Web
Analytics
Tag

investing Archives - Entrust Capital Funding

Real Estate Investing Forecast of 2021 and How To Move Forward 

By | El Paso, real estate investment loans | No Comments

Single family house on pile of money. Concept of real estate.The low mortgage interest rates of 2020 continue to be all the rage. The interest rates in the second half of the year went as low as 2.7% and this led many prospective buyers, to make the leap and start searching for their home. The economy also took many low blows, as small businesses across the country have had to close their doors. 

For small business owners and entrepreneurs, it’s been a difficult year to navigate, but it’s not all lost. Here at Entrust Capital Funding, we write a lot about the entrepreneurial spirit and how it relates to real estate investors. So while there are many uncertainties and unknowns, the year 2020 taught us that that is always the case. 

What We Learned from 2020’s Pandemic

The pandemic changed the business landscape, but just as some businesses flourished, others had to adapt, reassess, and maybe even start over. For people looking to find lucrative opportunities, this presented a ripe time for launching a new venture. 

Forbes magazine points out that while the pandemic put a lot of businesses in jeopardy, it is nothing new to see new types of businesses or a resurgence of old models when there’s a sea change. The argument points to several major enterprises that began during difficult economic times. 

During the recession of 1957-1958, the first Hyatt Hotel opened and rose to great successes. Microsoft was founded during the oil embargo of 73-75. The years following the 2008 housing bubble saw the emergence of popular startups like Uber and Airbnb. Perhaps these society-altering events force people to realign their thinking and change consumer needs and demands. As we slowly see our society return to ‘normal,’ there are likely to be permanent changes. 

The Real Estate Market for 2021 

As anyone in real estate will confirm, the housing market has been smoking this year. In the El Paso area, reports of hungry homebuyers running out of houses to buy made the rounds in the real estate community. A KFOX report as late as Sept of 2020—when El Paso was considered a hot spot for the pandemic—people continued to buy homes. The data pointed to more than 30 homes sold per day during August in El Paso county. The Fall made for the biggest home growth that many in the business have seen for many years. 

The main reason is low mortgage rates but also people who found themselves stuck at home or paying exorbitant rents, deciding that investing toward their own place was probably the way to go. Young Millennial buyers seemed to suddenly jump onto the market, as many found themselves to be in an economic position to do so. 

According to another report, Millennial and Gen-Z buyers are expected to play a growing role in home purchases and single-family housing starts are expected to grow another 9 percent in 2021. As the younger generation settles down and gets high-paying jobs, they become a good home-buying prospect. 

What Does This Mean for Real Estate Investment?

As far as real estate investment goes, it continues to show promise for the upcoming year. This is not only because the real estate market has shown to continue strong even through the harsher pandemic numbers, but because new home construction has slowed and this means that many older homes on the market that need remodeling are being scooped up as investment opportunities. Residential construction continues to face limiting factors. These include higher material costs (such as lumber) and longer delivery times for materials, skill shortages, and more. 

If you’re a real estate investor that is looking to flip homes and sell them in the greater El Paso area, this may be your time to jump on the opportunity. With many new home constructions lagging, people that are putting their homes on the market are being incentivized by the rising home prices. Many homes, however, will require major and minor renovations that can make quite the difference on a final sale price. 

There are other real estate investing options as well. According to U.S News, the most popular places to invest as the year of 2021 kicks off are:

  • Residential properties: The new work-from-home-model is changing the way people live and operate at home. They may find themselves looking for new spaces that accommodate the modern ‘online’ lifestyle. 
  • Industrial properties: Places usually used for storage and warehousing might have a high potential for many eCommerce businesses sprouting up. 
  • Commercial/retail properties: As many retail stores move online, their spaces will soon become available and can be converted or renovated for new purposes. 
  • Vacant land: Investing in vacant land is a little different but can be a great way to go into an investment for someone that understands zoning laws, construction, and more. 

As the pandemic forces many businesses to close their doors, many commercial spaces that can be transformed will be made available. As changing cultural trends continue thanks to the changing job landscape, the possibilities to turn real estate into a new and lucrative investment continue to remain positive. 

Looking To Dive Into Real Estate Investing in 2021! We Got the Right Solution. 

Before you can invest in real estate, you need to have a plan and some idea of how to obtain the funds necessary. Sometimes it can be harder than it sounds, but with Entrust Capital Funding, we can provide you with quick answers about your qualification to obtain a loan from us. We operate in El Paso and are helping many entrepreneurs start their enterprises with real estate and housing investment. Call us today and find out more. 

Real estate agent signing new home owners

How to Break Through In Real Estate Investing

By | El Paso, real estate investment loans | No Comments

There is no shortage of advertisements, reality television shows, and YouTube stars that go around talking about the fortune awaiting your next real estate flip. They make it sound easy and straightforward. It can be! Flipping homes has become a popular venture and one that people of all walks of life have taken a stab at. The initial hurdle for average investors seems to be getting over that stage fright or ‘beginner nerves.’ It’s natural to be nervous about jumping into a new financial adventure. But you don’t have to do it alone! There are plenty of resources and advice out there that can help you proceed with caution and an arsenal of knowledge. So let’s take a look at some good ways to break into the real estate business. 

Here’s How to Become a Solopreneur 

Previously, we wrote about the spirit of entrepreneurship in America and how it drove innovation and economic expansion. Today, there is a new hot button word that takes from this incredible spirit of adventure and transfers it to the work that you can do as an individual. Hence, the solopreneur. While many do house flips as a tag team activity, it is also something that you can do on your own. In many ways, define your own schedule, rules, and goals. It’s why sometimes house flips are known to be one of the favorite activities of solopreneurs. 

House flipping can be for everyone: from homemakers, young professionals, and even movie stars and celebrities. Several notable names have made quite the fortune with real estate investing. Some of these people include Arnold Schwarzenegger and Vanilla Ice. As if Mr. Schwarzenegger hadn’t done enough in his life, as a world-famous body-builder, iconic actor, and governor, many people will be surprised to know that young Schwarzenegger got his start in real estate investing. His early investments and the revenue he acquired from them allowed him to pursue his billion other interests. He would scrape together winnings of body-building contests and other gigs to purchase multi-family real estate. He would then, in turn, convert into revenue streams. 

Using Fear as a Powerful Motivator 

As humans, fear is a defense mechanism to protect us from harm and dangerous situations. Biologically speaking, this can be a very useful tool. However, we all know that fear can also hinder our ability to take just enough risk to do extraordinary things. Just ask anybody who has ever done anything worthwhile, and they will tell you that they suffered from nerves and quite possibly some serious doubt at some point in the process. It’s ok. Television makes house flipping seem very easy, but when was the last time something was as easy as seen on tv? Real estate investing is there for the taking, but it does require some due diligence and smart decision-making. Here’s how to get started. 

Tip #1: Learn what you can and continue learning. 

Like any other industry, the real estate market and the industry are always changing. It is very closely connected with the market and the state of the economy, so looking out for signs and having some cursory understanding of the many factors that affect investing will only serve you well. Don’t act blindly. Sit down and organize your thoughts and figure out where you might lack knowledge. 

Tip #2 Build a Network of Support

Many people try to break through into real estate, and many of those people remain eager to share their knowledge and experiences. There are people out there that dedicate their whole life to real estate and studying the markets. Many communities have open financial advising meetings or support groups for those trying to get into real estate. Get ideas. Learn. And find a network of people that are there to help you with a wise word when you need it. 

Tip #3 Partner Up With A Suitable Real Estate Agent & Contractors 

Flipping a home is one thing, but you are going to sell the property at some point. Part of building a professional network is looking around for trustworthy real estate agents that specialize in flips and know the market. Real estate agents are on the front lines, and they are filled with useful tips and advice. Working with someone you trust and that you don’t have to micromanage when it comes time to sell is one way to ensure a successful and quick sale of your property. Knowing and trusting contractors or companies that will be part of your ‘repair team’ is also huge. Working with people you can trust to do the job right will save you the tendency to need to micromanage every single repair. 

Tip #4 Gain Knowledge of Interior Design and Home Repair 

One mistake that people make when flipping homes comes in the form of the repairs themselves. If you’re buying a flip property, it is understood that you will be making repairs on the home yourself. You’ll likely want to oversee some of these repairs, and some you will trust contractors in your area. So, just because you are remodeling and making repairs to the home doesn’t mean you are doing it the right way. More specifically, it doesn’t mean that you are pouring the most resources into the most important kinds and types of repairs. 

You also want to think about having a safety net. Don’t go all in the first time and play it smart. Keep your eyes open, and you’ll be just fine. 

One of the best things you can do is go with trusted capital. Here at Entrust Capital Funding, we support the entrepreneurial (and solopreneur) spirit. It’s why we provide easy access to loans and help people make a splash in an industry that is open to anyone willing to work for it! 

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.