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What You Need to Know About Rehab Loans and Your Options

By | El Paso, hard money loans, Home Buying, home renovation | No Comments

Flipping a home has several aspects to it. One is the financial side: getting the money, ensuring you have the funds ready to go for what you need. Another aspect is the hands-on aspect, which refers to the elbow grease needed to get a place up and running and turn-key condition. Here at Entrust Capital Funding, we help clients take care of the financial side so that they are at ease about having the financial backing they need to fulfill their vision. There are different ways to go about flipping homes, and one way to get there is through rehab loans. 

How Did The Concept of a Rehab Loan Originate 

Generally speaking, a rehab loan is a term used for a specific type of loan. It refers to when an investor seeks to buy real estate property in subpar conditions to renovate it and sell it for a profit. The idea is to renovate the property quickly and turn around and re-sell it for a better price in order to reap the rewards. A traditional mortgage loan would take too long and slow down the process needed to make flipping profitable and efficient. This is where a rehab loan can save the day. 

The term rehab loan is used in the United States and Canada. It was closely related to the hard money industry, which began in the 1950s. The term ‘hard money,’ however, originated as early as The Great Depression. When the crash hit, people became distrustful of banking institutions, and many people took their hard-earned money out of the banks, out of circulation, and put it in between their mattresses.

Without the money in circulation, lenders had to find other ways to get money to make loans. This led real estate to be used as collateral, and without much choice to get quick cash, many people took out loans against their homes. In the 1950s, changes were made to the credit industry that changed the way that people applied for these loans. The industry had its ebbs and flows, and since the 1990s, private lenders became a more popular choice for real estate financing. Investors realized that hard money loans offered benefits and perks that were not the same with traditional loans. 

What Are the Different Types of Rehab Loans? 

Rehab loans depend on where the funds are coming from. There are different types of rehab loans. The three main types include: 

  • Investment Property Line of Credit: This refers to tapping into your existing equity of a current home in order to finance the renovation work for a new property. This is similar to a home equity line of credit loan. 
  • FHA (Federal Housing Administration) 203 (k) loans: This loan is considered a rehab loan because it deals with a property that needs to be renovated, but it is for your personal use. It’s a way to purchase or refinance a home that is in need of major renovations and tag on the repair costs to your mortgage. The FHA 203 (k) loans offer a longer time to repay and lower interest rates. In order to get this loan, buyers must go through certain FHA – approved lenders. 
  • Hard Money Rehab Loan: These loans are great for real estate investors and buyers that have trouble finding financial assistance. Your income and credit scores are not a factor in qualifying for these loans. It’s all about the kind of collateral you can put on the table. For many real estate investors, the property in question is the very collateral they offer in exchange for the loan. 

A Closer Look at Hard Money Rehab Loans 

Hard money rehab loans are the go-to loan for many house flippers and those getting started in the real estate investment business. They are the get-in-get-out loan of choice. Flipping a property is meant to be a quick affair without the dragging processes of complex underwriting, credit investigations, and so forth. Many new investors do not have the capital at hand or the funds to see their first project through. This is part of the buyer’s initial risk, as they commit to the sale and the renovations. 

What Do Hard Money Lenders Look For? 

A hard money lender like Entrust Capital Funding will focus on the property in question. More specifically, we look at the real estate’s after repair value (ARP) when considering the final amount of your loan. Since the property is the main collateral, these assessments are made to cover the risk the investor is taking by lending the money. Depending on the property, a hard money lender can lend up to 75% of the total property value. 

Get Your House Flipping Started with Reliable Hard Money Rehab Loans 

Here at Entrust Capital Funding, there are no set specific requirements to qualify for a hard money rehab loan. We don’t look at your credit or evaluate debt history. Our investors are interested in investing in worthy real estate ventures. 

If you’re looking for fast money to make a real estate investment. Come talk to us. Call the professional team at Entrust Capital Funding and tell us more!

Real Estate Investing Forecast of 2021 and How To Move Forward 

By | El Paso, real estate investment loans | No Comments

Single family house on pile of money. Concept of real estate.The low mortgage interest rates of 2020 continue to be all the rage. The interest rates in the second half of the year went as low as 2.7% and this led many prospective buyers, to make the leap and start searching for their home. The economy also took many low blows, as small businesses across the country have had to close their doors. 

For small business owners and entrepreneurs, it’s been a difficult year to navigate, but it’s not all lost. Here at Entrust Capital Funding, we write a lot about the entrepreneurial spirit and how it relates to real estate investors. So while there are many uncertainties and unknowns, the year 2020 taught us that that is always the case. 

What We Learned from 2020’s Pandemic

The pandemic changed the business landscape, but just as some businesses flourished, others had to adapt, reassess, and maybe even start over. For people looking to find lucrative opportunities, this presented a ripe time for launching a new venture. 

Forbes magazine points out that while the pandemic put a lot of businesses in jeopardy, it is nothing new to see new types of businesses or a resurgence of old models when there’s a sea change. The argument points to several major enterprises that began during difficult economic times. 

During the recession of 1957-1958, the first Hyatt Hotel opened and rose to great successes. Microsoft was founded during the oil embargo of 73-75. The years following the 2008 housing bubble saw the emergence of popular startups like Uber and Airbnb. Perhaps these society-altering events force people to realign their thinking and change consumer needs and demands. As we slowly see our society return to ‘normal,’ there are likely to be permanent changes. 

The Real Estate Market for 2021 

As anyone in real estate will confirm, the housing market has been smoking this year. In the El Paso area, reports of hungry homebuyers running out of houses to buy made the rounds in the real estate community. A KFOX report as late as Sept of 2020—when El Paso was considered a hot spot for the pandemic—people continued to buy homes. The data pointed to more than 30 homes sold per day during August in El Paso county. The Fall made for the biggest home growth that many in the business have seen for many years. 

The main reason is low mortgage rates but also people who found themselves stuck at home or paying exorbitant rents, deciding that investing toward their own place was probably the way to go. Young Millennial buyers seemed to suddenly jump onto the market, as many found themselves to be in an economic position to do so. 

According to another report, Millennial and Gen-Z buyers are expected to play a growing role in home purchases and single-family housing starts are expected to grow another 9 percent in 2021. As the younger generation settles down and gets high-paying jobs, they become a good home-buying prospect. 

What Does This Mean for Real Estate Investment?

As far as real estate investment goes, it continues to show promise for the upcoming year. This is not only because the real estate market has shown to continue strong even through the harsher pandemic numbers, but because new home construction has slowed and this means that many older homes on the market that need remodeling are being scooped up as investment opportunities. Residential construction continues to face limiting factors. These include higher material costs (such as lumber) and longer delivery times for materials, skill shortages, and more. 

If you’re a real estate investor that is looking to flip homes and sell them in the greater El Paso area, this may be your time to jump on the opportunity. With many new home constructions lagging, people that are putting their homes on the market are being incentivized by the rising home prices. Many homes, however, will require major and minor renovations that can make quite the difference on a final sale price. 

There are other real estate investing options as well. According to U.S News, the most popular places to invest as the year of 2021 kicks off are:

  • Residential properties: The new work-from-home-model is changing the way people live and operate at home. They may find themselves looking for new spaces that accommodate the modern ‘online’ lifestyle. 
  • Industrial properties: Places usually used for storage and warehousing might have a high potential for many eCommerce businesses sprouting up. 
  • Commercial/retail properties: As many retail stores move online, their spaces will soon become available and can be converted or renovated for new purposes. 
  • Vacant land: Investing in vacant land is a little different but can be a great way to go into an investment for someone that understands zoning laws, construction, and more. 

As the pandemic forces many businesses to close their doors, many commercial spaces that can be transformed will be made available. As changing cultural trends continue thanks to the changing job landscape, the possibilities to turn real estate into a new and lucrative investment continue to remain positive. 

Looking To Dive Into Real Estate Investing in 2021! We Got the Right Solution. 

Before you can invest in real estate, you need to have a plan and some idea of how to obtain the funds necessary. Sometimes it can be harder than it sounds, but with Entrust Capital Funding, we can provide you with quick answers about your qualification to obtain a loan from us. We operate in El Paso and are helping many entrepreneurs start their enterprises with real estate and housing investment. Call us today and find out more. 

Real estate agent signing new home owners

How to Break Through In Real Estate Investing

By | El Paso, real estate investment loans | No Comments

There is no shortage of advertisements, reality television shows, and YouTube stars that go around talking about the fortune awaiting your next real estate flip. They make it sound easy and straightforward. It can be! Flipping homes has become a popular venture and one that people of all walks of life have taken a stab at. The initial hurdle for average investors seems to be getting over that stage fright or ‘beginner nerves.’ It’s natural to be nervous about jumping into a new financial adventure. But you don’t have to do it alone! There are plenty of resources and advice out there that can help you proceed with caution and an arsenal of knowledge. So let’s take a look at some good ways to break into the real estate business. 

Here’s How to Become a Solopreneur 

Previously, we wrote about the spirit of entrepreneurship in America and how it drove innovation and economic expansion. Today, there is a new hot button word that takes from this incredible spirit of adventure and transfers it to the work that you can do as an individual. Hence, the solopreneur. While many do house flips as a tag team activity, it is also something that you can do on your own. In many ways, define your own schedule, rules, and goals. It’s why sometimes house flips are known to be one of the favorite activities of solopreneurs. 

House flipping can be for everyone: from homemakers, young professionals, and even movie stars and celebrities. Several notable names have made quite the fortune with real estate investing. Some of these people include Arnold Schwarzenegger and Vanilla Ice. As if Mr. Schwarzenegger hadn’t done enough in his life, as a world-famous body-builder, iconic actor, and governor, many people will be surprised to know that young Schwarzenegger got his start in real estate investing. His early investments and the revenue he acquired from them allowed him to pursue his billion other interests. He would scrape together winnings of body-building contests and other gigs to purchase multi-family real estate. He would then, in turn, convert into revenue streams. 

Using Fear as a Powerful Motivator 

As humans, fear is a defense mechanism to protect us from harm and dangerous situations. Biologically speaking, this can be a very useful tool. However, we all know that fear can also hinder our ability to take just enough risk to do extraordinary things. Just ask anybody who has ever done anything worthwhile, and they will tell you that they suffered from nerves and quite possibly some serious doubt at some point in the process. It’s ok. Television makes house flipping seem very easy, but when was the last time something was as easy as seen on tv? Real estate investing is there for the taking, but it does require some due diligence and smart decision-making. Here’s how to get started. 

Tip #1: Learn what you can and continue learning. 

Like any other industry, the real estate market and the industry are always changing. It is very closely connected with the market and the state of the economy, so looking out for signs and having some cursory understanding of the many factors that affect investing will only serve you well. Don’t act blindly. Sit down and organize your thoughts and figure out where you might lack knowledge. 

Tip #2 Build a Network of Support

Many people try to break through into real estate, and many of those people remain eager to share their knowledge and experiences. There are people out there that dedicate their whole life to real estate and studying the markets. Many communities have open financial advising meetings or support groups for those trying to get into real estate. Get ideas. Learn. And find a network of people that are there to help you with a wise word when you need it. 

Tip #3 Partner Up With A Suitable Real Estate Agent & Contractors 

Flipping a home is one thing, but you are going to sell the property at some point. Part of building a professional network is looking around for trustworthy real estate agents that specialize in flips and know the market. Real estate agents are on the front lines, and they are filled with useful tips and advice. Working with someone you trust and that you don’t have to micromanage when it comes time to sell is one way to ensure a successful and quick sale of your property. Knowing and trusting contractors or companies that will be part of your ‘repair team’ is also huge. Working with people you can trust to do the job right will save you the tendency to need to micromanage every single repair. 

Tip #4 Gain Knowledge of Interior Design and Home Repair 

One mistake that people make when flipping homes comes in the form of the repairs themselves. If you’re buying a flip property, it is understood that you will be making repairs on the home yourself. You’ll likely want to oversee some of these repairs, and some you will trust contractors in your area. So, just because you are remodeling and making repairs to the home doesn’t mean you are doing it the right way. More specifically, it doesn’t mean that you are pouring the most resources into the most important kinds and types of repairs. 

You also want to think about having a safety net. Don’t go all in the first time and play it smart. Keep your eyes open, and you’ll be just fine. 

One of the best things you can do is go with trusted capital. Here at Entrust Capital Funding, we support the entrepreneurial (and solopreneur) spirit. It’s why we provide easy access to loans and help people make a splash in an industry that is open to anyone willing to work for it! 

A History of the Flip: House Flipping and Real Estate Investment 

By | Uncategorized | No Comments

Workers are installing plasterboard (drywall) for gypsum walls in apartment is under construction, remodeling, renovation, extension, restoration and reconstructionThe term house flipping has become popularized thanks to television shows like Flip This House, Flip Las Vegas, Zombie House Flipping, and countless others. Nobody would have thought that a show about fixing houses would go so mainstream and grow its own bit of cult following. You can even buy merch and sport the very clever “Do you even flip bro?” Who wouldn’t want that?!  The very idea of seeing something (an old house) for what it could be is so quintessentially American in nature. That is, our culture has always encouraged reinvention and innovation and the real estate business is no different. It’s why hundreds of people across the country—from stay-at-home moms to real estate agents to handymen— set out every year to buy and flip properties. Many people see it as much more than just lucrative business; it’s an opportunity to take something that’s falling apart and make it beautiful again. There is great satisfaction in that. Here at Entrust Capital Funding, we facilitate this process for people as they embark on the exciting journey of real estate investment. Sometimes the hardest part is getting started, so we help secure the funds and you take it from there. 

Where did the idea of  ‘the flip’ get started?

Let us take this all the way back. We mean waaaay back.  It’s no secret that Americans hold property in very high regard. Property rights are well enshrined in our laws and thinking.  The founding fathers drew from the philosophy of John Locke, Enlightenment thinker and philosopher, who wrote famously about the role of government and the way a free society might function. The core principle of ‘life, liberty, and the pursuit of happiness’ was a reference to Locke’s very revolutionary idea (at the time) of natural rights that included life, liberty, and property. It was changed to ‘happiness’ by Mr. Thomas Jefferson himself who deemed it a much more appealing and inspiring phrase given the document in which he was writing it. After all, the document needed to rally support behind the revolutionary cause. 

That, of course, serves as the basis for much of our society. The American Dream is very much tied to owning one’s own property and having the picture perfect home with the white picket fence. Today, many versions of this ‘perfect home’ exist, and those that understand the value of real estate investing know that it is an instinct ingrained in Americans to want to own their home, their property, where their family can grow and thrive. A home, after all, is the place where you feel safe and protected and free. 

If there is one thing that television shows like those mentioned above have done, it makes the concept of a house flipper mainstream. Most people thirty years ago might have known what you were talking about when you said the term. Today, it’s a pretty well-known tactic to get into a lucrative business. House flipping as we know it in these mainstream shows really began around the 1980s. The early 80s had an economic recession hit and people with reliable incomes and savings were able to buy the foreclosed homes, fix them, and sell them for a profit. Savvy people understood that markets are always fluctuating and that when a recession happens, there is likely to be an improvement. 

The Outward Expansion and Mass Production of Homes 

Suburbia, which began in the 50s and 60s as millions of American servicemen returned to build families and made use of the GI Bill, meant that rows and rows of houses in the outskirts of cities began the outward expansion that we know today. The surge of home-building continued onto the 70s, 80s, and 90s as suburbs extended outward and larger metropolitan areas grew in population, density, and infrastructure. This pushed the outward expansion that led to the building of entire neighborhoods and communities outside America’s major cities.

Blast from the Past – The Appeal of Retro Homes and Renovations

Whether it’s fashion or films, the idea of returning to the past has always appealed to people. The same applies to homes. Renovating and sprucing up an old classic home from the early 20th century is part of what kickstarted the movement of flipping houses. Retro home features like classic chimneys, wallpapers, clawfoot tubs, and more are always coming back and have homeowners seeking blasts from the past. With homeowners eager and happy to purchase older homes that have been renovated, house flippers discovered that turning old abandoned homes into modernized havens with stylish additions and improvements was very much a burgeoning market. 

And so the trend of the house flipper continues because it is a never-ending market. As new generations of Americans come up, new-somewhat-modified versions of the American Dream continue and people search for that perfect home. For the real estate investor, this means that the work they put into the house will be worth it. Many real estate investors, of course, fall in love with the process of turning something that is dilapidated, forgotten, perhaps a little abandoned, into a breath-taking home that inspires hopes and dreams. For many, this is what it’s all about. 

If you have a passion for giving people what they are looking for, the world of real estate investment might be for you. Here at Entrust Capital Funding, we help people find those opportunities and turn them into profits. Give us a call and learn about how you can dive into the world of house flipping. 

The Entrepreneurial Spirit and How to Embrace It

By | El Paso, hard money loans | No Comments

African american entrepreneur business owner ceo portrait at the creative design officeIf there is one thing that separates America from most other countries, is the entrepreneurial spirit and tradition that runs through the backbone of this country. Part of what fuels the American spirit is the question of new frontiers; characterized from our early history, where miles and miles of unexplored land lay westward, the country developed a culture of seeking adventure and new limits. Without that, we might not be one of the most innovative, productive, and culturally rich countries in the world. And while most people will not be settling on unexplored land, we all have the opportunity to reach new frontiers in our own lives. Here at Entrust Capital Funding, we believe in this spirit of adventure and risk mitigation. It’s why we offer great funding opportunities for people that have a dream and a drive to grow their wealth in a different way. 

So how does one engage in the journey of entrepreneurship?

Well, there is no one path, no one way to get to where you want to go. If you look at some of the most innovative minds in America in the past few decades: Elon Musk, Jeff Besos, Bill Gates, etc, they each lead different journeys that brought them to where they are, but we can look at some similar characteristics or tips that might help you take a new risk and grow you wealth.

Tip #1: Take on the challenge. Venturing into new territory will always be scary and will always be a challenge. Embrace the difficulties as part of the journey that will take you to your golden vision. 

Tip #2: Care about your work. A million-dollar idea that you don’t much care about will not bode very well. That’s because it’s going to get tough and if it gets tough and you don’t care about the work you do, it’s far more likely that you’ll give in to the impulse to walk away. 

Tip #3: Acknowledge the risk. Jeff Bezos once said that he knew that he would not regret failure but that he would regret not trying. The outcome of your efforts will only be known until you make that effort and go all out. 

Tip #4: Have a vision. Regardless of the venture, you’re looking to embark on, it’s better to always have a clear vision of what you want it to be. Keeping that vision at the forefront will help you move forward, overcome obstacles, and find creative ways to move towards it. 

Tip #5: Surround yourself with good people. Life is too short to surround yourself with people that drag you down or pull you under. If a person doesn’t inspire you, move you, or challenge you in some way, you might get better friends and business partners. 

Words of Wisdom from Successful People

Sure it sounds easy to tell someone to ‘take a risk.’ In the real world, what does that really mean? We mitigate risk on a day-to-day basis. And yet, that doesn’t mean that we blindly throw everything we got onto one basket and look away. Taking risks requires some planning, analysis, but also some trust. There does come a point where you have to let go and simply accept that there is risk involved. 

Let’s take a look at some advice from notable people:

Mark Cuban is a well-known entrepreneur and investor. He owns NBA teams, Landmark Theaters, and Magnolia Pictures. He asks two simple but important questions: “(1) Is it something you love to do? (2) Is this something you’re good at. He encourages people to choose something they love to do and care about. The first step, he says, is always the most difficult. And this is true for most everything in life. The first time you do it, it seems insurmountable. After that, you know the ropes. 

Tony Robbins is a well-known speaker, best-selling author, and beloved personality in the world of self-help-inspirational-type activities. He warns people against believing that having a solid business plan is the end all be all. He claims business is 80% psychology and 20% mechanics. He advises people to think honestly about who they are, what you want to accomplish, and the mindset you need to have to get there and claims that few people are ‘natural’ risk-takes. It’s why we have to work our way towards that. 

Tim Ferris is a well-known and best-selling author that wrote about the “Four Hour Work Week.” Ferris claims that the best advice he ever received was that you are always the average of the 5 people you associate with. In other words, choose your friends wisely and make sure that they play a productive role in your life. 

Thinking About Real Estate Investment? 

Real estate investment can be a great way to learn a new industry and grow your wealth. Here at Entrust Capital Funding, we believe in the spirit of entrepreneurship and encourage people to get out there and fight for the lives that they want to live. It’s why our capital funding is quick and simple to get. If you want to invest in real estate, there may be an opportunity waiting for you. Call us to find out more about what we do. 

Sold Home For Sale Real Estate Sign and House.

Real Estate Investment & Coronavirus: Factors To Consider

By | El Paso, real estate investment loans | No Comments

The global COVID19 pandemic is causing unprecedented levels of medical and economic damage, choking hospitals of resources and killing small businesses like barbershops, restaurants, and nail salons. Global shipping has taken a huge hit, and governments are scrambling to guard against an economic collapse unlike anything the world has seen.

The far-reaching effects of the coronavirus have left no industry untouched, including the real estate market. Close eyes are on the real estate market, and early reports are dire. In this blog, we’ll analyze the current effects and predictions for the real estate market.

How COVID19 Is Shaking Up The Market

The coronavirus is quickly overwhelming citizens and governments alike, while the negative ramifications continue to build. The economy was already slowing down, so the coronavirus has acted to accelerate and exacerbate the already-coming recession. Unlike the previous recession, though, the housing market may not take as big a hit.

The head off the effects of the coronavirus, state and federal governments are helping by providing relief and assistance for those with mortgages. Since many people rent, especially young adults, some help is likely in the works for them.

For investors, the most important numbers will be interest rates, which will continue to drop as this pandemic progresses. Lower interest rates mean more investment in property and development, given how fruitful it will be as opposed to bonds or CDs.

At the time of writing, normal housing behavior has been maintained more or less. Recent surveys have shown that 80 to 90 percent of home buyers and sellers report no change in interest or sales, despite the crisis. The National Association of Homebuilders has sent President Trump a letter asking for federal support for the housing sector nonetheless, likely worried about the future implications of the pandemic.

For now, the housing market is relatively stable. Future forecasts, however, are not as optimistic.

The Future Of The Housing Market

The housing market, like the rest of the economy, has its underpinnings in debt. Lots and lots of debt. It’s estimated that there’s enough debt for each American man, woman, and child to have $12,000 each in debt. The pandemic presents a huge opportunity for the housing market to collapse ordinary Americans, but it all hinges on the way the government responds.

The Trump administration has taken steps to head off the crisis by putting a freeze on mortgages backed by federal bodies like Freddie Mac, Fannie Mae, or the FHA. While this will put mortgage servicers in a bad spot, it should ultimately save the cascade of foreclosures that would have happened otherwise.

It’s also important to keep in mind that the housing market as a whole was already pretty tight. Housing prices have been skyrocketing for some time now, and the available homes for sale have also decreased across most major cities.

Besides the 2008 housing crash (which ultimately caused the stock market crash), the housing market is actually quite resilient during a recession. In fact, many people are looking to shift their investments into real estate because it seems like a safer option than other types of investments.

How Should I React To The Coronavirus?

Unfortunately, it’s hard to know how to respond since we have no clue how long or severe the coronavirus recession will end up being. It’s hard to make decisions when the future is so uncertain. Many investors, as stated above, are taking advantage of rock-bottom rates and are investing in droves.

If you recently bought a home, refinancing may be a great idea, though many banks are pausing their refinancing programs due to the coronavirus. Some experts warn of a liquidity crunch in the market, due to the lack of capital from lenders. Getting a mortgage and a new home will be difficult, thus making the housing market grind to a crawl.

The best advice at the moment would likely to practice very cautious and well-calculated moves. As the stock market is showing, many people are panic selling their stocks and panic buying toilet paper. Those probably aren’t the wisest moves, especially since the markets are going to be receiving some major help from the government.

Investing in real estate may represent a much more stable choice, but the best tool you can have in times like these is knowledge. Stay up to date with the latest news and government actions will best inform your investing decisions.

Choose Entrust Capital Funding As Your Real Estate Partner!

Still looking to invest in real estate? Let our team help out with industry-best loan services! Contact our office to get started on your real estate investment!

8 Ways to Invest in Real Estate Without Actually Buying

By | El Paso, real estate investment loans | No Comments

Home renovations being completed to sell for a larger profitThere is a risk of investing in anything. You always need to make sure that the market that you are investing in is profitable and will continue to be profitable. Investing is always a risky business and some markets are riskier than others. Investing in the real estate and housing markets can be a risk and many people are intrigued by it but not willing to just dive all the way into it. There are ways to invest in real estate that can help you learn all about the market without as much risk as actually buying property. Here are 7 ways to invest in real estate without actually buying property and posing less of a risk to your wallet. 

 

Become a Real Estate Agent or Start a Brokerage

Being a real estate agent and a broker requires some education and licenses that need to be obtained. Those licenses and levels of education sometimes depend on your location and area of expertise. This is a great way to learn about the market and work your way up. Successful agents earn a decent amount of commission and brokerages can earn a decent amount of commission from their agents that work under them. If you are a successful agent, building a brokerage might be a very profitable option for you to consider.  However, starting a brokerage can be very expensive. It does take money to make money, so consider how long it can take to grow and see a return in profits. 

 

Wholesaling Houses

This is similar to owning and flipping a house, except you don’t have to own the property to do it and you don’t front the cost of maintenance. You essentially contract someone who is looking to sell their home and you then take that contract and sell it to a buyer for a profit. The trouble with this way of investing is that it can be very difficult to find a home that has been undervalued in the market that a person is willing to renovate and sell. Lots of factors need to line up in order for this kind of investment to be successful. 

 

Real Estate Mutual Funds

Mutual funds are pulled together and overseen by an investment manager. You can choose a fund that is growth-oriented or income-oriented. These are designed to minimize the risk of investing, but like anything in real estate, there is still a slight risk. If a real estate related risk affects one of the investments, it is likely to infect the other investments as well. This is where you would really want to evaluate the market and see if the risks are too big to take. 

 

Invest in Home Construction Companies

By this we mean investing in the stocks of home building companies. Be sure to look closely at stock numbers and study the home building market. Perhaps, start small and work your way into investing more money if you see that you are turning up a profit. Invest if you truly believe that the home building market is going to boom and remain steady. 

 

Real Estate Partnerships

Investing can be really expensive to do on your own. This is where it can be beneficial in having an investing partner. Each person had their own responsibilities that they take care of. This is a great way to purchase property at a lower price. Depending on the agreement, you can choose what is most enjoyable and easiest for you to take care of, and leave the rest to your partner. 

 

Invest in Real Estate Service Companies

This is a great way for beginners to dip their toes into the housing market and build their portfolio until they can really invest. This involves minimal work and is a great way to gain experience and learn. 

 

Become a Real Estate Appraiser

This is another great way for you to learn about the housing market and learn what times are the best to invest in. As a real estate appraiser, you can specialize in commercial or residential properties. You will determine the values of properties and their surrounding areas while making a decent salary and learn about valuable housing markets. 

 

Obviously, any kind of investing can be tricky, but the housing market is a particularly tricky market, especially in this economy. Entrust Capital Funding id here to help. Contact us to learn more about real estate investing.

Preparing Future Homeowners: Requirements for Buying a Home in Texas

By | hard money loans, Home Buying | No Comments

Still of a conventional home with a Texas and U.S. flag hanging over the front porch and walkway.

If you’re interested in buying a home in the state of Texas, you’ve made an excellent choice. Real estate investors and homebuyers are in for a treat when deciding to reside in Texas, especially in major cities such as Dallas, Houston, and San Antonio. In order to diminish your share of challenges in the home buying process, it’s important to understand specific laws and issues. If you’re wondering what exactly you need to purchase property in the state of Texas, you’ve come to the right place! We touch on the requirements and steps it takes to successfully make a Texas home yours.

Assessing Your Finances and Do Your Research

One of the most important primary steps for looking and purchasing a home in Texas is to do some research. This research doesn’t have to be arduous, but it should be just enough so that you can gain a general understanding of how home buying works in Texas. Some of the key points you will want to look at should consist of credit score, average down payment, home programs, and mortgage payments. By reading up on these requirements, buying a home in Texas can be much more feasible for investors.

Finding a Real Estate Agent

Although the state of Texas is one of the very few that does not make it mandatory for an investor to hire a real estate agent but utilizing their help could make a world of a difference. By hiring a real estate agent to guide you through the home buying process, their presence minimizes the potential for errors in other requirements to buy a house in Texas. If you want to ensure that you are choosing a qualified agent for your home buying journal, it could be helpful to seek the wisdom of referrals and more.

Getting Pre-Approved for a Mortgage

The next step regards getting pre-approved for a mortgage, which is essential before making an offer after searching for investment properties for sale. If you are a first-time home buyer in Texas, it is crucial that you learn about the lender’s requirements.

Initiating the Property Search

You can start hunting down properties by scouring your desired area or by searching for local advertisements. Even better, you could search for investment properties for sale online, as 90% of real estate investors do.

Make a Written Offer

Once you’ve set your mind on a specific property, you can then move onto the next step of buying a house in Texas: making an offer. In Texas, offers to purchase must be written. This is one of the requirements to buy a house in Texas that a real estate agent can provide a significant amount of help for investors. The agent can review the contingencies and terms of the offer and any other associated legal aspects.

Have the Property Inspected and Appraised

The next step in meeting the requirements to buy a house in Texas includes the expertise of two real estate professionals: inspectors and appraisers. Whenever you are purchasing a home in Texas, these two professionals must be prevalent throughout the process. An inspector is available to assess the standards of the property, while an appraiser determines the property’s value.

Determine Escrow and Finalize the Deal

The following steps of buying residential property in Texas near the ends of the home buying process. A legal advisor, who can simultaneously be the agent, helps to determine escrow of the deal. Once escrow is determined and agreed upon, the closing of the deal can begin.

While some detailed specifics can be different based on your real estate agency and property, these are the general requirements and steps to buying a house in Texas. Above the requirements, it is essential that you take your time with the process, especially if this is your first time purchasing property. Never agree to anything in the deal until you come to a full understanding and level of comfort.

Entrust Capital Lending: Here to Accompany You Throughout the Process!

The Entrust Capital Lending group is just as passionate about working with investors and homebuyers as we are about providing loans for Texas homes. If you need a loan in a timeframe that is convenient and fast for you, we are here to help! Contact us today to learn more about how we can get you started.

Harnessing Powerful Concepts Into the Art of House Flipping

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Male hand flipping abstract paper with house sketch, revealing new interior design. Mortgage and moving concept. 3D Rendering

There has been no shortage of real estate gurus over the years. Dozens of acclaimed speakers claiming to have the magic formula to real estate investing have likely passed through your town doing sold out lectures, conventions, and expos. Most professionals will tell you, however, that there is not just one formula, particularly for a business as dynamic as real estate. Still, if you are venturing into real estate investing and house flipping, you’re probably looking for some general guidance and tangible useful advice.  Understanding certain basic principles of taking action might be a great way to get over the fear and crack open the initial stages of real estate investing. 

One of today’s leading voices in the self-help motivational realm—although not exactly a traditional motivational speaker himself—is the tall, articulate, and charismatic Tony Robbins. And while Robbins does not limit himself to only one industry, his advice is more focused on mastering human emotion and action. And some of the key principles can be applied directly to real estate. Let’s take a look at some helpful tips:

  1. Decision is the ultimate power. This is probably one of Robbins’ central ideas. The thought here is that decision is what drives destinies and without a decision you can be stuck in no man’s land for some time. So if you’re thinking about real estate investing. Don’t think about it too long. Either go for it or don’t. 
  2. Utilize the Incredible Power of Focus. And just like the above, the concept applies to everyday life and other personal decisions, as well as real estate. You can spend years studying the literature of how to best flip a house, but if you focus on action and doing, you’ll likely learn faster and get where you want to go. When concentrating on one thing the human mind can yield and incredible force. 
  3. Always move towards bigger things. Don’t get caught up in the details of life. Move towards the big goals. This way you are always moving towards the big things that you aim for. 
  4. Take Action. This is a big leading principle. Nothing happens without action and dabbling in indecision can not only make you lose a lot of time but a lot of money as well. If you haven’t taken action, you haven’t truly decided. This is key. In order to move towards these big goals you have to take steps to get there. Reading about real estate investing every day, printing articles, and never really taking action is not exactly a path to success. Reading is good, research is good, but action is better. 
  5. Look for a mentor. Finding someone that understands real estate and can give you some advice on your first flip, how to work your first investment, finding your price ranges, etc, can be a wealth of knowledge in one conversation. 

And once you’re in, keep moving forward. There might be mistakes, there might be setbacks, but dedication gets you there. 

Focus, Take Action, and Invest!

Here at Entrust Capital Funding, we are supporters of investors and want to help them succeed in their endeavors. It’s why we make the process easy and pain free. We know the opportunities that lie in the world of real estate investment and if you have been thinking about taking the leap, why not do it now! Remember, if you focus and take action, what you can achieve is truly remarkable. We are here to help you get the funds you need to get started. Call us today. 

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Benefits of House Flipping as a Profession

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House flipping, as a profession, can be pretty rewarding and demanding. Many people in the industry simply love real estate, or were tired of living in a 9 to 5 corporate environment. It has become more popular than ever before, with shows and social media accounts chronicling the lives of house flippers reaching millions of people a day. However, some people still have too little information on the industry and remain skeptical. If you are on the fence, check out just some of the benefits of house flipping below.

  1. Take Control of Your Time – When you flip houses for a living, you are your own boss. You don’t have to have lunch right at 12 or have that report done by Monday; you decide how much you want to do, when you want to do it, and how. 
  2. Financial Potential – As you may already know, there is a lot of money to be made in real estate. After all, for most people, the majority of their net worth is tied into their home. This can be daunting for some people since they have never had to deal with such large amounts of money before. But for motivated individuals, the potential for money-making in the house flipping business is as big as their desire and drive.
  3. Networking – Flipping houses requires talking to people, and we mean a lot. Marketing, getting loans, getting info on neighborhoods, and all the other aspects of house flipping require communication. If you love talking to people or want to branch out, this is a great industry to be in.

Pairing Your Dream With The Right Lender

House flipping can be made easy and profitable with the right lender. Here at Entrust Capital Funding, we pride ourselves on being able to offer the best loans for home flippers of all types. Contact us today to see how we can get your dream off the ground.