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Get After Your Flipping Dreams — 4 Tips for Successful House Flippers & Real Estate Investors

By | El Paso, home renovation | No Comments

Flipping homes for money does not happen overnight. People make good money flipping homes every day in this country, but every one of those people had to do their research, take some risks, and understand the different lending options available before they jumped into it. The footwork put in before the deal is made will serve you well as you navigate the uncertain waters of real estate investing. 

Buying a home and flipping it, is not for the faint of heart. So if you’re thinking about testing the waters of home flipping, read our introductory guide on how to get started. 

Is Real Estate Investing for Me?

Let’s put it this way, real estate investing is not the type of thing people stumble into without any interest in it. Most successful house flippers possess a couple of natural attributes that serve them well in the home selling business. Some might describe it as follows:

  • A natural hustle: If you’re one of those people that doesn’t have to be told what needs to be done and you just go out there and get after it, this might be for you. Selling homes is a hustle and you need the inner spark to get it done. 
  • An eye for a good deal: Some people are good at identifying a potential deal. Whether that’s getting a household item or the best deal on a car. 
  • A mind that’s comfortable with numbers. Real estate investing will have some surprises and some unexpected costs, but a successful investor knows how to crunch the numbers and get accurate and precise estimates on costs.
  • A cursory understanding of the market. While you don’t have to be a real estate expert, knowing the market that you’ll be working in will make it easier for you to spot a good deal or a bad one. Having an eye for potential good investments serves a house flipper well. This includes knowing neighborhoods, upcoming city renovations, developments, etc. 
  • Have a solid and fundamental understanding of home repairs or know someone that does. Being able to spot a good contractor can be a lifesaver. You don’t have to be the world’s greatest handyman, but having some understanding of home repairs or some experience hiring trusted contractors puts you in a better place. It also makes it easier for you to spot needed repairs on a possible flip. 

4 Tips Every House Flipper Should Know 

There is no golden book or Holy Bible of house flipping, but there is a lot of tried and true advice out there from people that have learned things the hard way. We have written a lot about finding the right flip and breaking through the real estate business, but there are several other key points to consider. 

Here’s some sound advice to keep you on the right track. 

#1 Arm yourself with knowledge—consider a real estate license

While there is no set requirement to become a house flipper, getting a real estate license is a good place to start. Going through the process teaches you to break through the real estate lingo, learn important terms, regulations, forms, HOAs, etc. You make connections in the community. You also get access to the MLS to better gauge prices. Also, going through the classes and instruction will solidify your commitment to the endeavor.

If you want to jump in right away, contact a person you trust and know is a solid real estate agent. Perhaps you have good connections already. Use them.  

#2 Establish good connections with reliable contractors

You don’t want to wait until you have signed on a house to start looking for your contractors. If you know the market, do your research on well-vetted contractors and workers. Even if you plan on doing a lot of the work yourself, you’ll likely need to hire a licensed contractor for a job or two. Establish connections with them before so that you have a go-to and know who you can trust. 

#3 Work the math— flipping homes is a numbers game

Before jumping on a deal, make sure that you know how to work some numbers and accurately estimate the cost of certain repairs. For example, putting in new floors. Make sure to factor in the cost of all materials and labor. Don’t forget to factor in taxes, insurance, mortgage payments, real estate commissions, and other marketing costs. 

#4 Don’t over-improve the home — this is not your dream home

One common mistake some beginning flippers do is they try to do too much to a house. The fact is that even in a seller’s market, you’re not going to get a home for more than the market is willing to pay. This has a lot to do with the neighborhood and the home itself. Remember that you’re not working on your dream home. You’re just working to get the home sold without overspending on repairs. For people with vision, it’s almost a creative experience imagining what a house can become. They easily get carried away, especially at first. Be frugal, be cautious with what you spend on repairs. 

Get the Right Loan Fast and Kickstart Your Flipping Dreams!

We didn’t even get to the money part. The kind of loans that you get are a central part of the house flipping business. Here at Entrust Capital Funding, we offer reliable hard money loans so that people don’t have to waste time going through banks. 

Ready to get your hands on some real estate investment loans and opportunities. We want to hear from you. Call Entrust Capital today

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Finding the Right Flip: What To Look for In an Investment Property 

By | El Paso, Home Buying | No Comments

So, getting a real estate investment loan in El Paso is easier than you thought. What now? So you look for the next opportunity that calls your name. And right now the El Paso real estate market is pretty active. So, what do you look for when searching for the next best home to flip? 

There is no single correct answer. After all, being a real estate investor is all about vision, creativity, and what we like to call that ‘inner hustle.’ It’s not a slow man’s game. When it comes to real estate flips, you have to move quickly but strategically, take risks but weigh your options, know the ground game, understand the market, have the right team of contractors, and move swiftly towards the end goal. Many of the United States’ home sales were a result of house flips. According to Investopedia in 2019, about 6.2% of all home sales in the United States were house flips

The Ultimate Checklist for the Best Flip — Keep These 5 Tips in Mind 

Just because a home looks a little run down and is calling your name doesn’t mean it’s the right one for you. Television makes house flipping look like a walk in the park. There are plenty of homes out there that could use some renovations, but your best flip will meet one or some of these criteria:

  1. Make sure the neighborhood has potential. When someone buys a home, they are likely buying more than just the lot and structure. They are committing to the neighborhood and locality in which it sits. A lot of time a neighborhood’s popularity is related to local schools, nearby amenities, or surrounding parks. Finding one of the smaller homes in the big neighborhoods can prove a big investment. That’s because the high value of the neighboring properties makes the smaller home more accessible to a larger buyer pool. 
  2. See beyond the lack of curb appeal. You are a house flipper. Think like one. That means seeing what something could be and not what it is. It’s all about finding the quickest road (no shortcuts) to the destination— i.e. looking at how to get to a desirable home from the conditions of the home you see. Is it going to take landscaping? A new driveway? A new front door and a couple of trees? Etc etc. A renovation doesn’t mean you have to install a whole new floor or do a full kitchen remodel. It might mean being strategic with these renovation options and using what you have and working with it.  
  3. Don’t forget to take a quick look at the neighbors. Find a great house in a good neighborhood, but have a crazy cat lady as a neighbor? This might be a problem. Eccentric is not always a great quality in the real estate market, so if you find a home that appears to have neighbors that are on the fringe and are keeping bees, or have ten chickens, goats, and a mini pig, take that into consideration. 
  4. Stay away from busy streets or heavily trafficked streets. A lot of really nice older homes will often be located in unfortunate subdivisions that were somehow chewed up by modern development. A home that sits right next to a busy street that sees a lot of traffic and noise, will always sit on the market for a long time. Consider staying away from these properties unless there are other characteristics that outweigh this downfall. 

Three Quick Warnings: Stay Away from These Common Mistakes 

Just like there is some general advice to follow, there are also a few mistakes that can be avoided with just a little background information. The 70% rule known to a lot of real estate investors states that an investor should pay no more than 70% of the after repair value (ARV) of a property minus the repairs needed. 

Mistake #1: Belly flop into the first deal without doing your homework. Research financing options and make sure you know which one is right for you and your circumstances. Remember to factor in the costs of repairs, as it is the only way to make sure you’ll make a profit. 

Mistake #2: Assuming that it is a part-time endeavor. It can be for experienced real estate investors. If you are just starting out, it might not be the best approach to do this as your side-gig. At least, not for your first property. Finding the right property, researching value and market, plus the acquisition, take time. That is not counting the time it will take supervising contractors. 

Mistake #3: Losing patience and jumping the gun. This piece of advice can apply to many endeavors. Real estate takes patience and some prowling. Get familiar with the kind of property you want to flip and jump on it when the time is right. 

Found the Right Property? Now Get a Quick Real Estate Investment Loan and Get to Flipping 

Getting a hard money loan will be faster, easier, and will not present obstacles to the acquisition of your right property. Call Entrust Capital and get the money you need to flip today. 

Want to find out more about hard money loans for real estate investment? Call Entrust Capital in El Paso and learn more. 

A Secure Investment: Real Estate and House Flips During a Time of Crisis 

By | Home Buying | No Comments

Young business entrepreneur woman working at home while having breakfastAccording to a recent Gallup poll, both high-income and low-income Americans have lost faith in their stocks. Interest in stocks and mutual investing fell dramatically in the first quarter of 2020. Of course, these are unprecedented times and the market has certainly shown it.

Thirty-five percent of Americans say real estate is their favored long-term investment. This has been the case since 2013 and remained so especially during the time of the pandemic. The reason for this can be twofold: one, real estate is tangible, and even during a pandemic, it is still there. You can see it. Feel it. Touch it. Two, the markets will always come back, at some point or another, but they do come back, and when they do, people will always need a place to live. 

Tips For Preparing For a Recession as an Investor

We don’t actually know what is going to happen to the markets as the country begins to open up. There are plenty of analysts and market gurus projecting their predictions. Some claim that there is likely to be a recession coming out of this. That may or may not be the case. In fact, it may be that the markets bounce back as people are eager and able to get back to work immediately. After all, we’ve never had a self-imposed economic shut down before. Yet, as a real estate investor, you always want to be prepared and have a few things in mind in case a recession does hit. Here are some things to keep in mind:

  • If you have properties or assets, you might consider selling some so that you have more liquidity. 
  • If you are prepared, consider making cash offers on properties likely to go back up quickly, that is, places with desirable schools, good neighborhoods, etc. 
  • If you have the capital, buy properties that you see have potential. Many real estate investors, after the great recession of 2008, figured out that they could have bought more properties since prices went insanely low. 
  • If you’re a house flipper, you can work on building relationships and using several lenders, so you have trusting relationships before a recession hits. 

Well, that still doesn’t answer the million-dollar question directly. Does that make now a good time to put in an offer on a property? 

The truth is, there is likely no straightforward answer to that question. The answer will largely depend on what you plan to do with the home, your current situation, your other properties, etc.

It might very well be a good time to buy an investment property if there is inventory at a good price. The challenge is, of course, that there were a lot of pauses put on the home selling process, that inventory is quite low in many American cities, including El Paso. 

How the Stay at Home Orders Upended the Home Buying Process 

Many companies that specialize in buying or selling homes have put a pause on operations. New listings, according to Market Watch, were down 44% in April compared with the previous year. This translates to about 189,000 fewer homes on the market than during the same period in 2019. New home construction was also halted, as many builders became wary about the state of the housing industry. 

So there might be a lower amount of inventory due to these reasons:

  • Seller uncertainty 
  • Real estate companies halting services
  • The rapid rise of unemployment and sellers pulling their listings
  • Lack of foreclosure homes. 

All this being said, it doesn’t mean that it’s necessarily a bad time to buy an investment property. A deal is a deal. And if a deal pops up in a market that you, as an investor, see as a good investment, it is the right time to buy. The returns will come later, as the market picks up. In fact, there is already data suggesting that buyers are returning to the markets and slowly things are picking up. 

It’s important to keep in mind that all of the above reasons are only temporary. Seller uncertainty tends to fade as the market begins to reopen and states go back to normal. Texas is one of the states that is opening the fastest after coronavirus. And while El Paso seems to be slower than the rest of the Lone Star State, there are still plenty of listings in the El Paso market. That being said, Texas is a robust state with a strong economy and a business-friendly environment. This will likely mean a quicker recovery. 

Get Confident, Look for a Deal, and Be Ready to Invest For Your Future

Every investor knows that investing—whether it be real estate or stocks—always involves some risk mitigation. Uncertain times, certainly call for more attention to detail and keeping your eye on the markets. That doesn’t mean, however, that it is not a ripe time to capitalize on the market downturn. Finding a good deal means that your returns will likely increase as the market picks back up. Here at Entrust Capital Funding, we encourage investors to go with their gut and use their entrepreneurial spirit to seek the right deal for the best price. If you’re looking for some funding to invest in that diamond in the rough, give us a call today.

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Benefits of House Flipping as a Profession

By | El Paso, hard money loans | No Comments

House flipping, as a profession, can be pretty rewarding and demanding. Many people in the industry simply love real estate, or were tired of living in a 9 to 5 corporate environment. It has become more popular than ever before, with shows and social media accounts chronicling the lives of house flippers reaching millions of people a day. However, some people still have too little information on the industry and remain skeptical. If you are on the fence, check out just some of the benefits of house flipping below.

  1. Take Control of Your Time – When you flip houses for a living, you are your own boss. You don’t have to have lunch right at 12 or have that report done by Monday; you decide how much you want to do, when you want to do it, and how. 
  2. Financial Potential – As you may already know, there is a lot of money to be made in real estate. After all, for most people, the majority of their net worth is tied into their home. This can be daunting for some people since they have never had to deal with such large amounts of money before. But for motivated individuals, the potential for money-making in the house flipping business is as big as their desire and drive.
  3. Networking – Flipping houses requires talking to people, and we mean a lot. Marketing, getting loans, getting info on neighborhoods, and all the other aspects of house flipping require communication. If you love talking to people or want to branch out, this is a great industry to be in.

Pairing Your Dream With The Right Lender

House flipping can be made easy and profitable with the right lender. Here at Entrust Capital Funding, we pride ourselves on being able to offer the best loans for home flippers of all types. Contact us today to see how we can get your dream off the ground. 

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.