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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.

Mature man working from contemporary home

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.