How can real estate wholesalers streamline and be confident in flipping their deals fast?
Wholesaling is recognized as the least risky, fastest, and often most profitable way to make money in real estate. How true that is for individual investors will depend a lot on how they do it. The following tips can streamline the process and help deals to really stick.
Be Sure About Your Numbers
To build a reputation that allows you to do high volumes of repeat business, fast, and to keep your deals together after you’ve inked them with buyers; make sure the numbers you are presenting are right. That includes values, approximate repair costs, holding costs, and potential rents.
Avoid Quirky Properties
Some properties will be very difficult for your end buyers to finance, and for future buyers to get financing on. You don’t want to be stuck with them, or for your buyers to be stuck in that position either. This probably includes units with abnormally small square footage, and those bordering on commercial or industrial real estate zones.
Insurable Title
Property titles are a mess in the wake of 2008. Many have numerous red flags. That can present financing issues, may scare off savvy buyers, or cause problems down the road if there are challenges to title.
Cash Buyers
Sticking to cash buyers for your wholesale deals can remove a lot of risk and speeds things up. It may not always be viable, and may not be faster if there are a lack of cash buyers. Yet, it can remove issues with lenders approving your inventory. You can also get an edge here by continuingly education yourself on evolving lending criteria, so you know which banks and loan programs will really fund certain deals, or not.
Transactional Funding
Using transactional funding for your deals can help you stay liquid, do more deals at the same time, eliminates barriers associated with traditional underwriting, and speeds up funding, with closings possible in just a few days.
Summary
Wholesaling is great, if executed well. Leverage these tips to minimize risk and headaches, and to maximize how much business you can do, and increase efficiency, so you net more profit.
"I want thank you for the excellent service I received from Best Transaction Funding.The quick response I received from your company from the beginning of the transaction and to the end was unbelievable. I also want to give a special compliment to you as well. You went to great lengths to keep me informed and gave my title company all the information they needed to complete a successful closing. I cannot express how thankful I am. Such service builds great working relationships. I will definitely recommend Best Transaction Funding to all my fellow investors. Thank You."
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- Dave Pricken, Real Estate Investor, NJ
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- Phoenix Properties, LLC, Ronald Destefani, Investor, PA
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"You each deserve high marks for your wonderfully quick response time to each of our questions and requests! You hit home runs with us! Your application system was easy to use. Our deal met your qualifications and every time Rob Kozak or any member of Mystic Properties, LLC phoned, we received a "real" person dialing back to speak with us.
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"Boy, you guys are impressive! I can’t thank you enough for scrambling and getting my deal done at the last minute like that. You and your team were awesome!"
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