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Ten Important Tips for Your 2019 House Flip

By | hard money loans, Uncategorized | No Comments

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.

The Art of the Flip: Use Hard Money Loans To Flip Houses

By | el paso texas hard money lenders, Hard Money Lending | No Comments

You’ve heard the term. You’ve seen ads on YouTube and television about it. Maybe you’ve even seen the show Flip this House on A&E or Flip or Flop on HGTV. You’ve heard people talk about getting rich, but what is the big deal with hard money loans anyway? Thousands of real estate investors across the country are discovering the real meaning of making money by buying and flipping homes. Flipping is a term that refers to buying a property with the intent of quickly remodeling and/or reselling for a profit. It’s a tricky business, but when partnered with the right lenders and handled correctly, it can create lucrative opportunities for money making. Use hard money and learn the art of the flip.

So where do I begin? That is the question. Hard money loans don’t require a credit check and are therefore much faster to get. This is because the money is coming from private investors ready to see it go to good use and see a return on it. So once you’ve got a loan to work with, you want to get started. Below are some tips to get started on the art of the flip.

#1 Learn. Get to know the market. Read a few books or attend a few courses. Getting a sense for some basic market trends, jargon, and concepts will serve you well in the long run and give you a foundation through which to build the instincts to make good decisions.

#2  Take it easy. Don’t dive into anything and start small. If you’re new to the business, don’t go for the most expensive luxury home. Try a small single family home or a low-cost property without too many complex repairs. This will whet your appetite and help you experience the process without tremendous risk.

# 3 Trust your construction crew. You will be making repairs and renovations to the property you plan to flip so you need to have people that you trust. Once the clock is ticking is not the time to experiment with contractors and new people. Go with someone you are familiar with and can trust to get the job done.

#4 Don’t over improve. Yes, this is a common mistake. Many first time flippers will spend way too much money on repairs that may not have been needing in the first place. Be cautious about what you improve or fix and get a good sense for what will actually make a difference when it comes time to sell.  Some repairs will have to be made based on the inspection and appraisal, but others might be up to you and there are strategic ways to approach this.

Television shows like Flip This House have seen a tremendous amount of success— despite the stars’ often questionable character— because people see the potential and opportunity for themselves. In reality, there is plenty of opportunity out there for people that are interested in making money and learning a new art. Flipping is one thing, but without the right lender and the help of trusted real estate agents and real estate experts, you might find yourself disoriented and having lost your investment. When it comes to hard money loans in El Paso, there are very few trusted options. Entrust Capital Funding started in the business as a way to help people improve their wealth and further train real estate investors and agents.