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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. 

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.