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An Inside Peek into 2019 and the State of the House Flip

By | el paso texas hard money lenders | No Comments

It was just over a year ago that WalletHub released its top list of cities deemed the best places for house flipping in the U.S. The top of that list surprised many—as it is not an often cited housing market and comes from one of Texas smallest cities— but it didn’t surprise us. The border town of El Paso was named the best city for house flipping in Texas. This means it beats out other hot markets like San Antonio and Dallas.

The rankings were based on a few criteria and measured from 22 key indicators including market potential, remodeling costs, and quality of life. El Paso scored 95, 9, and 48 in the above.

The El Paso Housing Market Today

The median home value in El Paso is $126,700. This is significantly lower from other cities in Texas. The median home value in a San Antonio zip code, for example, is listed at $278,300. This is a significant difference and makes house flipping in El Paso a much more accessible endeavor. The values of El Paso homes have gone up approximately 4.5% over the past year and seem to be rising. The median price of homes in El Paso is about 1$68,250 compared to San Antonio is $285,350.

El Paso’s Growth

El Paso is a city with a growing population and in a September 2018 report, was said to be enjoying a healthy buyer’s market. This means there is a lot of opportunity for people to snatch up valuable properties in areas being remodeled or rebuilt and take advantage of the growing market. In 2015, El Paso’s population was 676,391 in 2018 the latest census data showed it was closer to 683, 577 in 2017. This shows a considerable increase in the past couple of years and means that many more people moving here are in the market to purchase a new home.

Tips Before Jumping In

So if you’ve been thinking about house flipping for some time, there are probably hundreds of questions, doubts, and trepidations that cross your mind. Below are some initial things to keep in mind before you jump in:

  • Understand risk vs. reward.
  • Research the neighborhood the house is on, the side of town, schools, etc.
  • Take notice of the renovations that might be needed and do a little preliminary research on the cost of those particular renovations, contractors in the area, etc.
  • Avoid homes that require expansive repairs like mold, asbestos, foundation problems, etc.
  • Learn the basics of the market. You don’t have to become a real estate analyst, but looking at a few trends, some patterns, or some information on your particular market can inform you of some important aspects.

And Go With the Right Lender

Entrust Capital Funding has the lowest interest rate in the city. As a part of a cohort of real estate companies, we know the market well and know that the market is hot for buyers. A hard money lender doesn’t check your credit or take weeks on end to happen. We can get you the loan asap, so you can move on the property you want and start the profit clock.

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.