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8 Ways to Invest in Real Estate Without Actually Buying

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

Home renovations being completed to sell for a larger profitThere is a risk of investing in anything. You always need to make sure that the market that you are investing in is profitable and will continue to be profitable. Investing is always a risky business and some markets are riskier than others. Investing in the real estate and housing markets can be a risk and many people are intrigued by it but not willing to just dive all the way into it. There are ways to invest in real estate that can help you learn all about the market without as much risk as actually buying property. Here are 7 ways to invest in real estate without actually buying property and posing less of a risk to your wallet. 

 

Become a Real Estate Agent or Start a Brokerage

Being a real estate agent and a broker requires some education and licenses that need to be obtained. Those licenses and levels of education sometimes depend on your location and area of expertise. This is a great way to learn about the market and work your way up. Successful agents earn a decent amount of commission and brokerages can earn a decent amount of commission from their agents that work under them. If you are a successful agent, building a brokerage might be a very profitable option for you to consider.  However, starting a brokerage can be very expensive. It does take money to make money, so consider how long it can take to grow and see a return in profits. 

 

Wholesaling Houses

This is similar to owning and flipping a house, except you don’t have to own the property to do it and you don’t front the cost of maintenance. You essentially contract someone who is looking to sell their home and you then take that contract and sell it to a buyer for a profit. The trouble with this way of investing is that it can be very difficult to find a home that has been undervalued in the market that a person is willing to renovate and sell. Lots of factors need to line up in order for this kind of investment to be successful. 

 

Real Estate Mutual Funds

Mutual funds are pulled together and overseen by an investment manager. You can choose a fund that is growth-oriented or income-oriented. These are designed to minimize the risk of investing, but like anything in real estate, there is still a slight risk. If a real estate related risk affects one of the investments, it is likely to infect the other investments as well. This is where you would really want to evaluate the market and see if the risks are too big to take. 

 

Invest in Home Construction Companies

By this we mean investing in the stocks of home building companies. Be sure to look closely at stock numbers and study the home building market. Perhaps, start small and work your way into investing more money if you see that you are turning up a profit. Invest if you truly believe that the home building market is going to boom and remain steady. 

 

Real Estate Partnerships

Investing can be really expensive to do on your own. This is where it can be beneficial in having an investing partner. Each person had their own responsibilities that they take care of. This is a great way to purchase property at a lower price. Depending on the agreement, you can choose what is most enjoyable and easiest for you to take care of, and leave the rest to your partner. 

 

Invest in Real Estate Service Companies

This is a great way for beginners to dip their toes into the housing market and build their portfolio until they can really invest. This involves minimal work and is a great way to gain experience and learn. 

 

Become a Real Estate Appraiser

This is another great way for you to learn about the housing market and learn what times are the best to invest in. As a real estate appraiser, you can specialize in commercial or residential properties. You will determine the values of properties and their surrounding areas while making a decent salary and learn about valuable housing markets. 

 

Obviously, any kind of investing can be tricky, but the housing market is a particularly tricky market, especially in this economy. Entrust Capital Funding id here to help. Contact us to learn more about real estate investing.

house flip

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.

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!!