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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.

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.