Investment Service — Private Money Lenders for Real Estate Projects
Loans for Real Estate Investors in El Paso
Entrust Capital Funding helps local investors grow their assets every year. As a private lending company, we offer the lowest interest rates in the area. Real Estate investing is a growing venture for investors looking to maximize their wealth growth in a less volatile market. Also known as hard money loans, our loans for real estate investors use funds from private investors, instead of a bank, so the money is on hand and ready to go. There are many draws and benefits to this kind of investing. Entrust Capital Funding can get you started with real estate investing within two weeks of filling out your application.
At the same time, as hard money lenders, we are not so much concerned with your credit score or debt history; we base our loan decisions on the value of the property that is being bought. The property functions as a type of collateral, so once we establish its value we can move forward with getting the funds. Unlike many other lenders in the El Paso area, however, we have the money at hand so we make the process fast, easy, and reliable.
The Loan Process
When it comes to loans for real estate investors, the process is simple. There is the application, assessing the value or repairs needed, the closing, the disbursement of funds in installments, and the money-making begins. Here is a closer look at our entire process from start to finish:
- Application. Interested parties begin by filling out an application on our website. Print the application and mail or email it directly to us. We review the application within 24 hours and return your call almost immediately.
- After Repair Value. This is when we conduct a market value analysis on the property. We look at pertinent data—like recent sales in the area—to help value the property. With our access to Multiple Listing Service, we can pull comprehensive market data to value the property for a good estimate of what it will sell. Once we establish that price, Entrust is able to lend 70% of that After Repair Value (ARV) at closing. For example, if the property is said to be worth $100,000 we will loan 70% of that ARV.
- Site Visit. Once we have conducted the ARV Analysis, we will issue a Pre-Approval letter. This approval letter is subject to a site visit by Entrust Capital Funding. At this time, we will begin by examining the home. We will revise our evaluation, either up or down, due to factors like the neighborhood, condition of the property, unknown features etc. We will also look at the property and make an assessment on how much we feel the repairs will cost. After the site visit, we will issue a Final Approval Letter, in which the final amount we will bring to closing, as well as how much we will keep in escrow for repairs.
- Closing. The only upfront costs associated with a hard money loan from Entrust Capital Funding is $400.00 to open up the title and draw up the loan documents. Entrust Capital Funding has the ability to close files within 7 days, as we have the funds readily available, as long as the title is clear. All closing costs are the responsibility of the borrower.
- Renovation. Once the property closes and funds, the borrower can begin the work of renovating the property. Entrust Capital Funding holds funds for repairs and will distribute those funds on a predetermined repair draw schedule. For example, if the property requires $10,000 in repairs, we would structure our draws as $2,000 for exterior renovation and $8,000 for interior repairs. Once you feel that the exterior repairs are done, contact us and we will go and inspect the renovations. We will not tell you HOW to renovate the property, but we will make sure all of the renovations are done completely and to code. If we see the exterior is completed, we will disburse the $2,000 to you. Once the interior repairs are done and we have inspected those repairs, we will issue the final draw of $8,000. Repair draws and schedule are subject and depend on the property.
- Sell & Pay Off. Once all the renovations have been completed, put the property on the market and sell! You will still be responsible for the payments on the property until the time that it sells. If it does not sell before the maturity date, which is one year unless otherwise stated in the loan documents, then you will need to either pay off the loan or refinance at that time. If the property sells, pay off your loan and we can work on the next deal!
There are no specific requirements for applying and/or qualifying for a hard money loan. Real estate investment loans really depend on the property. This opens up avenues for investors that may not have a pristine credit score. Our process is the same and simple throughout. We don’t do credit checks or evaluate your debt history. Instead, we base ourselves on the value of the property.
Loans for Real Estate Investors from Entrust Capital Funding
Loans for real estate investors are a fantastic opportunity to begin making money in a way you never thought possible. All it takes is the right property and the right lender. Hard money is the way to the top. El Paso is a thriving real estate market with a plethora of investment opportunities waiting to be seized. Connect with us today to learn more!