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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. 

Harnessing Powerful Concepts Into the Art of House Flipping

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Male hand flipping abstract paper with house sketch, revealing new interior design. Mortgage and moving concept. 3D Rendering

There has been no shortage of real estate gurus over the years. Dozens of acclaimed speakers claiming to have the magic formula to real estate investing have likely passed through your town doing sold out lectures, conventions, and expos. Most professionals will tell you, however, that there is not just one formula, particularly for a business as dynamic as real estate. Still, if you are venturing into real estate investing and house flipping, you’re probably looking for some general guidance and tangible useful advice.  Understanding certain basic principles of taking action might be a great way to get over the fear and crack open the initial stages of real estate investing. 

One of today’s leading voices in the self-help motivational realm—although not exactly a traditional motivational speaker himself—is the tall, articulate, and charismatic Tony Robbins. And while Robbins does not limit himself to only one industry, his advice is more focused on mastering human emotion and action. And some of the key principles can be applied directly to real estate. Let’s take a look at some helpful tips:

  1. Decision is the ultimate power. This is probably one of Robbins’ central ideas. The thought here is that decision is what drives destinies and without a decision you can be stuck in no man’s land for some time. So if you’re thinking about real estate investing. Don’t think about it too long. Either go for it or don’t. 
  2. Utilize the Incredible Power of Focus. And just like the above, the concept applies to everyday life and other personal decisions, as well as real estate. You can spend years studying the literature of how to best flip a house, but if you focus on action and doing, you’ll likely learn faster and get where you want to go. When concentrating on one thing the human mind can yield and incredible force. 
  3. Always move towards bigger things. Don’t get caught up in the details of life. Move towards the big goals. This way you are always moving towards the big things that you aim for. 
  4. Take Action. This is a big leading principle. Nothing happens without action and dabbling in indecision can not only make you lose a lot of time but a lot of money as well. If you haven’t taken action, you haven’t truly decided. This is key. In order to move towards these big goals you have to take steps to get there. Reading about real estate investing every day, printing articles, and never really taking action is not exactly a path to success. Reading is good, research is good, but action is better. 
  5. Look for a mentor. Finding someone that understands real estate and can give you some advice on your first flip, how to work your first investment, finding your price ranges, etc, can be a wealth of knowledge in one conversation. 

And once you’re in, keep moving forward. There might be mistakes, there might be setbacks, but dedication gets you there. 

Focus, Take Action, and Invest!

Here at Entrust Capital Funding, we are supporters of investors and want to help them succeed in their endeavors. It’s why we make the process easy and pain free. We know the opportunities that lie in the world of real estate investment and if you have been thinking about taking the leap, why not do it now! Remember, if you focus and take action, what you can achieve is truly remarkable. We are here to help you get the funds you need to get started. Call us today. 

house flips

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.

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.