check your credit score, credit history, multiple loan applications, and account closing. Refinancing a personal loan will cause a temporary dip in your scores due to the hard inquiries on your credit report. If you’re using a new personal loan to refinance more than one existing personal loan, you will need to open fewer accounts with outstanding balances to help boost your credit score.
Sadly, yes. Refinancing in South California can be a rigorous process which requires documents of home appraisal, income and assets, a review of your credit history and your debt-to-income ratio. Falling short of a private lender’s requirements could cause your refinance application to be rejected.
The 2% rule in South California states that if the monthly rent for a given property is at least 2% of the purchase price, it will likely produce a positive and desirable cash flow for the investor.
A sample of rental property profit in South California is buying a house for $400,000 and renting it out for $2,000 per month. After expenses of $1,000 per month, you get to pocket $1000 each month as a profit.
Homes are selling at way speed nationwide, forcing would-be buyers to make snap decisions on what is typically the biggest purchase of their lives. In South California, houses haven’t sold faster in at least three decades and it’s difficult to get houses that rent for 2% of property value.
Regardless of high property prices, South California is still one of the best states to have a good investment in real estate during 2020 because it was backed by a strong economy – the strongest in the nation.
Definitely! The rent yield and Return of Investment (ROI) of rentals in California is still positive. The economic recovery might be rocky but California remains to be one of the best cities to buy rental properties.
California is a seller’s market and home prices have reached new record-highs across all the regions due to the tight supply. Homes are moving nearly 46% faster than a year. Consumer Housing Sentiment Index for June 2021 found that only 19% of consumers believe now is the good time to buy a home in California and 81% think it is not yet a good time.
Yes, while you still have time. The California housing market is coming back slowly. Home prices are rising and rents are on the rise too. As an investor, the rent yield and Return of Investments (ROI) in California is looking pretty solid.
There is no shortcut to make money or get rich quickly in real estate, especially in South California, but you can slowly and steadily build wealth by investing wisely. If done the right way, real estate can be a great source to build wealth if you take the time to educate yourself about the process and the best ways to get great returns!
When you hear California, you may think of San Francisco, Los Angeles or San Diego. But here are other prettiest cities you can take a look at, especially if you’re planning to invest in real estate: Sacramento, San Jose, and Las Vegas.
Yes. In fact, Southern California home sales have already dropped by -45.6 percent, and the Central Valley by -26.6 percent.
There’s no guarantee conditions will cool in the hot Southern California market in 2022. In April, analysts predicted prices will still be up by double digits this December compared with the same month in 2020. By December 2022, the forecast prices could even jump another 6 percent.
2023 may still not be a good year to buy a house but we also recommend taking a wait-and-see approach. According to reports and analytics, new retail property is expected to significantly decline from 2020 through. However, vacancy rates have remained extremely low across all regions surveyed and sentiment about the coming three years shows an optimism that has not been seen for many years. A dramatic shift in buying habits to online shopping during the pandemic has likely changed household purchasing for the future.
Most analysts expect lumber prices to remain elevated through 2022 due to supply-chain disruptions and very few new mills are operating at 100 percent.
You would still own a home as you would if the market did not crash. You would only run into trouble if you had to sell it. Depending on the price you paid, the severity of the crash and your monthly mortgage payment. You can opt to stay, lease the home out, take a loss on the sale, or attempt a short sale.