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Benefits of House Flipping as a Profession

By | El Paso, hard money loans | No Comments

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. 

House flipper perfecting the art of flipping houses by literally flipping houses around

Terms You Should Know in the House Flipping Industry

By | el paso texas hard money lenders, hard money loans | No Comments

Real estate is a great industry to work in; it’s stable, and allows you to meet new people, take risks, and expand and grow to an almost endless degree. If you want to get started in this industry, you may want to learn some of the most common terms so you won’t get lost or confused doing your own research. 

House Flipping Terms

The house flipping industry has a lot of terms that are unique to the industry and are brought up a ton from experienced home flippers. Here as some of the most common that you’ll see and hear regularly:

  • Reno project – This one is pretty simple—this refers to a home that will need a renovation before it is sold on the market. 
  • Wholesaler – A wholesaler is a person who buys homes as-is and will sell them to another flipper. They don’t waste time renovating or selling a home to someone who will actually live in it. 
  • Bene – Bene is short for beneficiary, and that is typically a bank or lender that has ownership of a foreclosed property. 
  • Distressed property – A distressed property is one that is late on payments, and is in danger of foreclosure. 
  • NOD – NOD stands for notice of default, and is the point where a house is due to be foreclosed on. You can often get a list of these properties in advance, but it’ll cost you. 
  • Dollhouse and Haircut – Dollhouse and haircut just mean that homes are in pretty good shape, and need minimal renovation to be ready for the market.
  • LTV – LTV is just the Loan-to-Value ratio, meaning the difference in the loan and appraised value of the home. 
  • ARV – ARV stands for After Repair Value, and it’s just the value you of your home after renovations. This is where your profit comes in, so you need to have an idea of this number before you renovate.
  • Hard-money lender – Oh wait, that’s us! A hard-money lender is a private lender, meaning the money comes from private investors, and not from a bank. That means that you can get your money fast, and go on flipping or renovating your house much faster than a traditional lender. 

Contact Entrust Capital Funding, Today!

When you’re in need of a hard loan that can get you the house or renovation project with the lowest interest rates in town, call Entrust Capital. Let us finance your real estate dreams today!

How Hard Money Loans Improve Communities and Help Build Wealth

By | El Paso, Hard Money Lending, hard money loans | No Comments

When you say the words ‘hard money’ to someone, there is a high probability that it might prompt the kind of glazing of the eyes common with financial speak. So many people are unnecessarily intimidated by concepts of real estate investment and buying, but it might be worth to let everybody know that hard money loans and investing in real estate could be for everybody and not just professional house flippers we see on television. Thousands of Americans have grown their wealth through hard money loans and finding opportunities in the thriving real estate market. 

 


Where does the Term Come From?

 

The first question you might have is, “Why on earth is it called “hard” money?” When one understands the concept of these types of loans, the name might make a lot more sense. The term refers to the reliability of the loan in the sense that it is not from a bank, but from a fund of investors who agree to use their money for these short-term loans. 

 

A hard money loan is secured by the real estate project itself. So, if you find a home that you want to purchase and are willing to renovate and then flip, these loans are designed to be short-term and to use that very piece of property as collateral. 

 

Where Does the Bad Reputation Come From?

 

Let’s face it. Hard money also carries some stigma and bad reputation from a few bad apples that took the concept and took advantage of it. These bad apples provided very risky loans to borrowers with the intention of foreclosing on the property. So, unfortunately, a lot of hard money lenders today carry that bad reputation that even people outside of the real estate investing world seem to have. 

 

What Role Does It Play In My Community?

 

You might be surprised that many homes in your neighborhood were purchased with hard money. If you live in a neighborhood where there are older homes that have some renovation happening, you can rest assured that many of those renovations were funded by hard money. These types of loans help the cash flow and help people with bad credit invest in and purchase their homes. Hard money is composed of a group of investors from a community, interested in improving that community by allowing people to renovate and remodel homes, thereby improving the neighborhood, the community, and the value of the homes. 

 

The Security of these Loans

 

Just like taking out any kind of loan—whether it is a student loan or other private loan— there is some responsibility involved. For aspiring real estate investors, there is a lot of resources out there that help them learn about how to maximize the opportunities provided by hard money. Here at Entrust Capital, we help aspiring investors navigate the complicated and sometimes daunting process of borrowing money for a house flip. 

 

Choose Lenders You Trust

 

Precisely because of this bad stigma, we understand that some people might be apprehensive to go with hard money lenders. There are, however, a lot of benefits to getting these loans, as opposed to regular bank loans. They are available faster, they have lower interest rates, and they are reliable. After all, for the group of investors funding your loan, they know that there is some security with the real estate, so they are not so concerned with your credit. If you’re looking for a quick short-term and reliable loan, call Entrust Capital Funding and we’ll give you more information. 

 

hard money loans

A Review of Hard Money: Why These Loans Can Help You Kickstart Your Wealth

By | el paso texas hard money lenders | No Comments

hard money loans

Every loan—whether from a friend or from a bank— is contingent upon a certain amount of trust. The trust is that you will pay it back. When it comes to a bank, of course, there is usually some collateral or high interest involved so that there is some guarantee that their efforts in lending the money to you will be worth it in the end. Hard money loans function a little differently, as they don’t exactly require proof that you will pay them.

Lenders are usually interested in your past credit and credit scores. This record is a kind of proof that can be used to indicate the likelihood of your ability to pay the loan back. Hard money loans are not exactly concerned with your credit score, as your past spending is not as relevant as the project at hand. The collateral—or in the case of real —estate investment, the home or property, is used as collateral to secure the loan. Your past credit card bills become irrelevant. So the value of the home you plan to purchase and flip is more important than the actual history of your spending.

Real estate can be a quick business. A property that goes on sale and is a lucrative opportunity for profit or a great buy, it will go quickly. Going through a traditional lender can be a time-consuming process. If you have some blotches in your credit history or some negative items, they will certainly play a role in slowing down a lender’s loan process. Because hard money loans are not concerned with your credit scores or financial history or standing, the process of obtaining a hard money loan is far more quick and efficient. It can often happen in just a few days and get you squared away with your new funds for your upcoming project.

Benefits of Hard Money Loans for Real Estate

Hard money loans can be a really great opportunity for people that are considering trying their hand at real estate investments or house flips. They are beneficial because

  • They are generally short term loans of about one to five years
  • They are fast
  • They are reliable
  • They are very flexible loans
  • They don’t look at your credit scores or credit history

So What Happens if You Can’t Repay the Loan?

Because of the way it is structured, if you are not able to pay your loan, then the owners of the loan will take the collateral and sell it to pay themselves back.

So When is Hard Money a Good Option?

Hard money loans can be a good option for people that might not qualify for a loan with a traditional lender. If you’ve had some bad credit history due to credit card issues, or etc. it will not really become a factor with hard money lenders. These types of loans can also be ideal for a house flip, where the purchaser has the home for just a short amount of time and then turns around and sells it for a profit. This way, the loan can be paid back quickly.

Reach Your Wealth Potential With Hard Money Loans

Here at Entrust Capital Funding, we are excited to help people launch their wealth-gaining endeavors. We understand it’s hard work to flip homes or invest in real estate and our hard money loans with low interest rates can help make that happen quickly, effectively, and with a trusted and reputable lender that is owned and operated locally.