Our Ground Up Construction Loan, with no LTC (loan-to-cost) cap and up to a 70% As Completed Value (ACV) offers the best financing solution for your next project.
An article published by Realtor.com this week contained some news that may not be a surprise to real estate investors, although the magnitude of the crisis might be:
“The United States needs at least 1.5 million additional homes, and likely many more, to relieve the nation’s housing shortage, according to Freddie Mac.” The article goes on to say: “To bring the vacancy rate, both rental and homeowner, back in line with historical averages, the U.S. would need to add an additional 1.5 million vacant for-sale and for-rent homes. ... Without such units, the pressure on housing markets will persist.”
If you have been sitting on the sidelines or only pursuing a portion of your possible real estate projects, know that now is a good time to “get off the bench” and get started on your first or next project(s).
New-Construction Homes Continue to Be Preferred by Buyers
If tackling something that needs dramatic repairs, such as a zombie home, seems too daunting, know this: According to an article published by the National Association of Home Buyers, in keeping with other recent news that echoed the same reality, “Faced with the alternative of choosing between an existing home and a newly built home, 61% of home buyers in a recent NAHB study* indicated a new home is their first preference.” In short, your energies spent constructing a new home, which can be supported with one of our Ground Up Construction loans, should be rewarded by a host of buyers.
Clearly, now is a great time to find your next investment opportunity. And if you qualify, the 100% financing opportunity from RFG means that you may even be able to afford to work on several properties simultaneously.
Unlike the Horror Movie Variety, Real Estate Zombies Can Be Profitable
Loosely speaking, zombie properties are those that are in limbo now, vacant and awaiting foreclosure. And “according to ATTOM’s newly released Q2 2024 Vacant Property and Zombie Foreclosure Report, 1.3 million (1,289,387) residential properties in the United States are vacant.”
ATTOM’s article that can be accessed below details the top 10 ZIP codes with the highest zombie foreclosure rates in the U.S. in Q2 2024. These would be an ideal place for you to start seeking a “diamond in the rough” (as these properties can be quite dilapidated) for your next fix-to-rent or fix-to-flip initiative.
Once you have secured a property, contact the professionals at RFG, who can articulate quite a few ways RFG can help you keep more money in your pocket during your project, allowing you to devote more to your property throughout your work. Your adviser will also walk you through our competitive financing packages, which include the 100% Fix & Flip Premier Loan and Ground Up Construction Loan (with no LTC cap).
In fact, ourFix & Flip Premier Loanallows you to borrow 100% of the purchase and rehab costs for your project, with up to 75% of the estimated after-repair value (ARV) and no down payment required.
RFG in Action
Angelo tackled a challenging three-story duplex rehab, taking it down to the studs and replacing all the electric, plumbing, and flooring. He installed new drywall, two new kitchens, and three new bathrooms. The duplex consists of a 2-bed/1-bath apartment on the first floor and a 3-bed/2-bath apartment on the second and third floors. After completing the rehab, Angelo rented out both apartments. Six months later, he sold the property for a profit and reinvested the funds into his next flip. Great job, Angelo!
