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Ten Important Tips for Your 2019 House Flip

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In 2019, there is not only a positive outlook on the economy but a good growth rate on the real estate market. According to realtor.com, sales of the new homes in the United States increased for the second month in a row in February, which means that 2019 is off to a fast start. New family homes, which is a relatively small slice of all U.S home sales rose 4.9%. This is an indicator that consumers are having confidence in buying properties and investing in real estate. These numbers are a positive affirmation that investing in real estate can be a good option for building investments.

Real estate investment and flipping homes is a lucrative venture that has no step-by-step manual. The engagement, creativity, and drive needed to make these projects work is part of the fun and there is no one formula for a successful flip, although many will claim to have it. We can, however, explore the advice of many a house-flipper before us and learn from their mistakes and their wisdom. So we have put together a list of ten tips that can help you with your next flip project. Depending on the kind of property you are buying, neighborhood, and other factors,

#1.  Don’t go Too Big Your First Time. If this is your first house flip, stay away from the tempting larger-than-life projects that might tangle you up in too much all at once. Obviously, the bigger the property the bigger the problems and the more you have to repair and worry about. This might not be a good idea on your first rodeo, as you first want to learn the ropes. It’s a good idea to start with a single-family home and go from there.

#2. Take Care of Things Properly. Home flippers have sometimes acquired a reputation of cutting corners, but this should not be the case. In order to be good at your work, you want to do tackle the big items and do the work thoroughly and consistently.

#3. Find Your Contractors & Rehab Team. As soon as you purchase a property, the time on your profit starts ticking. So, instead of scrambling to find contractors, do your research beforehand and get a good idea as to the contractors you would most likely go for. Reach out to good real estate agents that might work with you.

#4. Study the Local Market. If you are familiar with a particular neighborhood or side of town, this can be beneficial to you. Studying the conditions around you, knowing the schools, crime rates, potential development and real estate prices will help you in making better choices and decisions regarding the properties you buy and how much you spend to fix them, as well as the price you set for it.

#5. Choose the Right Hard Money Lender. Choosing your lender is a big part of the process, as it will determine your interest rate and the dependability of the loan. Do your homework and research the loan company to ensure they are trustworthy.

#6 Leave Wiggle Room. Regardless of how well you craft budgets and estimate expenses, chances are that along the way some problem will arise as during repairs or inspections.

#7 Understand Risk Factors. Real estate investment is active and requires a lot of active engagement. For successful investments, understand the risk factors involved and have a plan to mitigate them or fall back on.

#8 Do an Inspection Before You Make an Offer.  When a property looks too good to be true, it most likely is. This is the kind of cautionary mentality that can be very beneficial to a house flipper. First, you want to do an inspection (most lenders will require it before the loan anyway) and ensure there is not significant structural damage, roofing, etc. If there is, you want to be prepared for it.

#9 Know Who Your End Buyer Is. Understanding your possible buyer for a particular property can really help you decide and prioritize on the fixes and renovations that you do. This helps you know the idea price point of buyers.

#10 Stay Away from Homes With Major Repairs. This, of course, depends on you and your commitment to the project, but if you are new to flipping homes, it might be wise to stay away from houses that need major roofing repairs, plumbing issues, or structural issues.

We are Your Trusted Lender!!

Entrust Capital Funding is your trusted lender in the El Paso area. We are experienced real estate investment lenders, ready to support people looking for that perfect flip or investment opportunity. Your success is our success and why we make the process easy, fast, and reliable. We also have the lowest interest rates in the city.

How Investment Meets Stability: Fighting for Your Financial Future With Real Estate

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There is a reason why countless television shows deal with real estate investing, flipping houses, and interior design. That reason is that regardless of the economic state of the country, people will always need homes. The housing industry, while suffering its ebbs and flows, always has some kind of demand, as people grow older, get careers, move out, and begin their own families in their own homes.  This is why real estate investing can always hold big opportunities for wealth building.

Many Americans look not for exorbitant riches and million dollar homes. Many people today are just looking for a way to establish a stable financial future with plenty of assets and security that gives them peace of mind for their retirement, their children, and grandchildren. And therein lies the magic word: stability. Real estate investing can be a great way to achieve some of this stability when handled properly and with care.

Real Estate Investment Provides Safer Returns

There are several ways to invest your money in an attempt to secure your financial future. One of these ways is investing in the stock market. This is one way that people build their wealth, but it comes with a lot of unknowns, headaches, and volatility. Stock investing can take advantage of a growing economy but can quickly tumble down as soon as there consumer and investor confidence plunges or some unpredictable change occurs.  Real estate investing still sees changes in the market, but it is far less volatile than the stock market. For investors, this means that even when an economy suffers, the likelihood that the market will rise again means higher returns.

Diversification Leads to Increased Stability

Don’t put all your eggs in one basket. This advice is valuable when it comes to your finances. Real estate investment is a lot more dynamic, as it can happen in several different ways. You can purchase a property to flip or rent. If you purchase and flip a property and then put it for rent, you can collect what is called passive income. If you purchase a property to flip and sell, you are making a one time profit.  Any financial planner will tell you that diversifying your portfolio is a great way to spread the risk and purchasing property can help to do that. Of course, it depends on your financial goals. Hard money loans are a great way to get in the game if you’ve had some trouble with your credit history in the past. These types of loans, of course, do not pay attention to your credit history but are more concerned with the value of the property itself.

Land and Assets Will Always Have Some Value

Even in bad economic times there is always value in your land and home. The value doesn’t just disappear the way that stocks often can.  That investment you make is worth something. Therefore, people are always looking to purchase homes and flipping houses is a great way to capitalize on that. Let’s say you buy a property that at first glance is not worth much. You pick it up. You fix it up, remodel it, repaint it, do the quick fixes necessary to make it a desirable residence and it suddenly becomes easier to sell. Someone is looking for that house and when they find it, you will profit.

Achieve Financial Stability With the Right Investment Strategy

Here at Entrust Capital Funding,  we can help you reach financial stability with hard money loans. If you’re looking to start building some wealth and not sure where to begin, real estate investment can be a great way to jump into the profit-making possibilities out there today. Bad credit score? No problem. We got you covered. Entrust Capital Funding has the lowest interest rate in the city.

 

How To Maximize Your Profits as a House Flipper

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Thinking about flipping homes? Rehabbing a home can be an extremely lucrative pursuit if it is approached with caution, understanding, and a little bit of insight knowledge into the inner workings of the industry. Your first flip might seem like an insurmountable task but arming yourself with a few key tips will really make a difference to the outcome. It can certainly help you produce the kind of profit you’re looking for. Let’s look at a few wise words to consider.

Think Carefully About Remodeling Choices

The fix and flip is often seen on television as a great massive overhaul of the home’s interior and exterior designs, bathrooms, kitchen, etc. This makes for great entertainment, as the full transformation of a home is something to witness. However, when dealing with a flip in real life, it is important to note that over remodeling it might not necessarily bring more profits to you as the flipper. As Forbes magazine points out, remodeling takes a lot more time, money, and resources. Embarking on complex remodels will often open the doors for more issues to arise.

  • Tearing into walls can lead to more problems. When digging too deep you might run into a problem you didn’t bargain for. Also, a mistake by the contractor can extend the timeline.
  • More time more money. Another reason why spending an extended amount of time on flips is not advisable is because the more time you spend on it the more money you will be spending and possibly losing.
  • The changing market can make a difference. If you hold on to a house for too long, the market may change and alter your original calculations, pricing, etc.
  • Keep it simple. Experienced house flippers have said that keeping the repairs and remodels simple is the best way to go. Completely changing the bathroom or kitchen will not necessarily pay off at the end. Keeping the changes to what is necessary is a wiser investment choice in a lot of cases.

Some possible risks

There is no shortage of date or factors you can consider when flipping a home. This doesn’t mean you have to fully learn the industry but only be aware of certain things that can impact the way you approach your flip, how much your renovate, how much you spend on repairs, and how quickly you get it back into the market.

Consider market trends. You don’t have to be a real estate expert to look for some big patterns on market trends. You can check in with a multitude of sources —like realtor.com, Joint Center for Housing Studies of Harvard University, neighborhood price ranges, local MLS statistics, census.gov, even social media— for updates on the market. This will give you some insight into demographic shifts that can impact the price of the property you are looking to buy.

Look at changing interest rates. The interest rates on home loans are always important to consider. The interest rates might tell you something about the prospective buyers for your planned property.

Valuation. This is a critical part of the flipping process. Carefully considering and estimating the price of the finished product.  What is the After Repair Value (ARV)? Get a good idea of what the selling price will be before you make an offer to purchase the property.

Choose contractors wisely. In a previous post, we talked about the importance of choosing the right contractors. Doing some research, weighing your options, and calling around, will go a long way when it comes to choosing a reputable and trustworthy contractor.

Ready, Set, Flip!

ATTOM, the real estate data company, reported the average profit on house flips can be up to $65,520 in the second quarter of 2018. Of course the number varies on whether you are doing a lower price range flip or a high-end flip.  If you’re ready to embark on the flipping journey, a hard money loan might be the solution for you to get started fast. We don’t do credit checks and you can hit the ground running asap. Give Entrust Capital Funding a call today.

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An Inside Peek into 2019 and the State of the House Flip

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It was just over a year ago that WalletHub released its top list of cities deemed the best places for house flipping in the U.S. The top of that list surprised many—as it is not an often cited housing market and comes from one of Texas smallest cities— but it didn’t surprise us. The border town of El Paso was named the best city for house flipping in Texas. This means it beats out other hot markets like San Antonio and Dallas.

The rankings were based on a few criteria and measured from 22 key indicators including market potential, remodeling costs, and quality of life. El Paso scored 95, 9, and 48 in the above.

The El Paso Housing Market Today

The median home value in El Paso is $126,700. This is significantly lower from other cities in Texas. The median home value in a San Antonio zip code, for example, is listed at $278,300. This is a significant difference and makes house flipping in El Paso a much more accessible endeavor. The values of El Paso homes have gone up approximately 4.5% over the past year and seem to be rising. The median price of homes in El Paso is about 1$68,250 compared to San Antonio is $285,350.

El Paso’s Growth

El Paso is a city with a growing population and in a September 2018 report, was said to be enjoying a healthy buyer’s market. This means there is a lot of opportunity for people to snatch up valuable properties in areas being remodeled or rebuilt and take advantage of the growing market. In 2015, El Paso’s population was 676,391 in 2018 the latest census data showed it was closer to 683, 577 in 2017. This shows a considerable increase in the past couple of years and means that many more people moving here are in the market to purchase a new home.

Tips Before Jumping In

So if you’ve been thinking about house flipping for some time, there are probably hundreds of questions, doubts, and trepidations that cross your mind. Below are some initial things to keep in mind before you jump in:

  • Understand risk vs. reward.
  • Research the neighborhood the house is on, the side of town, schools, etc.
  • Take notice of the renovations that might be needed and do a little preliminary research on the cost of those particular renovations, contractors in the area, etc.
  • Avoid homes that require expansive repairs like mold, asbestos, foundation problems, etc.
  • Learn the basics of the market. You don’t have to become a real estate analyst, but looking at a few trends, some patterns, or some information on your particular market can inform you of some important aspects.

And Go With the Right Lender

Entrust Capital Funding has the lowest interest rate in the city. As a part of a cohort of real estate companies, we know the market well and know that the market is hot for buyers. A hard money lender doesn’t check your credit or take weeks on end to happen. We can get you the loan asap, so you can move on the property you want and start the profit clock.

Tips for Hiring the Best Contractor for Your Flip Remodel

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House flipping has become a lucrative business in the past couple of years, as television shows and success stories have hit the mainstream. There is a lot of profit potential to be had in the art of flipping houses, but arming yourself with knowledge and advice can go a long way in a business that has little room for error. When you purchase a home with the intent of reselling it, chances are there will be some remodeling and repairs involved before you can put the house back on the market for a profit. For this month’s post, we thought we’d take a look at a crucially important aspect of house flipping.

If you ask any house flipper what one of the most difficult parts of the job is, they will tell you that a big part is being able to hire the right contractors. It is inevitable that a house flip will require some renovations or repairs, some more complex than others, but quality work is essential for a successful flip. Some people take a more ‘hands-off’ approach to a flip and some like to be managing all the subcontractors involved. Weigh your options as to what you want and prefer to do. Hiring a general contractor means that any subcontracting goes through the main company and this is important to note.

Below are some things to consider when hiring a contractor to perform your repairs.

Start with a plan.

There are many ways to spruce up a house for a flip. Some repairs are absolutely necessary, like fixing broken pipes or replacing roof shingles. Others are more aesthetic, like putting in a new vanity in the bathroom or redoing the kitchen cabinets. Before you begin getting any estimates or calling around, have a detailed and prioritized plan about what needs to be done.

Choose the right company for the right job.

Make sure that the contractors you are hiring are specialized and/or experienced in the particular work you are needing. Just because a company is great in redoing kitchens, doesn’t mean they can put in an addition to the home or fix the bathroom with the same rate of quality.

Don’t go with the first one.  

You don’t always have to go with the first contractor you call. Interview at least three different contractors, look at their past work, get a sense for their work ethic, their reputation, and their pricing.

Budget for surprises.

It is almost expected that once work begins on a house, surprises are inevitable. You are likely to find a roof leak here and there or rotten flooring underneath a carpet, etc.

Sign a clear and detailed contract.

Make sure that all the work that is being done is in writing and clearly detailed in a contract. This includes deadlines, prices, and a detailed description of the main job being performed.

Check reviews.

While online reviews will not tell you everything and you don’t want to rely on it as your main source of information, it can be an important way to get a sense for their work. Review sites like Angie’s List and Yelp might offer a way to get some reliable reviews.

If house flipping or selling rehab homes is something you are interested in doing for a longer period of time,  then you can compound your knowledge as you go. After the first or second home, for example, you’ll know the materials, parts, and repairs that you are more likely to do and will have worked with some good contractors that you can reuse.

Get Started With House Flipping Today

The first step to working in the business of buying, repairing, and selling houses is starting with the capital to do it. Entrust Capital Funding will provide real estate investors with reliable loans to get the job done. Our process is fast and easy. We also offer the lowest interest rates in the area. In addition, we have trusted partners we have worked with in the past that can provide reliable contracting and labor. Call us today and get started!!

The Era of Remodeling: Why People Love Home Renovation

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You might not be aware of this, but there are approximately (maybe more) twenty television shows dedicated to real estate renovation and house flips. People love to watch home transformations. There is something about watching as a house goes from a dilapidated, rotting, termite-infested, asbestos-painted, poorly insulated with rusted appliances-home to one that is rescued from the real estate underworld, brought back from the dead, and soon glimmers with new life. All of this achieved through hard labor, clever remodeling and construction, decoration, and interior design. There is something that draws people to this particular venture and it might just be far more ingrained in our nature and our current culture than we think.

There is practically an entire internet genre dedicated to DIY home projects. Yet, it is not just the rewards that keep people coming back to home renovation. As CNBC reported, house flipping is at record highs. In 2017 there were more than 207, 000 house flipped. A house flip is defined as any home bought and sold in any 12 month period. You buy a property, work to renovate it, and sell it for a profit.  

Flipping a home will usually involve a certain amount of renovation and many of these shows include flipping as part of the “plot.” In fact, that’s part of the appeal—people love to see something infused with new life and they love to see the profit that comes from it. But what is it that makes us so attracted to home renovation shows? Why have home projects become such a popular pastime for homeowners and weekend warriors everywhere?

There is Inherent Romance in a Beautiful Home

There is simply something romantic in a beautiful home.  Older homes especially have this ingrained romantic quality. Houses tell stories and an old home infused with new life tells a great story of rebirth. There is something wholesome about the labor involved in restoring repainting the walls or fixing the roof. At the same time, when people sacrifice so much for their home, the maintenance and restoration of it have more than economic implications; there is sentimental value, there is a personal and emotional reward.

Economic Reasons

It wasn’t that long ago that the country went through a great recession that presented a lot of challenges to the real estate industry. In many cases, people could not afford to buy new homes or were short on cash to do their home repairs. During this time people had to resort to maintaining their homes on their own and in doing so discovered a whole new world of adventure exciting projects.

The Internet

You can type in anything from installing bathroom tile to repainting the bedroom and you will find a plethora of DIY videos, blogs, and tips. The advent of the internet provided people with access to amazing resources. Hence the rise of the self-renovation and the DIY craze.

The Drama of Transformation

People love to see progress and overcoming challenges. Every single one of these shows is usually presented with challenges or unforeseen problems along the way to the renovation. In fact, if you’ve ever tried to do anything on a house, you know that you’re likely to run into problems.  People relate to this.

There is a Reward at the End

Human beings are hardwired to seek rewards. We also admire people with vision and renovating a house requires technical knowledge and creative vision. The bottom line is that home renovation has become a big cultural topic. People love to fix up their homes and they love to rehab homes and flip for a profit. Why? Because everyone loves a beautiful home. The real estate industry is ripe with opportunities and renovating and flipping homes is just a part of it. With new lending opportunities, the industry is now open to everyone interested in making money off of real estate. As El Paso grows and sees more and more for sale homes and interested buyers, the potential to make money expands too. Working with hard money lenders is just one way to do it. Don’t know what that is? Call Entrust Capital for free information.

The Art of the Flip: Use Hard Money Loans To Flip Houses

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You’ve heard the term. You’ve seen ads on YouTube and television about it. Maybe you’ve even seen the show Flip this House on A&E or Flip or Flop on HGTV. You’ve heard people talk about getting rich, but what is the big deal with hard money loans anyway? Thousands of real estate investors across the country are discovering the real meaning of making money by buying and flipping homes. Flipping is a term that refers to buying a property with the intent of quickly remodeling and/or reselling for a profit. It’s a tricky business, but when partnered with the right lenders and handled correctly, it can create lucrative opportunities for money making. Use hard money and learn the art of the flip.

So where do I begin? That is the question. Hard money loans don’t require a credit check and are therefore much faster to get. This is because the money is coming from private investors ready to see it go to good use and see a return on it. So once you’ve got a loan to work with, you want to get started. Below are some tips to get started on the art of the flip.

#1 Learn. Get to know the market. Read a few books or attend a few courses. Getting a sense for some basic market trends, jargon, and concepts will serve you well in the long run and give you a foundation through which to build the instincts to make good decisions.

#2  Take it easy. Don’t dive into anything and start small. If you’re new to the business, don’t go for the most expensive luxury home. Try a small single family home or a low-cost property without too many complex repairs. This will whet your appetite and help you experience the process without tremendous risk.

# 3 Trust your construction crew. You will be making repairs and renovations to the property you plan to flip so you need to have people that you trust. Once the clock is ticking is not the time to experiment with contractors and new people. Go with someone you are familiar with and can trust to get the job done.

#4 Don’t over improve. Yes, this is a common mistake. Many first time flippers will spend way too much money on repairs that may not have been needing in the first place. Be cautious about what you improve or fix and get a good sense for what will actually make a difference when it comes time to sell.  Some repairs will have to be made based on the inspection and appraisal, but others might be up to you and there are strategic ways to approach this.

Television shows like Flip This House have seen a tremendous amount of success— despite the stars’ often questionable character— because people see the potential and opportunity for themselves. In reality, there is plenty of opportunity out there for people that are interested in making money and learning a new art. Flipping is one thing, but without the right lender and the help of trusted real estate agents and real estate experts, you might find yourself disoriented and having lost your investment. When it comes to hard money loans in El Paso, there are very few trusted options. Entrust Capital Funding started in the business as a way to help people improve their wealth and further train real estate investors and agents.

 

Become a Profitable Investor With Real Estate Investment Loans

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Making money on real estate is not a new idea. People have been doing this for some time, but as the market changes, shifts, and adapts to new trends and lifestyles so do the best tactics for turning a profit. Real estate investment loans are a great way to make money in today’s market. Entrust Capital Funding is a trusted private lender in the El Paso area. We can help you grow your wealth. Here are a few reasons why hard money can help you thrive:

As you may know the concept behind real estate investment loans from private money revolves around the idea of borrowing from private lenders and flipping the home. “Flipping” is an industry term for re-selling. The process of flipping a home will involve acquiring a property, putting in some repairs, and putting it back on the market. Private money lenders — also called hard money lender or peer-to-peer lending— circumvents the need for a bank and goes straight to private investors willing to put their money on the line for you.

#1 Find the Right Deal

When looking to flip homes, the first step is learning how to spot a good deal. Learning the basics of the real estate market can come in handy here. If you find what you think might be a good investment property, consider doing a little extra research on the neighborhood, the area of the city, assessing preliminary repair costs, crime, etc. These are all factors that will come into play when you’re looking to make some money off a property.

# 2 Know Your Market

New and seasoned investors should spend a little bit of time learning some trends in their market. Market cycles exist in every market and paying attention to these patterns can help you spot a deal and stay away from potentially bad ones. Evaluate the market before you purchase anything.

#3 Find the Right Lender

Real estate investment loans are key to a successful investment venture. Not only will the private lender be the source of your acquisition fund but they will be part of the investment with you. Interest rates are inescapable, but some private lenders can really go to town on this, so look for one that has a low-interest rate and clear straightforward contracts with no hidden fees. The right lender will also conduct proper and thorough market analysis that gives you an objective view of what you might get for the property.

#4 Make Time

If you’re a first-time investor, you might underestimate the time it takes to flip a property. First, it takes some time to find the right deal, once you have that and get the real estate investment loan, you’ll need time to do investments, supervise the investments, schedule inspections, and so forth.

#5 Be Patient and Confident

There are some unknowns when dealing with real estate but you have to trust the process and be confident and stay calm. By having the right lender and conducting your own research, you are already on the right path. Trust your work and your process and dive into the market with confidence. At the same time, don’t forget that patience is needed to get past some of the frustrations involved.

#6 Don’t Get Emotionally Involved

Real estate market —while more stable than the stock market — is still very much a numbers game and getting emotionally involved will often cloud judgment and lead to some bad decisions. Be honest with yourself about repair costs, vacancy cost, any closing costs involved, and be practical about your risk tolerance.

Go With El Paso’s Trusted Lender

Entrust Capital Funding not only has the lowest interest rates in real estate investment loans but is committed to seeing their investors thrive. Why? Because when you win, the community wins, and when the community wins, everybody wins! This is why, as part of the largest coalition of real estate-related companies, we understand the market, we know its tendencies, and have the best connections to ensure the best deal and the most accurate research.

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Minimize your risks

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Want faster closings? Can’t use credit to get a loan? El Paso Texas’ Hard money lending is your best choice. But there a few things we want you to know to reduce risks with Hard money loans. There are usually risks involved with money loans but if you keep this goal in mind when getting a loan. Pay the loan off as soon as possible. This reduces higher interest rates. The longer you take, the more interest you will be paying rather than the actual loan amount.

Always have an assessment of your purchase done. The worst thing you want to happen is not getting your money’s worth and the property sells for way less than what you anticipated. Have it appraised before you do anything, this insures you are risking less.

Make sure you are honest and up front with your lender. Make them aware of your plans and ideas with the property. The best way to determine what the best solution for your loan is to be transparent and able to communicate well with the lender. Another thing that’s important is spending less. If you are remodeling or flipping its always smart to choose how you will spend your money wisely. Spend it where it is needed the most and not carelessly on things you can’t get your money’s worth!

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Are You Choosing The Right Lender

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El Paso, Texas Hard Money Lenders are everywhere. There’s so many to choose from and it’s tough to know whether or not they are reputable and honest. These things are important. There are so many options it may be a bit difficult to make a decision. Its best to be in search for one that can actually get you profit and up your business or home. Look for the differences in annual rates and per month interest rates. Are there any penalties? Sometimes it’s not easy to finish a project in time so it’s always good to know about penalties just in case. Speaking about time is your lender punctual? There’s no need to be working with a lender who takes weeks maybe even months to finalize a loan. The quicker they work the better it is to work with them and get started on your projects. Not every offer is a winner unfortunately but at least doing your research will save you time and money.