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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.

 

Become a Profitable Investor With Real Estate Investment Loans

By | hard money loans, real estate investment loans, Uncategorized | No Comments

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.

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Hard money lending can be a success to your future home buying.

By | Hard Money Lending | No Comments

Buying a home is one of the biggest purchases you will ever make. In today’s Real Estate there are so many stalled out projects due to insufficient financing, Dutton states only about 80% are complete while the other 20% suffer from improper funding. What can you do when you can’t come up with the money or get a loan from a major lender? These loans are secured by actual property versus credit. It’s hard to fathom all the hard work you can possibly put into home buying, especially cash spent, just to lose it in the end. Let’s face it buying a new home can be scary, but not as scary as knowing your credit score isn’t up to par with bank lenders as  well as not having the money to even start searching. Boch suggests making a minimum of 10%, if more is possible, the better. What are your choices? Hard money lending. Corey Dutton from Salt Lake City, Utah gives us three reason why Investors use hard money loans.

Speed of funding – Why wait for a bank loan? Hard money lending may be one of your only options, or buying cash.

Rehab Opportunities — Most real estate with value is in purchasing properties that need work and most banks don’t lend to these type of properties.

Bad Credit No credit – As we all know, bad credit won’t get us a loan with a bank. Hard money lenders aren’t really concerned about that. Their focus is the property being used as collateral.
recent interview with CSNBC and Self-made millionaire and financial adviser David Bach says, “Buying a home is  an escalator to wealth. I first bought a home in San Francisco. It skyrocketed in price. I moved to New York and bought another home. It skyrocketed in price. My net worth has gone up millions and millions of dollars, simply because I’ve lived.” He lived in the sense he took chances. Buy a home today and get your Hard Money Loan with Entrust.