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House flipper perfecting the art of flipping houses by literally flipping houses around

Terms You Should Know in the House Flipping Industry

By | el paso texas hard money lenders, hard money loans | No Comments

Real estate is a great industry to work in; it’s stable, and allows you to meet new people, take risks, and expand and grow to an almost endless degree. If you want to get started in this industry, you may want to learn some of the most common terms so you won’t get lost or confused doing your own research. 

House Flipping Terms

The house flipping industry has a lot of terms that are unique to the industry and are brought up a ton from experienced home flippers. Here as some of the most common that you’ll see and hear regularly:

  • Reno project – This one is pretty simple—this refers to a home that will need a renovation before it is sold on the market. 
  • Wholesaler – A wholesaler is a person who buys homes as-is and will sell them to another flipper. They don’t waste time renovating or selling a home to someone who will actually live in it. 
  • Bene – Bene is short for beneficiary, and that is typically a bank or lender that has ownership of a foreclosed property. 
  • Distressed property – A distressed property is one that is late on payments, and is in danger of foreclosure. 
  • NOD – NOD stands for notice of default, and is the point where a house is due to be foreclosed on. You can often get a list of these properties in advance, but it’ll cost you. 
  • Dollhouse and Haircut – Dollhouse and haircut just mean that homes are in pretty good shape, and need minimal renovation to be ready for the market.
  • LTV – LTV is just the Loan-to-Value ratio, meaning the difference in the loan and appraised value of the home. 
  • ARV – ARV stands for After Repair Value, and it’s just the value you of your home after renovations. This is where your profit comes in, so you need to have an idea of this number before you renovate.
  • Hard-money lender – Oh wait, that’s us! A hard-money lender is a private lender, meaning the money comes from private investors, and not from a bank. That means that you can get your money fast, and go on flipping or renovating your house much faster than a traditional lender. 

Contact Entrust Capital Funding, Today!

When you’re in need of a hard loan that can get you the house or renovation project with the lowest interest rates in town, call Entrust Capital. Let us finance your real estate dreams today!

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.