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Real Estate Wholesaling Explained: What It Is and How It Works 

By | El Paso, Real Estate Wholesaling | No Comments

Smiling woman holding hundred dollar bills in front of a simple home designThere are many ways to invest in real estate in El Paso, including buying your own home or purchasing a share of a property. What many people do not know is that you can get invest in real estate or become involved in the business through the process of real estate wholesaling. 

Wholesale real estate is an especially good opportunity for investors who are starting out with investments. As long as you have the time, effort, and dedication, you could reap plenty in the end. Usually, wholesaling requires a real estate license in most states, but this is definitely a process to look into.

Interested? Well, you’ve come to just the right place.

As your El Paso real estate wholesaling team, we will explain more about how the process is done, step by step!

Call Entrust Capital Funding today —  (915) 320-6633

How El Paso Real Estate Wholesalers Make Money 

Before we dive into the process, it is important to know how exactly one can make money through wholesaling. The key is to find a distressed home that way you can make a contract for a small, earnest money deposit, done under 1% of the total purchase price. 

The wholesale fee (when a contract is assigned to another investor) depends on the wholesaler and the property but usually ranges between $5,000 and $10,000. There is a level of risk to wholesaling if you can’t find someone to close the contract, but there is also the possibility of making plenty of money. 

How to Real Estate Wholesale in 6 Simple Steps 

1) Find a Distressed Property and Find an Eager Seller 

As we mentioned already, the first step is to look for a distressed property in El Paso, which is one that is on the brink of foreclosure or may already be owned by the bank. Like this, you can purchase it at a low cost. Once you found a property, you have to confirm if the owner of the property is interested in selling. 

2) Determine the Best Potential Opportunities 

After finding a property and a seller, a wholesaler needs to confirm that the deal works out financially. There are two ways to identify the best potential opportunities, including ARV (after repair value) and MAO (maximum allowable offer). ARV is the fair market value of the home after all repairs have been done. MAO is the highest offer a wholesaler can make to a distressed seller, while still earning a profit. 

3) Negotiate on a Price, Start a Contract 

Because selling a home for less than what it’s actually worth can be hard, this is where wholesaling helps. You can put a property under contract at a price below market value by waiving as many purchase contract contingencies, focusing on the benefits, or offering to purchase the appliances and furniture as well. Once an agreement is made, you can assign a contract to another party. 

4) Find an Investor You Can Assign the Contract 

This is where you have to find another investor to assign the contract to, close escrow, and make repairs estimated by the wholesaler. A contract usually has no more than thirty days to assign to an investor. Wholesalers can reach out through networking events, listing the property on El Paso real estate websites, talking to real estate agents in El Paso to get in touch with interested clients, and more. 

5) Agree to Terms and Conditions 

Once you have been able to assign the contract to a buyer or an investor, you have to agree to terms and conditions. One of the best ways to negotiate an agreement is to split the difference or the wholesale could ask for a fixed wholesale fee of 10% of the ARV. An El Paso real estate wholesaler who does not exceed MAO usually has plenty of room to negotiate a win-win deal with the investor.

6) Close on the Property 

The last step works the same as traditional real estate closing does. Closing costs are paid by the buyer and seller as agreed in the contract and then the title is transferred to the buyer. Depending on the market, the closing could take place at the office of a real estate attorney, a title company, or through an escrow agent. 

Where to Find Real Estate for You to Wholesale 

Finding the best real estate to wholesale is usually done through networking with local real estate investors, connecting with investor-friendly real estate agents, or contracting attorneys or county clerks to check for estates that have homes or other kinds of properties. 

Learn More About How to Get Involved in El Paso Real Estate

It is evident that real estate wholesaling in El Paso is a great way to make healthy profits, especially for those who are willing to put the time and effort in when learning about the business. If you are ready to take the next step, we want to help. Contact Entrust Capital Funding today, to learn more. 

Young happy couple moving into their new home. They unpacking and cleaning new home

10 Important Questions to Ask Your Mortgage Lender 

By | El Paso, Home Buying | No Comments

If you are planning on buying a home, there is plenty to learn. As daunting as it might seem, you don’t need to worry. Odds are you’ll get the hang of it along the way. Should you have any questions—no matter how simple or complex they might sound to you—you should never hesitate to ask for help. 

Ultimately, the home buying process is a learning experience and you never know if you might find yourself in this scenario sometime in the future. We outline some questions you should ask your lender before closing off on a mortgage that way you are very familiar with the terms of your loan. 

My credit isn’t as good as it could be. Can I still get a loan?

The answer is yes! You can get a loan that is suited for those with low or poor credit. The FHA mortgage loan accepts buyers with low credit scores because the loan is backed by the federal government. This is something you should discuss with your lender right away. 

How much of a down payment do I need to put down if I am a first-time homebuyer?

The standard of a down payment calls for 20% of the mortgage. However, applicants who qualify for a VA or FHA loan can possibly pay as little as 3.5% of their total mortgage for a down payment. However, if you can afford the 20%, you should do so. 

What will closing costs look like?

Closing costs typically include fees such as: 

  • Title search fees
  • Title insurance
  • Recording and transfer costs
  • Loan preparation fees 
  • Discount points to get a lower interest rate 

You can always ask your lender to provide a comprehensive rundown of what will be charged in closing costs. 

Does your interest rate include loan discount points?

Mortgage discount points are typically available to future homeowners who want to pay an upfront fee in order to gain a lower interest rate. Discount points are not mandatory, so this is something to prepare for if your lender doesn’t offer that. 

Do you charge any application fees, credit report fees, or any other upfront fees?

Some lenders will charge application fees. These fees are intended to cover the costs of processing your application for a new loan. These costs typically include credit checks and administrative expenses. Application fees vary depending on the work it takes to process your loan application. 

How long will it take to get my loan with the application to closing?

Oftentimes, a lender will quote a rate that is good for 30 days, but it can take a total of 45 days for your loan to close. If this timeline doesn’t work for you, you should ask your lender about how this can affect your plans. This applies to purchase as well as refinanced loans. 

Are there any prepayment penalties?

This fee is charged when you pay all or part of your mortgage loan off early. It may also come up if you ever decide to refinance for a lower rate. Lenders cannot charge early payoff penalties on FHA, VA, or USDA loans, other loan types may charge penalty fees. You should ask if this applies to your loan. 

Do you provide any down payment assistance programs?

Oftentimes, lenders offer down payment assistance programs and they are usually offered to veterans and first-time homebuyers. VA loans do not require down payments and offer lower interest rates. If you have limited savings, you should ask your lender what programs you might qualify for. 

When can I lock in the interest rate?

Interest rates are known to fluctuate. Locking in a rate can be helpful. You should inquire with your lender about when you can lock in a particular rate and for how long you will be able to keep it locked in. 

Can you estimate when the closing will be?

Many of the factors that determine the close date are out of your control as an applicant. Delays can happen and the best way to avoid them is to simply be in touch with your lender as much as possible. Asking your lender can help you get a rough idea of the timeline you’ll be working with. 

Get a Loan that Works for You with Entrust Capital Funding 

Entrust Capital Funding offers unique services you will not be able to find anywhere else. Our hard money loans can help you increase the value of your home, being able to price it for more, should you ever consider selling. Want to know more about our services? Give us a call today to learn more. 

Flipping houses concept, flat tiny person vector illustration

Get After Your Flipping Dreams — 4 Tips for Successful House Flippers & Real Estate Investors

By | El Paso, home renovation | No Comments

Flipping homes for money does not happen overnight. People make good money flipping homes every day in this country, but every one of those people had to do their research, take some risks, and understand the different lending options available before they jumped into it. The footwork put in before the deal is made will serve you well as you navigate the uncertain waters of real estate investing. 

Buying a home and flipping it, is not for the faint of heart. So if you’re thinking about testing the waters of home flipping, read our introductory guide on how to get started. 

Is Real Estate Investing for Me?

Let’s put it this way, real estate investing is not the type of thing people stumble into without any interest in it. Most successful house flippers possess a couple of natural attributes that serve them well in the home selling business. Some might describe it as follows:

  • A natural hustle: If you’re one of those people that doesn’t have to be told what needs to be done and you just go out there and get after it, this might be for you. Selling homes is a hustle and you need the inner spark to get it done. 
  • An eye for a good deal: Some people are good at identifying a potential deal. Whether that’s getting a household item or the best deal on a car. 
  • A mind that’s comfortable with numbers. Real estate investing will have some surprises and some unexpected costs, but a successful investor knows how to crunch the numbers and get accurate and precise estimates on costs.
  • A cursory understanding of the market. While you don’t have to be a real estate expert, knowing the market that you’ll be working in will make it easier for you to spot a good deal or a bad one. Having an eye for potential good investments serves a house flipper well. This includes knowing neighborhoods, upcoming city renovations, developments, etc. 
  • Have a solid and fundamental understanding of home repairs or know someone that does. Being able to spot a good contractor can be a lifesaver. You don’t have to be the world’s greatest handyman, but having some understanding of home repairs or some experience hiring trusted contractors puts you in a better place. It also makes it easier for you to spot needed repairs on a possible flip. 

4 Tips Every House Flipper Should Know 

There is no golden book or Holy Bible of house flipping, but there is a lot of tried and true advice out there from people that have learned things the hard way. We have written a lot about finding the right flip and breaking through the real estate business, but there are several other key points to consider. 

Here’s some sound advice to keep you on the right track. 

#1 Arm yourself with knowledge—consider a real estate license

While there is no set requirement to become a house flipper, getting a real estate license is a good place to start. Going through the process teaches you to break through the real estate lingo, learn important terms, regulations, forms, HOAs, etc. You make connections in the community. You also get access to the MLS to better gauge prices. Also, going through the classes and instruction will solidify your commitment to the endeavor.

If you want to jump in right away, contact a person you trust and know is a solid real estate agent. Perhaps you have good connections already. Use them.  

#2 Establish good connections with reliable contractors

You don’t want to wait until you have signed on a house to start looking for your contractors. If you know the market, do your research on well-vetted contractors and workers. Even if you plan on doing a lot of the work yourself, you’ll likely need to hire a licensed contractor for a job or two. Establish connections with them before so that you have a go-to and know who you can trust. 

#3 Work the math— flipping homes is a numbers game

Before jumping on a deal, make sure that you know how to work some numbers and accurately estimate the cost of certain repairs. For example, putting in new floors. Make sure to factor in the cost of all materials and labor. Don’t forget to factor in taxes, insurance, mortgage payments, real estate commissions, and other marketing costs. 

#4 Don’t over-improve the home — this is not your dream home

One common mistake some beginning flippers do is they try to do too much to a house. The fact is that even in a seller’s market, you’re not going to get a home for more than the market is willing to pay. This has a lot to do with the neighborhood and the home itself. Remember that you’re not working on your dream home. You’re just working to get the home sold without overspending on repairs. For people with vision, it’s almost a creative experience imagining what a house can become. They easily get carried away, especially at first. Be frugal, be cautious with what you spend on repairs. 

Get the Right Loan Fast and Kickstart Your Flipping Dreams!

We didn’t even get to the money part. The kind of loans that you get are a central part of the house flipping business. Here at Entrust Capital Funding, we offer reliable hard money loans so that people don’t have to waste time going through banks. 

Ready to get your hands on some real estate investment loans and opportunities. We want to hear from you. Call Entrust Capital today

House before and after repair vector illustration. Flat design.

Finding the Right Flip: What To Look for In an Investment Property 

By | El Paso, Home Buying | No Comments

So, getting a real estate investment loan in El Paso is easier than you thought. What now? So you look for the next opportunity that calls your name. And right now the El Paso real estate market is pretty active. So, what do you look for when searching for the next best home to flip? 

There is no single correct answer. After all, being a real estate investor is all about vision, creativity, and what we like to call that ‘inner hustle.’ It’s not a slow man’s game. When it comes to real estate flips, you have to move quickly but strategically, take risks but weigh your options, know the ground game, understand the market, have the right team of contractors, and move swiftly towards the end goal. Many of the United States’ home sales were a result of house flips. According to Investopedia in 2019, about 6.2% of all home sales in the United States were house flips

The Ultimate Checklist for the Best Flip — Keep These 5 Tips in Mind 

Just because a home looks a little run down and is calling your name doesn’t mean it’s the right one for you. Television makes house flipping look like a walk in the park. There are plenty of homes out there that could use some renovations, but your best flip will meet one or some of these criteria:

  1. Make sure the neighborhood has potential. When someone buys a home, they are likely buying more than just the lot and structure. They are committing to the neighborhood and locality in which it sits. A lot of time a neighborhood’s popularity is related to local schools, nearby amenities, or surrounding parks. Finding one of the smaller homes in the big neighborhoods can prove a big investment. That’s because the high value of the neighboring properties makes the smaller home more accessible to a larger buyer pool. 
  2. See beyond the lack of curb appeal. You are a house flipper. Think like one. That means seeing what something could be and not what it is. It’s all about finding the quickest road (no shortcuts) to the destination— i.e. looking at how to get to a desirable home from the conditions of the home you see. Is it going to take landscaping? A new driveway? A new front door and a couple of trees? Etc etc. A renovation doesn’t mean you have to install a whole new floor or do a full kitchen remodel. It might mean being strategic with these renovation options and using what you have and working with it.  
  3. Don’t forget to take a quick look at the neighbors. Find a great house in a good neighborhood, but have a crazy cat lady as a neighbor? This might be a problem. Eccentric is not always a great quality in the real estate market, so if you find a home that appears to have neighbors that are on the fringe and are keeping bees, or have ten chickens, goats, and a mini pig, take that into consideration. 
  4. Stay away from busy streets or heavily trafficked streets. A lot of really nice older homes will often be located in unfortunate subdivisions that were somehow chewed up by modern development. A home that sits right next to a busy street that sees a lot of traffic and noise, will always sit on the market for a long time. Consider staying away from these properties unless there are other characteristics that outweigh this downfall. 

Three Quick Warnings: Stay Away from These Common Mistakes 

Just like there is some general advice to follow, there are also a few mistakes that can be avoided with just a little background information. The 70% rule known to a lot of real estate investors states that an investor should pay no more than 70% of the after repair value (ARV) of a property minus the repairs needed. 

Mistake #1: Belly flop into the first deal without doing your homework. Research financing options and make sure you know which one is right for you and your circumstances. Remember to factor in the costs of repairs, as it is the only way to make sure you’ll make a profit. 

Mistake #2: Assuming that it is a part-time endeavor. It can be for experienced real estate investors. If you are just starting out, it might not be the best approach to do this as your side-gig. At least, not for your first property. Finding the right property, researching value and market, plus the acquisition, take time. That is not counting the time it will take supervising contractors. 

Mistake #3: Losing patience and jumping the gun. This piece of advice can apply to many endeavors. Real estate takes patience and some prowling. Get familiar with the kind of property you want to flip and jump on it when the time is right. 

Found the Right Property? Now Get a Quick Real Estate Investment Loan and Get to Flipping 

Getting a hard money loan will be faster, easier, and will not present obstacles to the acquisition of your right property. Call Entrust Capital and get the money you need to flip today. 

Want to find out more about hard money loans for real estate investment? Call Entrust Capital in El Paso and learn more. 

House before and after repair and renovation vector illustration. Flat design.

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 

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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

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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. 

A Secure Investment: Real Estate and House Flips During a Time of Crisis 

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Young business entrepreneur woman working at home while having breakfastAccording to a recent Gallup poll, both high-income and low-income Americans have lost faith in their stocks. Interest in stocks and mutual investing fell dramatically in the first quarter of 2020. Of course, these are unprecedented times and the market has certainly shown it.

Thirty-five percent of Americans say real estate is their favored long-term investment. This has been the case since 2013 and remained so especially during the time of the pandemic. The reason for this can be twofold: one, real estate is tangible, and even during a pandemic, it is still there. You can see it. Feel it. Touch it. Two, the markets will always come back, at some point or another, but they do come back, and when they do, people will always need a place to live. 

Tips For Preparing For a Recession as an Investor

We don’t actually know what is going to happen to the markets as the country begins to open up. There are plenty of analysts and market gurus projecting their predictions. Some claim that there is likely to be a recession coming out of this. That may or may not be the case. In fact, it may be that the markets bounce back as people are eager and able to get back to work immediately. After all, we’ve never had a self-imposed economic shut down before. Yet, as a real estate investor, you always want to be prepared and have a few things in mind in case a recession does hit. Here are some things to keep in mind:

  • If you have properties or assets, you might consider selling some so that you have more liquidity. 
  • If you are prepared, consider making cash offers on properties likely to go back up quickly, that is, places with desirable schools, good neighborhoods, etc. 
  • If you have the capital, buy properties that you see have potential. Many real estate investors, after the great recession of 2008, figured out that they could have bought more properties since prices went insanely low. 
  • If you’re a house flipper, you can work on building relationships and using several lenders, so you have trusting relationships before a recession hits. 

Well, that still doesn’t answer the million-dollar question directly. Does that make now a good time to put in an offer on a property? 

The truth is, there is likely no straightforward answer to that question. The answer will largely depend on what you plan to do with the home, your current situation, your other properties, etc.

It might very well be a good time to buy an investment property if there is inventory at a good price. The challenge is, of course, that there were a lot of pauses put on the home selling process, that inventory is quite low in many American cities, including El Paso. 

How the Stay at Home Orders Upended the Home Buying Process 

Many companies that specialize in buying or selling homes have put a pause on operations. New listings, according to Market Watch, were down 44% in April compared with the previous year. This translates to about 189,000 fewer homes on the market than during the same period in 2019. New home construction was also halted, as many builders became wary about the state of the housing industry. 

So there might be a lower amount of inventory due to these reasons:

  • Seller uncertainty 
  • Real estate companies halting services
  • The rapid rise of unemployment and sellers pulling their listings
  • Lack of foreclosure homes. 

All this being said, it doesn’t mean that it’s necessarily a bad time to buy an investment property. A deal is a deal. And if a deal pops up in a market that you, as an investor, see as a good investment, it is the right time to buy. The returns will come later, as the market picks up. In fact, there is already data suggesting that buyers are returning to the markets and slowly things are picking up. 

It’s important to keep in mind that all of the above reasons are only temporary. Seller uncertainty tends to fade as the market begins to reopen and states go back to normal. Texas is one of the states that is opening the fastest after coronavirus. And while El Paso seems to be slower than the rest of the Lone Star State, there are still plenty of listings in the El Paso market. That being said, Texas is a robust state with a strong economy and a business-friendly environment. This will likely mean a quicker recovery. 

Get Confident, Look for a Deal, and Be Ready to Invest For Your Future

Every investor knows that investing—whether it be real estate or stocks—always involves some risk mitigation. Uncertain times, certainly call for more attention to detail and keeping your eye on the markets. That doesn’t mean, however, that it is not a ripe time to capitalize on the market downturn. Finding a good deal means that your returns will likely increase as the market picks back up. Here at Entrust Capital Funding, we encourage investors to go with their gut and use their entrepreneurial spirit to seek the right deal for the best price. If you’re looking for some funding to invest in that diamond in the rough, give us a call today.