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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.

How Investment Meets Stability: Fighting for Your Financial Future With Real Estate

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There is a reason why countless television shows deal with real estate investing, flipping houses, and interior design. That reason is that regardless of the economic state of the country, people will always need homes. The housing industry, while suffering its ebbs and flows, always has some kind of demand, as people grow older, get careers, move out, and begin their own families in their own homes.  This is why real estate investing can always hold big opportunities for wealth building.

Many Americans look not for exorbitant riches and million dollar homes. Many people today are just looking for a way to establish a stable financial future with plenty of assets and security that gives them peace of mind for their retirement, their children, and grandchildren. And therein lies the magic word: stability. Real estate investing can be a great way to achieve some of this stability when handled properly and with care.

Real Estate Investment Provides Safer Returns

There are several ways to invest your money in an attempt to secure your financial future. One of these ways is investing in the stock market. This is one way that people build their wealth, but it comes with a lot of unknowns, headaches, and volatility. Stock investing can take advantage of a growing economy but can quickly tumble down as soon as there consumer and investor confidence plunges or some unpredictable change occurs.  Real estate investing still sees changes in the market, but it is far less volatile than the stock market. For investors, this means that even when an economy suffers, the likelihood that the market will rise again means higher returns.

Diversification Leads to Increased Stability

Don’t put all your eggs in one basket. This advice is valuable when it comes to your finances. Real estate investment is a lot more dynamic, as it can happen in several different ways. You can purchase a property to flip or rent. If you purchase and flip a property and then put it for rent, you can collect what is called passive income. If you purchase a property to flip and sell, you are making a one time profit.  Any financial planner will tell you that diversifying your portfolio is a great way to spread the risk and purchasing property can help to do that. Of course, it depends on your financial goals. Hard money loans are a great way to get in the game if you’ve had some trouble with your credit history in the past. These types of loans, of course, do not pay attention to your credit history but are more concerned with the value of the property itself.

Land and Assets Will Always Have Some Value

Even in bad economic times there is always value in your land and home. The value doesn’t just disappear the way that stocks often can.  That investment you make is worth something. Therefore, people are always looking to purchase homes and flipping houses is a great way to capitalize on that. Let’s say you buy a property that at first glance is not worth much. You pick it up. You fix it up, remodel it, repaint it, do the quick fixes necessary to make it a desirable residence and it suddenly becomes easier to sell. Someone is looking for that house and when they find it, you will profit.

Achieve Financial Stability With the Right Investment Strategy

Here at Entrust Capital Funding,  we can help you reach financial stability with hard money loans. If you’re looking to start building some wealth and not sure where to begin, real estate investment can be a great way to jump into the profit-making possibilities out there today. Bad credit score? No problem. We got you covered. Entrust Capital Funding has the lowest interest rate in the city.

 

How To Maximize Your Profits as a House Flipper

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

 

Thinking about flipping homes? Rehabbing a home can be an extremely lucrative pursuit if it is approached with caution, understanding, and a little bit of insight knowledge into the inner workings of the industry. Your first flip might seem like an insurmountable task but arming yourself with a few key tips will really make a difference to the outcome. It can certainly help you produce the kind of profit you’re looking for. Let’s look at a few wise words to consider.

Think Carefully About Remodeling Choices

The fix and flip is often seen on television as a great massive overhaul of the home’s interior and exterior designs, bathrooms, kitchen, etc. This makes for great entertainment, as the full transformation of a home is something to witness. However, when dealing with a flip in real life, it is important to note that over remodeling it might not necessarily bring more profits to you as the flipper. As Forbes magazine points out, remodeling takes a lot more time, money, and resources. Embarking on complex remodels will often open the doors for more issues to arise.

  • Tearing into walls can lead to more problems. When digging too deep you might run into a problem you didn’t bargain for. Also, a mistake by the contractor can extend the timeline.
  • More time more money. Another reason why spending an extended amount of time on flips is not advisable is because the more time you spend on it the more money you will be spending and possibly losing.
  • The changing market can make a difference. If you hold on to a house for too long, the market may change and alter your original calculations, pricing, etc.
  • Keep it simple. Experienced house flippers have said that keeping the repairs and remodels simple is the best way to go. Completely changing the bathroom or kitchen will not necessarily pay off at the end. Keeping the changes to what is necessary is a wiser investment choice in a lot of cases.

Some possible risks

There is no shortage of date or factors you can consider when flipping a home. This doesn’t mean you have to fully learn the industry but only be aware of certain things that can impact the way you approach your flip, how much your renovate, how much you spend on repairs, and how quickly you get it back into the market.

Consider market trends. You don’t have to be a real estate expert to look for some big patterns on market trends. You can check in with a multitude of sources —like realtor.com, Joint Center for Housing Studies of Harvard University, neighborhood price ranges, local MLS statistics, census.gov, even social media— for updates on the market. This will give you some insight into demographic shifts that can impact the price of the property you are looking to buy.

Look at changing interest rates. The interest rates on home loans are always important to consider. The interest rates might tell you something about the prospective buyers for your planned property.

Valuation. This is a critical part of the flipping process. Carefully considering and estimating the price of the finished product.  What is the After Repair Value (ARV)? Get a good idea of what the selling price will be before you make an offer to purchase the property.

Choose contractors wisely. In a previous post, we talked about the importance of choosing the right contractors. Doing some research, weighing your options, and calling around, will go a long way when it comes to choosing a reputable and trustworthy contractor.

Ready, Set, Flip!

ATTOM, the real estate data company, reported the average profit on house flips can be up to $65,520 in the second quarter of 2018. Of course the number varies on whether you are doing a lower price range flip or a high-end flip.  If you’re ready to embark on the flipping journey, a hard money loan might be the solution for you to get started fast. We don’t do credit checks and you can hit the ground running asap. Give Entrust Capital Funding a call today.

The Era of Remodeling: Why People Love Home Renovation

By | hard money loans, home renovation | No Comments

 

You might not be aware of this, but there are approximately (maybe more) twenty television shows dedicated to real estate renovation and house flips. People love to watch home transformations. There is something about watching as a house goes from a dilapidated, rotting, termite-infested, asbestos-painted, poorly insulated with rusted appliances-home to one that is rescued from the real estate underworld, brought back from the dead, and soon glimmers with new life. All of this achieved through hard labor, clever remodeling and construction, decoration, and interior design. There is something that draws people to this particular venture and it might just be far more ingrained in our nature and our current culture than we think.

There is practically an entire internet genre dedicated to DIY home projects. Yet, it is not just the rewards that keep people coming back to home renovation. As CNBC reported, house flipping is at record highs. In 2017 there were more than 207, 000 house flipped. A house flip is defined as any home bought and sold in any 12 month period. You buy a property, work to renovate it, and sell it for a profit.  

Flipping a home will usually involve a certain amount of renovation and many of these shows include flipping as part of the “plot.” In fact, that’s part of the appeal—people love to see something infused with new life and they love to see the profit that comes from it. But what is it that makes us so attracted to home renovation shows? Why have home projects become such a popular pastime for homeowners and weekend warriors everywhere?

There is Inherent Romance in a Beautiful Home

There is simply something romantic in a beautiful home.  Older homes especially have this ingrained romantic quality. Houses tell stories and an old home infused with new life tells a great story of rebirth. There is something wholesome about the labor involved in restoring repainting the walls or fixing the roof. At the same time, when people sacrifice so much for their home, the maintenance and restoration of it have more than economic implications; there is sentimental value, there is a personal and emotional reward.

Economic Reasons

It wasn’t that long ago that the country went through a great recession that presented a lot of challenges to the real estate industry. In many cases, people could not afford to buy new homes or were short on cash to do their home repairs. During this time people had to resort to maintaining their homes on their own and in doing so discovered a whole new world of adventure exciting projects.

The Internet

You can type in anything from installing bathroom tile to repainting the bedroom and you will find a plethora of DIY videos, blogs, and tips. The advent of the internet provided people with access to amazing resources. Hence the rise of the self-renovation and the DIY craze.

The Drama of Transformation

People love to see progress and overcoming challenges. Every single one of these shows is usually presented with challenges or unforeseen problems along the way to the renovation. In fact, if you’ve ever tried to do anything on a house, you know that you’re likely to run into problems.  People relate to this.

There is a Reward at the End

Human beings are hardwired to seek rewards. We also admire people with vision and renovating a house requires technical knowledge and creative vision. The bottom line is that home renovation has become a big cultural topic. People love to fix up their homes and they love to rehab homes and flip for a profit. Why? Because everyone loves a beautiful home. The real estate industry is ripe with opportunities and renovating and flipping homes is just a part of it. With new lending opportunities, the industry is now open to everyone interested in making money off of real estate. As El Paso grows and sees more and more for sale homes and interested buyers, the potential to make money expands too. Working with hard money lenders is just one way to do it. Don’t know what that is? Call Entrust Capital for free information.