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house flip

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

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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!!