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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. 

House flipper perfecting the art of flipping houses by literally flipping houses around

Terms You Should Know in the House Flipping Industry

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

Real estate is a great industry to work in; it’s stable, and allows you to meet new people, take risks, and expand and grow to an almost endless degree. If you want to get started in this industry, you may want to learn some of the most common terms so you won’t get lost or confused doing your own research. 

House Flipping Terms

The house flipping industry has a lot of terms that are unique to the industry and are brought up a ton from experienced home flippers. Here as some of the most common that you’ll see and hear regularly:

  • Reno project – This one is pretty simple—this refers to a home that will need a renovation before it is sold on the market. 
  • Wholesaler – A wholesaler is a person who buys homes as-is and will sell them to another flipper. They don’t waste time renovating or selling a home to someone who will actually live in it. 
  • Bene – Bene is short for beneficiary, and that is typically a bank or lender that has ownership of a foreclosed property. 
  • Distressed property – A distressed property is one that is late on payments, and is in danger of foreclosure. 
  • NOD – NOD stands for notice of default, and is the point where a house is due to be foreclosed on. You can often get a list of these properties in advance, but it’ll cost you. 
  • Dollhouse and Haircut – Dollhouse and haircut just mean that homes are in pretty good shape, and need minimal renovation to be ready for the market.
  • LTV – LTV is just the Loan-to-Value ratio, meaning the difference in the loan and appraised value of the home. 
  • ARV – ARV stands for After Repair Value, and it’s just the value you of your home after renovations. This is where your profit comes in, so you need to have an idea of this number before you renovate.
  • Hard-money lender – Oh wait, that’s us! A hard-money lender is a private lender, meaning the money comes from private investors, and not from a bank. That means that you can get your money fast, and go on flipping or renovating your house much faster than a traditional lender. 

Contact Entrust Capital Funding, Today!

When you’re in need of a hard loan that can get you the house or renovation project with the lowest interest rates in town, call Entrust Capital. Let us finance your real estate dreams today!

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

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

 

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.

 

Tips for Hiring the Best Contractor for Your Flip Remodel

By | el paso texas hard money lenders, Hard Money Lending | No Comments

House flipping has become a lucrative business in the past couple of years, as television shows and success stories have hit the mainstream. There is a lot of profit potential to be had in the art of flipping houses, but arming yourself with knowledge and advice can go a long way in a business that has little room for error. When you purchase a home with the intent of reselling it, chances are there will be some remodeling and repairs involved before you can put the house back on the market for a profit. For this month’s post, we thought we’d take a look at a crucially important aspect of house flipping.

If you ask any house flipper what one of the most difficult parts of the job is, they will tell you that a big part is being able to hire the right contractors. It is inevitable that a house flip will require some renovations or repairs, some more complex than others, but quality work is essential for a successful flip. Some people take a more ‘hands-off’ approach to a flip and some like to be managing all the subcontractors involved. Weigh your options as to what you want and prefer to do. Hiring a general contractor means that any subcontracting goes through the main company and this is important to note.

Below are some things to consider when hiring a contractor to perform your repairs.

Start with a plan.

There are many ways to spruce up a house for a flip. Some repairs are absolutely necessary, like fixing broken pipes or replacing roof shingles. Others are more aesthetic, like putting in a new vanity in the bathroom or redoing the kitchen cabinets. Before you begin getting any estimates or calling around, have a detailed and prioritized plan about what needs to be done.

Choose the right company for the right job.

Make sure that the contractors you are hiring are specialized and/or experienced in the particular work you are needing. Just because a company is great in redoing kitchens, doesn’t mean they can put in an addition to the home or fix the bathroom with the same rate of quality.

Don’t go with the first one.  

You don’t always have to go with the first contractor you call. Interview at least three different contractors, look at their past work, get a sense for their work ethic, their reputation, and their pricing.

Budget for surprises.

It is almost expected that once work begins on a house, surprises are inevitable. You are likely to find a roof leak here and there or rotten flooring underneath a carpet, etc.

Sign a clear and detailed contract.

Make sure that all the work that is being done is in writing and clearly detailed in a contract. This includes deadlines, prices, and a detailed description of the main job being performed.

Check reviews.

While online reviews will not tell you everything and you don’t want to rely on it as your main source of information, it can be an important way to get a sense for their work. Review sites like Angie’s List and Yelp might offer a way to get some reliable reviews.

If house flipping or selling rehab homes is something you are interested in doing for a longer period of time,  then you can compound your knowledge as you go. After the first or second home, for example, you’ll know the materials, parts, and repairs that you are more likely to do and will have worked with some good contractors that you can reuse.

Get Started With House Flipping Today

The first step to working in the business of buying, repairing, and selling houses is starting with the capital to do it. Entrust Capital Funding will provide real estate investors with reliable loans to get the job done. Our process is fast and easy. We also offer the lowest interest rates in the area. In addition, we have trusted partners we have worked with in the past that can provide reliable contracting and labor. Call us today and get started!!