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How To Survive & Leverage Rapid Inflation In 2022

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on Thursday, 30 December 2021
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Inflation in 2022 is expected to accelerate far faster than we’ve seen in decades. Even beating out the hyperinflation of 2021.


As a real estate investor you should be prepared to survive it, and understand how to leverage it to your benefit, instead of becoming a victim of it.


Transwarp Inflation

We are running out of terms to describe just how fast inflation is accelerating in the US. Some have started dubbing the pace we’ll see in 2022 as ‘transwarp’ inflation. Transwarp is about 8x the speed of light. It is a whole new dimension and laws of physics.


It is quite likely we will see mind blowing inflation over the next year. Price increases many didn’t think possible.


Consider that the Dollar General has been bringing in a new brand, called Popshelf, which targets prices around $5, instead of $1. Major food suppliers like Heinz are also increasing prices on some groceries by 20% in the first three months of the year. The actual retail price tag that consumers have to pay could go much higher.


In some places rental rates have gone up over 70%. Insurance rates have already gone up by 30% on many customers.


As a real estate investor or business owner you must anticipate these changes, and budget for them. Otherwise you could soon be in the red. Price in inflation on everything, including labor, software, marketing, title, taxes, interest rates, and utilities.


Property Prices

House prices have been growing even faster than inflation in some areas already. Property prices could go up much further in 2022. At least in some areas. Especially with ongoing migration and new covid variants. Use it to your benefit in flipping houses. Price it into your offers.


Distressed Inventory

Extreme inflation means many will no longer be able to keep up financially. At least unless they are also benefiting from COVID and the shifting economy. Such as  startup entrepreneurs, CEOs of big business, and real estate investors. That means the potential for millions more falling late on housing payments. This could provide much craved inventory for real estate wholesalers, flippers and landlords.


With the right marketing, connections and pitch, you can help out these property owners, help them exit to somewhere they can afford, and be well paid in the process.

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Zillow To Fire Sale 7,000 Properties, For Less Than They Paid

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on Thursday, 11 November 2021
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There is great news for real estate wholesalers who are looking for more inventory. Zillow’s collapse also means that it is shedding thousands of properties for less than they paid for them.


Zillow’s Flawed Products Finally Catches Up With It

There are certainly many real estate investors who are cheering the recent announcement that Zillow is imploding. They have plagued the market for years with a horribly broken data tool.


It turns out that same tool has now finally been their own downfall. After going all in on house flipping, they have announced that their inability to calculate house prices has effectively put them out of business. Effectively wiping out $30B in market value for stock investors, and leading to layoffs of at least 25% of their team.


Without house buying, a Zestimate and data business, and having continued to lose hundreds of millions a year, despite billions in sales leaves little of a company left, if anything.


Zillow’s Implosion Vs. House Flipping

Where Zillow failed many others are thriving and are experiencing their best years in real estate ever.


Obviously, understanding your property values, to make smart offers and re-market them well is absolutely pivotal to success. Something Zillow has finally admitted it simply cannot understand.


Aside from understanding property values, you also have to have a business model that works, and to add more value than others. Yet, Zillow Offers neither offered a great process for sellers, or offered competitive rates. In fact, they tried charging sellers far more in commissions than full priced Realtors.


Fortunately, now regular wholesalers not only get to enjoy less competition in the marketplace, but also the opportunity to scoop up thousands of properties the failed internet company needs to sell at a discount.


Lots More Inventory Coming Down The Pipe

Zillow will probably prove to be just the first in this domino chain. Other large iBuyers and their backers will probably take note of this, and feel better about admitting defeat or will be scared off as well.


That could mean tens of thousands if not far more in discounted deals coming. While investors with capital are going to be looking for new ways to buy into this space.


Now is the time to develop relationships and position yourself to get these deals.


When you sign them, we’re here to fund your deals for you...

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5 Factors Real Estate Wholesalers Should Be Watching

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on Tuesday, 19 October 2021
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Here are the factors real estate wholesalers should be monitoring as they plan acquisitions and marketing campaigns now.


The Supply Chain

Manipulated or just messed up, the average US household is finding supply chain pains and disruptions very real.


Some are ignoring it and hoping it passes. Others are stressed about it. Some are finding it painful as they can’t find their kids’ favorite foods and the end of year holiday season is a big question mark.


In real estate it means that some construction materials are not available. Furniture is hard to come by, and orders placed are not guaranteed to arrive. Rehabs are taking longer than normal. Fewer new homes will be coming to market.


The Second & Third Home Market Is Growing

According to Bloomberg the demand for second and third homes is growing. This can be a great niche for wholesalers to target. One which is often rich with qualified buyers who aren’t price sensitive.


The New Recession

Some analysts are arguing that by the time the next set of economic data comes out it will reveal that we’ve already entered a new recession. They are mostly basing this on what they see as the leading indicator of falling consumer sentiment.


While the majority of mainstream data being published shows the economy is growing, while mortgage forbearances decline and unemployment is low, it is important for investors to seek out the raw data to draw their own common sense conclusions as well.


On the bright side, recessions are a great time for real estate wholesalers to find distressed inventory.


Though any new stimulus and new policies could easily mask a dip or extend the current run up.


Warp Speed Inflation

Those making less than $250,0000 are probably feeling the impact of rampant inflation already. It is at the grocery store, the gas station, and in the tax bills. There is no sign of it slowing.


The good news is that real estate keeps growing faster than inflation. That includes house prices and rents. Many of which are up 50% to 70% this year alone.


Liquidity & Credit

How fast things can continue to grow versus running into a financial crunch depends a lot on credit markets. This includes interest rates, international credit, and mortgage availability. Some markets have been seeing close to 60% of home sales going to cash buyers already. Financing is essential to keep things moving. Right now that money is available. Especially for real estate wholesalers. Take advantage of it.

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Emerging Niches For Real Estate Wholesalers

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on Thursday, 23 September 2021
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It is the real estate entrepreneurs who are able to see how markets are changing and are able to creatively step up to meet the curve that enjoy the most consistency in their investment businesses.


So, where are the opportunities now?


Housing For The Unvaccinated

With increasing COVID related restrictions, and now some landlords even using vaccination status as a cause to evict existing tenants, we are facing two different housing markets. Access to housing for the unvaccinated may quickly become very limited.


Providing space for them among rentals and properties to buy in friendly communities could be a great value proposition that carries a nice premium.


Expired Listings

Whether officially listed with a Realtor on the MLS, or an amateur for sale by owner, there are still a large number of properties which are going unsold. Some have been advertised for sale for years. Over ambitious sellers have often asked more than the market would pay. As things change, they could soon be very motivated to strike a deal, and at far less than they were asking for before.


Tracking these properties and providing a solution could be a great source of deals for wholesalers. Especially, when it is often poor marketing, not just pricing that has led to them not selling up until now.


Short Term Rentals

Savvy landlords are coming up with many creative ways to avoid being hit by market changes or anti-landlord crisis policies in the future. While actual performance of traditional rentals is much better than the media may let on, it is wise to get ahead of the curve. Some will turn to running government subsidized housing. Others to memberships or annual leases paid in advance. Though short term rentals will continue to be one of the safest and most profitable ways to operate income properties in the future.


Summary

The rules of the real estate and finance markets have changed in unprecedented ways. These evolving trends haven’t finished morphing either. Yet, it is a fantastic time to be in real estate. Especially for those that can see the next set of changes coming, and position themselves and their inventory to provide value and profit from it.


What will your new niches be as this unfolds?

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Wholesaling Properties In The Fast Evolving New Normal

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on Thursday, 16 September 2021
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How do real estate wholesalers need to be adapting to doing business in the new normal?


The market is better for real estate investors than it has ever been. Though things are undeniably different now. Some things may still be the same. Though the COVID lockdowns and new rules have certainly changed the way we live for at least another generation, and the way we work forever.


Between new data showing that Moderna now admits those who got its vaccine last year are now twice as likely to get COVID this year, and teens as much as 6x more likely to end up in the hospital with heart conditions as a side effect of the virus, compared to getting COVID, don’t expect us to go back to the old normal any time soon. Even more so with new coronavirus variants which are expected to be more contagious and vaccine-proof.


The New Normal

Although things will continue to evolve, now that we have begun settling into the new normal, we are getting clarity on some of the ways life has changed.


We now have:


Ongoing foreclosure and eviction bans

Ongoing stimulus

High inflation

Rising taxes

Almost exclusive work from home

Enhanced wealth distribution measures

Strict travel and access rules


So, what does it all mean for investors?


The Divided States of America

The country is now significantly divided by COVID related rules.


Insure My Trip recently published a state by state list of rules, including ongoing inter-state limitations and quarantine and testing rules.


Dr. Fauci has even supported mandatory vaccination for domestic air travel in recent days. If passed, that could easily apply to all types of travel between states.


Some states and cities are strict, only allowing those vaccinated to eat out and enjoy entertainment outside of their homes. Even dictating mandatory vaccines to keep businesses open. Others are completely free, with no restrictions at all.


The outlook seems to be far more divided.


For investors it may be wise to begin finding more in-state buyers. Out of state buyers may become more cautious. Or you may wish to focus on a different set of buyers. Those who are exempt from the rules, and travel restrictions. Think celebrities, politicians and the uber wealthy.


Health Protocols

Stay stocked up if you want to stay in business. If you want to be networking, hosting showings, etc., be sure you have plenty of masks, sanitizer and cleaning supplies. Hoarding is bad. Being prepared is smart.


The Nomadic New Norm

Since the onset of the pandemic lockdowns we saw places like Manhattan lose 40% of their population. People started moving back last year after landlords offered cheap rental deals. Now those landlords are asking 70% or more for lease renewals, and many may leave again. Especially, as people give up hope of ever returning to the office again.


Except more of this back and forth migration as people look for housing deals and find the right balance in living conditions.


In Demand Features

What people want in housing is changing too. Priorities may now be on amenities like home delivery, fast Wifi, and more space.

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6 Mistakes Wholesalers Are Making Now

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on Thursday, 09 September 2021
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This is one of the best times for wholesaling property that we’ve ever seen. Just make sure you aren’t falling into these mistakes that many wholesalers are making out there right now.


Buying Flooded Property

Disasters like hurricanes and floods can yield some great inventory and discount opportunities. Yet, for the many real estate wholesalers who are now working remotely online, it is important to know what you are getting.


You can’t expect to buy a flooded out, underwater property and sell it for the same amount as local comps which are high and dry. This is a big issue right now with record amounts of storms and rainfall.


If you do find you’ve bought a property like this, then you are probably going to have to at least seriously discount it below other comps to move it.


Properties With Non-Performing Tenants

There are end buyers who may be willing to take on these properties. Yet, expect that number to be far fewer than there were two years ago.


Now there is really no telling when they will ever be able to get that occupant out, and what their real financial bleed and costs will be until that happens.


Again, this is something that needs to be priced into your offers.


Accepting Cashier’s Checks

Payments have changed a lot in the past few years. Now some can not only pay for properties with credit cards, but PayPal or bitcoin transfers. Still, some old school investors are relying on some antiquated payment methods like cashier’s checks. They used to be considered guaranteed funds. They are not any longer. They don’t have any more value than personal checks. Do not sign over any property until you have cleared funds in your account.


Pricing In Costs For The End Buyer

Not only may your offers and asking prices fluctuate with the market, but they should also take into account inflation and property specific costs.


End buyers, especially landlords and rehabbers have to price these line items into their offers and what they are willing to pay.


Recently there has been massive inflation in installing utilities, new construction, labor, and building materials for rehabs.


If it is costing them 30% more today, then if you don’t price that in you may be sitting on that deal for too long.


Property Values

Property values seem to have been soaring. Yet, there is a massive difference between actual sold and recorded transfers and asking prices. Don’t rely on rumors or listing prices. Overpriced properties may still have been sitting on the market for two years or more. Look at recently closed comps.


Not Maximizing Financial Leverage

It is a fantastic time to scale your real estate wholesaling business. Yet, many are feeling uncertainty about the future. Maximizing your leverage with transactional funding will dramatically reduce your risks, while greatly elevating your capabilities to do more deals.

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Real Estate News & Trends To Watch Now

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on Thursday, 29 July 2021
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Here’s what’s happening in real estate this week, and what it means for real estate wholesalers…


Rents Are Up

US monthly apartment rents have risen by an average of 12% over the past year, with some landlords proclaiming they’ve managed to raise rents by 14%. Even in places like Rochester, NY and Allentown, PA rents are up around 20%.


Realtor Magazine says new movers are also prepared to pay 15% more than existing tenants this year.


It is a great year to be flipping to landlords, especially when it comes to vacant property, or those with leases expiring soon.


Even Will Smith and Jay-Z are getting in on the action; participating in a new $165M round for a rent to own fund.


Mortgage Delinquencies Are Down

Despite all the fear being spread in the media, and being used to force new policies, CoreLogic reports that mortgage delinquencies began turning around in April, with defaults falling in every state, except for WY.


New Foreclosure Moratorium

A combination of new mortgage servicing rules by the FHFA and CFPB are effectively creating a new foreclosure moratorium until 2022.


There are exceptions, including vacant property, and where borrowers have defaulted on trial loan modifications. These are likely to be the properties that make up much of the inventory for real estate wholesalers through the end of the year.


Biden Promises To Cut Mortgage Payments By 25%

The Biden administration just announced it will be cutting American’s monthly mortgage payments by 25%. It aims to do this via modifications, or providing second lien mortgage loans on millions of properties nationwide.


Of course, not everyone will qualify, and the disinformation could lead to a 2008 like situation where homeowners fail to act as they wait for a personal bailout that never comes.


The New Infrastructure Bill

The giant new infrastructure bill not only dedicates $109B to roads, which have clearly gone out of fashion for most future thinking international cities, but also gives the IRS $40B specifically for enforcement, and to chase down more revenues from taxpayers. The hope is that this will raise an extra $100B in cash to spend. Make sure your accounting is clean, up to date, and you’ve paid your taxes.

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8 Things Robbing Your Wholesaling Business Of Deals Every Month

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on Wednesday, 07 July 2021
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While some have complained about fierce competition and low inventory in the market, there are still plenty of deals for wholesalers to do. Unfortunately, in many cases it all comes down to real estate wholesalers sabotaging themselves.


These are eight of the most common causes of lost deals every month.


Demanding To Talk On The Phone

Generating dozens, and even hundreds of visits to your website or property ads isn’t that difficult. Yet, it is all for nothing if you don’t enable prospects to communicate in the way that works for them and medium they trust.


There are so many scammers out there that most distressed homeowners, and probably most buyers no longer want to talk to a salesperson on the phone. They much prefer text or email.


Your Email Address

How does your name and from address show up when you are emailing buyer and seller prospects? When was the last time you checked? Does it look spammy? Or does it look like you are a real, authentic person? Get this one thing wrong and they probably won’t even open your messages. It’s even less likely they will respond.


Pop Ups

Hopefully you aren’t just relying on a Facebook page or cheap website template that looks like everyone else. Beyond that, one of the top things killing online business today is popups. It seems that those who aren’t getting results from one popup ad or message think it is going to work if they have two, three or four. If it isn’t working, don’t do more of it. If people can’t see the info they want on the page already, they are just going to click over to your competition.


Focusing On The Wrong Details

If you are going to do marketing, and especially hire someone to do marketing, be wary of getting hung up on the wrong details. The only thing that really matters if it works. Is it working? Is it profitable, or at least on the path to being profitable? If so, get busy fielding the leads.


Taking Too Long To Respond

Customers expect instant responses today. If you can’t do that, then hire help to handle it. Otherwise you are just wasting your time and money marketing.


Taking Too Long To Make The Offer

Taking weeks, days, and even hours to make an actual offer dramatically reduces the chances of closing the deal. Making offers could be so much faster, automated and intuitive. It will definitely separate you, and put you ahead of the competition.


Inaccurate Property Information

Providing prospective buyers with as much information as possible upfront can definitely help facilitate and speed up the decision making process. Though providing too much, and getting zoning or usage information wrong can also rob you of deals you should be closing.


Not Being Able To Fund Deals Fast Enough

Serious buyers and sellers just want to cut right to signing the deal today. You need to have the funding ready for your transaction so that you can close fast too.

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How Much Of A Discount Do Real Estate Wholesalers Need?

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on Thursday, 01 July 2021
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What discount do wholesalers need to make offers on homes, and turn a profit?


There is a lot of misinformation about how much house wholesalers should pay for properties and make offers for. This can be a major detractor for sellers and agents selling to wholesalers, as well as for wholesalers themselves, when out there searching for deals and making offers.


Be wary of old rules of thumb. Especially in a fast changing market, and when what’s happening out there can be so different from one local market to the next. You don’t want to short yourself on the volume you could be doing, or get stuck and go bankrupt holding deals you paid too much for.


How Much To Offer

Formulating offers is actually quite simple as a wholesaler. You take how much your end buyer will pay, and subtract your costs of doing business and desired profit margin.


End resale price - (costs + profit) = acquisition offer price


If you secure your buyer upfront in this way, then you already know your exit price, and can use transactional funding to finance 100% of your purchase and closing costs.


Build Your Buyers List

The key to this is building a big and growing buyers list of qualified buyers.


Then get to know them intimately well.


Understand The Market, Not Just The Headlines

Everyone loves to quote the big media data points. Yet, in the back of all of our minds we know that we shouldn’t be trusting tabloid news. And it's all tabloid and fake news today.


You have to know the real local market as it is on the street.


Know how much properties are worth to retail home buyers, based on what they can afford and finance. Know how much they are worth to landlords, based on their desired yields and calculations. Know the discounts that house flippers need to be safe and profitable in the current market.


Summary

It really doesn't matter if you are buying properties off of the MLS at peak prices, as part of a bulk pool of REOs, or a direct to seller, direct mail find or inherited home. The math is still the same. Be wary of being too glued to rules of thumb in dynamic markets. Know your buyers and you’ll know your offer prices.

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Real Estate Wholesalers Wanted

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on Thursday, 04 March 2021
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Yes, there is still room in the market for you as a real estate wholesaler. The market needs you.


You may have seen lots of recent success stories about others wholesaling millions of dollars of real estate, and even hundreds of deals each year. You may be seeing an incredible rise in demand for property in your area, and sharply rising prices too.


While you may be attracted to the income this sector offers, you may also be wondering if it is still a good time to get in. The answer is yes!


Not only is there room for you, but great wholesalers are still very much needed.


Market Conditions

We are currently in the ideal market conditions for real estate wholesaling. In fact, these are probably the best conditions we’ve ever seen. There is both a large amount of motivated home sellers, and motivated home buyers.


According to one recent report from the New York Post at least 1 in 10 households are in distress with their mortgages.


At the same time home buyer activity and resale prices are hitting new highs.


To complete this trifecta, transactional funding lenders are actively looking to put their money to work with real estate wholesalers.


Finally, while there are many people trying to wholesale real estate, just like any other profession or industry, most of them are not doing it well. The market really needs honest investors, who want to give everyone a fair deal.


They Need You

Homeowners need you. They need honest real estate investors who will treat them fairly, and won’t just tie up their homes in contract for months, leaving them to lose their homes to foreclosure when they can’t find an end buyer.


Home buyers need you too. They need a reliable wholesale seller who can give them good deals, on homes that will really work for their families.


Investors need you too. Rehabbers and rental property investors desperately need inventory. They need wholesalers they can trust to give them good deals and be transparent about the properties they have. Wholesalers are the lifeblood of their businesses.


The economy needs you. While many love to hate on real estate investors and wholesalers, it was this group which virtually single handedly pulled the country out of the 2008 Great Recession. It is this group which has greatly contributed to the economic rebound since COVID lockdowns started, and will be leading the charge to pull us through the next recession.


This is your chance to provide an incredibly valuable service and be very well paid for it.

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Post Election Real Estate Outlook: Perfect For House Flippers?

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on Thursday, 12 November 2020
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Now that the presidential election seems mostly over, what does the outlook for the US real estate market look like? Has the recent vote created the ideal conditions for house flippers?


The K Shaped Market

The second half of 2020 seemed to bring what many are calling a K shaped market or economic recovery. Billionaires added more than 30% to their wealth in just a matter of months thanks to the crisis. A few well positioned companies have thrived on the recent chaos and shifts. Many other parts of the economy seemed to be struggling, with the future of millions of jobs in question.


With such a close presidential election we also have two very different perceptions of where the economy and real estate market is headed. Perhaps for the first time in recent history, the country will be split down the middle in what it expects the market to do, and what they need to do to survive and thrive over the next few months to four years.


Panic & Distress

The 50% or so of the country which didn’t vote for the president-elect are not very optimistic about the economy or property market. They are cringing. They are bracing for new lock downs, rising interest rates, and the end of tax benefits for long term holding of any assets like real estate. They don’t anticipate any healthy economic growth, or jobs.


Those in this bucket can be expected to be trying to liquidate any existing real estate assets. They want out before new taxes arrive and values fall too far from recent peaks. The best advantages will probably go to those who can exit before the end of the year.


With calls from the president elect’s advisors to institute a new national lockdown, millions more may move away from dense urban cities to find more freedom and space.


High On Optimism & Exuberance

Of course, the other close to 50% of the country must have cast their votes believing their new president will be great for their bank accounts and property values.


This euphoria of winning should be spurring great financial confidence and a buying spree. Aside from the usual sprint transactions as those working in politics move, many should be upgrading their homes, and buying up as much investment property as they can, expecting today’s prices to prove cheap compared to the lift they will get over the years ahead.


Work The Middle

So, on one hand we have both very real and even more perceived distress in the housing market. Then the other half of the population ought to be extremely bullish and active. These are the perfect conditions for real estate wholesalers and house flippers. It may be the most split our market has been between bulls and bears in recent history. You have both motivated sellers and optimistic buyers.


Real estate investors stand to benefit a lot from working the middle of this equation, and there is still easy access to financing for real estate wholesalers.


Just make sure you really know your end buyer market. Don’t assume. Presell those deals and know what the market will really bear in terms of pricing and terms before you get tied up in contracts and inventory.

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The Art Of Customer Service For Real Estate Wholesalers

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on Thursday, 22 October 2020
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Customer service may seem like a lost art in the world today. Yet, it will make or break your real estate wholesaling business. Here’s how to master it in a few steps…


Respect Its Importance

Customer service is especially important in real estate. Great service is vital. No matter how big your company is, poor service will eventually bankrupt you. Once you have a bad reputation for it, it can be too late to shake it. In contrast, great service can make your entire business and make it grow fast.


More than just barely scratching through customer satisfaction, you should be shooting for customer happiness. Delighted customers are repeat customers, referral agents and brand ambassadors.


It is also important to get that this isn’t just about serving your buyers and sellers either. It equally applies to your team, vendors, investors and everyone else your business touches.


Make It A Priority

Most companies and business owners know that you should be striving for good customer service, but don’t really do anything about it.


To make it happen, it must be made a priority.


It should also be a decision guide. If you aren’t sure what to do in a given situation, choose the option that will deliver the best customer service experience.


Hire For It

Unless you are naturally a super social person who loves delighting even difficult customers, and will be on the frontlines dealing with them all the time, then you need to hire someone to champion this part of your business. Their number one job role is just to make customers happy and ensure they have good experiences.


Empower It

Where the real problems happen is the gap between talking and doing. Every company says they care about and deliver good service. As you’ve already experienced, very few do.


This void comes between hiring people and giving them the wrong priorities, and simply not empowering them to deliver good service. They aren’t given the ability to do the job.


Hiring well is useless unless you actually empower them to do a great job. That probably includes giving your teams decision making authority and the ability to make customers happy, even if it costs you a few dollars extra.


Reward It

As a real estate business owner you’ll get more of what you reward and less of what you punish. So, if you want your teams to deliver better customer service, make sure you reward them when they do. Come up with penalties for those who sour your customer relationships.


Practice Empathy

When there are problems, great customer service comes from empathy. It’s easy to put down bad customer behavior to bad people or crazy customers. They might be. Or they may just have a different world view, or you didn’t set the expectations well. In any case, it usually pays to practice empathy, and err of on the side of making them happy anyway. Do the math on what’s better for your business long term. You can always blacklist them from doing business with your company in the future if they are the problem. Just make them happy this time.


Build Relationships, Not Transactions

Another major disconnect is when companies just focus on transactions. What if you focused on building long term relationships and providing value instead? How would that change the dynamics of your service?

 

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Has Having A Real Estate Website Just Become Too Risky?

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on Wednesday, 23 September 2020
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Is it just too much of a liability to have a real estate website today?


The financial risks of having your own website have grown dramatically in the past few years. New laws and precedents set by some lawsuits are making it very expensive to have one. With recent economic trends and higher unemployment, real estate businesses could be a hot target for even more criminals and opportunists.


Here are the three biggest risks to watch out for, plus some potential alternatives.


1. ADA Lawsuits


Many good hearted and well intentioned entrepreneurs and real estate businesses have recently been targeted by malicious ADA lawsuits. The most notable case so far has been the blind man who sued Dominos pizza for not being able to use their website, and won in the US supreme court. Back in 2018 there were at least 2,200 similar cases filed. Unfortunately, this may just lead to fewer apps and websites, and fewer services available to everyone, as well as increased prices to cover this liability.


2. Images


Image copyrights are another huge issue. One which many real estate websites and publications may have to settle for thousands of dollars per image they didn’t have the right to use. Even if they were out there in the public domain. Stolen text content and blogs can also be sources of lawsuits.


3. Data


Keeping up with preventing hacks and new data and privacy rules that can vary by jurisdiction can be very expensive. Most businesses don’t know the laws and can’t afford the lawsuits. Even most large companies end up paying bitcoin ransoms or settlements for data breaches when the news of them finally leaks out.


Why Most Real Estate Websites Aren’t Nearly As Useful As You Think


We’re all told we need a website. It is true that you can’t just hope to get by with a Facebook page. Too few people use Facebook anymore and its effectiveness has jumped off a cliff into an abyss. Yet, most real estate websites are pretty useless.


They often haven’t been optimized for sales, and so don’t create the desired results. So many are cookie cutter copies of each other that they are counterproductive. They don’t carry any trust or credibility. While running an automated online business is smart, it doesn’t always work for real estate wholesalers. People, especially those buying and selling distressed property want to do business with real humans, not really poorly put together websites.


The Alternatives


The first solution is to redesign your real estate website to minimize liability. You can block it from being shown in certain areas. Or make it clear on your home page that you don’t offer your services in Europe or California, where the regulations are toughest and most lawsuits are happening.


You can also choose not to make it look like an ecommerce store. Don’t sell directly from your site. Use it more like an online business card, or educational platform in the form of a blog.


What issues have you encountered already? How are you switching things up to protect yourself?


 

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New Epidemic Of Zombie Foreclosures Spreads Across America

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on Thursday, 03 September 2020
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The number of zombie foreclosures is surging in every state in the US according to the latest data. What does it mean for real estate investors?


Almost 8,000 zombie foreclosures are in process in the third quarter of 2020 according to ATTOM Data. Almost a quarter million properties were in the foreclosure process as of August.


These numbers may still seem small compared to 2008. Yet, there may be a lot more happening below the surface.


New Zombie Foreclosures

Zombie foreclosures are homes which have been abandoned by owners and borrowers. They’ve walked away, but the bank hasn’t foreclosed and relisted them yet. They are kind of in limbo. The owner gave up and left it vacant, but the bank isn’t selling it yet. This can lead to a lot of cosmetic issues from overgrown landscaping to vandalism. They can have a negative impact on the community and neighborhood, and cost cities and counties money to maintain.


What’s Coming Next

Unless the national economy pulls off a great turnaround in the next few months it is likely this metric will increase.


It is estimated that around 30% of US households aren’t able to make their monthly housing payments. While many are acting like it is business and shopping as usual, rumors are that there are a large number of auto loan repos happening, and credit card issuers like Capital One are reportedly slashing credit lines.


If things do play out like 2008, expect a huge number of foreclosures, even if governments and lenders carefully throttle how fast they hit the market.


There is a good chance that new businesses which are booming in the new normal and the next election will put the economy on a great trajectory. Though that may be a little too late for owners trying to make ends meet in the meantime, between loss of income in 2020 and new help coming in.


What It Means For Investors

The market may now seem hot and competitive in some places and for certain residential property types. Home sales and even prices just seem to keep marching up. This is the perfect market for real estate wholesalers to acquire distressed properties and sell fast for great margins.


Even if foreclosures do kick into high gear, it is good to remember that those who made it through the last crisis, and actually saw their incomes and wealth soar, were those who invested through it, wholesaling properties.


Don’t miss out on this once in a decade opportunity to rocket your finances for the better!

 

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New Google Ads Rules For Real Estate Wholesalers

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on Thursday, 27 August 2020
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Google Ads is changing its rules. How is it affecting real estate wholesalers, other investors and agents and lenders?


Google has announced new advertising and ad targeting rules which will kick in over the next few weeks. This could shut down any existing ads and PPC or CPM ad campaigns you are running and impact your plans for future campaigns. What do you need to know? What are the alternatives? How can you still run effective and profitable Google Ads campaigns with these changes?


The New Rules for Advertising Online

Google issued new policies for advertising on August 18th 2020 which go into effect by October.


The rule changes are heralded as a step towards decreasing the chances of discrimination. Though they may also make online advertising more expensive and prohibitive for small businesses and individual advertisers.


These changes specifically target those advertising anything to do with housing, employment and credit.


The bottom line is that you will no longer be able to use ad targeting filters to reach customers and prospects by:

  • Geographic zip code

  • Parental status

  • Marital status

  • Gender

  • Age

Facebook and Google have also already been limiting other features, such as filtering and targeting by income levels.


How These New Rules Impact You

As of October 2020 any current ads and campaigns with these targeting features will be shut down by Google.


You can still run ads for buying houses, selling houses, private lending, owner financing and renting. You will just be very limited on targeting. Which means you’ll have to run much broader campaigns which run to many irrelevant viewers and consumers. Total ad cost and cost per lead could then skyrocket. Especially when you consider that 25% of your PPC budget can already be eaten up by click fraud.


One day in the future these new rules may actually be deemed discriminatory in themselves due to turning the tables only in favor of the largest advertisers who can afford to lose millions of dollars, and of course for Google who stands to benefit from higher ad revenues while delivering less results.


The alternatives are to turn to other forms of marketing, such as inbound Search Engine Marketing (SEO), affiliate and referral marketing and in person networking.


The Keys To Creating Effective Google Ad Campaigns

On the bright side, these top of the funnel ad targeting issues are only a small part of running a successful and profitable Google Ad campaign.


You can still relatively easily and inexpensively drive plenty of traffic to your real estate website. Where the difference is all made in actually getting real leads, deals and dollars is in:

  • A mobile first website designed to both look great and maximize conversions

  • Instant engagement and strong follow up

  • Consistency

As you adjust to keep those wholesale deals flowing, make sure you take advantage of our Verification Of Deposit service to get your offers accepted.

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NDAs: The Dangers Of Using Them For Real Estate Entrepreneurs

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on Thursday, 06 August 2020
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Should you be using NDA agreements as a real estate investor or business owner?


Are Non-Disclosure Agreements (NDAs) an essential step in business? Or are they a dangerous pitfall which will do your venture more harm than good?


NDAs 101:

A non-disclosure agreement is designed to prevent those you share things about your business with from sharing them with others or stealing your ideas and replicating them.


These are similar to non-compete agreements as well.


Some companies have business partners, new hires, and others sign these agreements before an engagement.


It is a pretty standard legal form you can find online and fill in the blanks.


The Dangers Of Using NDAs

Very rarely are NDAs and non-compete agreements useful to small businesses. Even in the case of a breach, you may have a very hard time proving it, and collecting. That costs a lot of time and money in the courts. Often with little to gain.


This can be different for large corporations. Those with billions of dollars in revenue and giant multi-million dollar legal teams. You can imagine the impact of someone stealing the prototype of the next Apple product and taking it to the competition to replicate in advance of their launch.


An example of this is new banking and card startup Stash. They didn’t even buy their own website domain name until they had raised almost $300M in capital, and five years and five million customers down the road.


The first danger is that they just slow you down. The last thing you probably need is more paperwork and forms and dealing with more attorneys and negotiations at each step in your business. Focus and speed is an asset and advantage. Don’t throw that away.


The second danger is that it can do more harm than good when it comes to trying to raise money and hire great talent for doing more deals and growing your business. The best advisors, freelancers and investors are crazy busy. They have their pick of thousands of people to help. No matter how unique you think your business is, the truth is that they’ve already seen the same thing 100 times, this week alone. There is a huge demand for their help. If you put up barriers like this, they’ll probably just fund or invest their time in helping someone else.


Thirdly, as a younger company or investor, what you need most is awareness and recognition. The more people that talk about your business and concept, the better it is for you. The more secret you try to keep it, the longer and harder it will be to get customers and grow.


You should almost hope people will validate and steal your idea and spread them around. If anything this will only make you do ever better. Besides, most people won’t take action on it. That's where you stand out. Plus, there is nothing really secret today. It’s either publicly online already or easily hackable in less than 2 seconds by anyone who really wants to know.


Cling to your advantages, speed, focus, innovation and taking action. Don’t worry about what others are doing.


We’re here to help you fund your next wholesale deal, and provide the proof of funds letters and verifications of deposit you need to go fast.

 

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How To Make Money When You Can’t Find Any Good Real Estate Deals

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on Thursday, 30 July 2020
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The coronavirus pandemic has unexpectedly affected every aspect of our lives, delaying tasks and cancelling plans. If you are a wholesaler, house flipper or investor, you know the real estate market was not left unaffected. The initial market projections for 2020 have drastically changed.

But real estate is not dead. As the economy bounces back, so will the housing market. Realtor.com Chief Economist Danielle Hale recommends taking advantage of the online resources available. Interested investors can pursue listings online, communicate with the owner or seller by phone or email or text and complete transactions all in the comfort of their home, virtually.

There are a couple of challenges. Some owners, sellers and Realtors are being unrealistic. They are asking for far too much, or far too much down. Others think they don’t need to sell yet as foreclosure and eviction moratoriums drag on. This will bite many owners and investors over the coming months as they lose properties or have to sell at far steeper discounts.

So, as you wait for things to sort themselves out, what is the best way to make so COVID-safe additional money?

Stick to your numbers and find deals that you are confident will work. To keep up your income in the meantime, look for new ways to generate revenues and cash flow.

Best Transaction Funding has a deal to help you with this. Join our affiliate program and get a 10% fee on your referral’s transaction. If others are beating you to the deals, at least you can make money on all of those deals, without even having to do the work.

How does it work? Simply introduce a friend, family member, peer, client or other investor to the lending services of Besttransactionfunding.com.

The easiest and most convenient way is to automate this process with your own custom referral link. Send it directly to them, or post it online and let it work while you are sleeping and looking for other deals.

Otherwise, the introduction can be active, by promoting BTF’s 100% financing for real estate wholesalers on your social media and in online forums, texting and emailing your network, and recommending them when out there networking.

You can also email us to introduce your referral. You can also tell the referral to mention your name when they contact us, or for them to enter your name under “Referred by” and “Please specify” as they finish their funding request form.

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Sizzling Summer 2020 Gifts For Real Estate Investors

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on Thursday, 18 June 2020
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Summer is here. It is peak season for the real estate market. Here’s what you need and want to give to make the most of this historic couple of months.


This summer is shaping up to be even better than ever for US real estate. Buyers are motivated, and sellers are too. In spite of all the recent mayhem and disruptions out there, property prices still seem to be going up. There’s no telling how long that will last, but this is a pivotal moment for real estate wholesalers looking to expand and boost income, as well as those looking to get started investing.


Of course, no matter how strong you have been financially up until now, and how much or little you have to start with, more capital is certainly always welcomed, and can help speed up results and lower risks.


Fortunately, while other types of credit may be contracting, Best Transaction Funding is still providing investors with 100% financing for their wholesale deals.


We also offer Proof Of Funds letters and Verification Of Deposit (VOD) services to help investors get more of their house offers accepted and under contract.


From Father’s Day, through 4th of July and this summer we’re offering special deals, including almost 80% off our VOD service.


We feel it is one of the best ways we can help support those getting over the fallout of COVID-19, for those out there working hard to support their families, and to help good real estate businesses do even more to help others.


These are also some of the most meaningful and powerful gifts you can give to others this season. Whether it is a son, father, neighbor, or someone else in your community, imagine the impact of being able to tell them you can help them fund all their deals, with all the money they need to close and wholesale all the houses they can handle, as well as giving them the proof of funds they need upfront to get great deals under contract. That can be life changing for most people.


Check out the VOD deal here.


Even better, we’ll give you the gift of a healthy referral fee when you introduce others to this funding. Check out how to get started HERE.

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Who Is Buying & Selling Real Estate Now?

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on Thursday, 14 May 2020
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Where are the buyers and sellers to keep fueling your real estate wholesaling business?

We have been through some exciting times recently. Some investors are doing incredibly well, others are still struggling to find their feet again and adjust. It’s all about knowing who is buying and selling, how they are doing it, and what’s driving them. Know this, and you’ll find wholesaling much easier. Nail it and this could be your best year yet.


Who Is Buying Homes?


1. Flippers

Flippers are still buying. They need to in order to keep the money coming in. Though we may likely see more wholesaling than fix and flip due to market changes.


2. Landlords

Buy and hold investors realize that passive income is more important than ever before and they are looking for ripe opportunities.


3. Investors Who Are Expanding

Investors of all types, from those listed above to funds are expanding to new areas and property types to balance and de-risk portfolios.


4. Those Using Self-Directed Retirement Accounts

One of the biggest problems successful investors have is minimizing taxes. Retirement accounts can offer some relief. Yet, they often only provide real peace of mind, profitability, and maximum benefit in their self-directed forms.


5. The Wealthy Seeking Wealth Preservation

Wealthy home buyers have been very active. They are still buying up prime properties with big price tags. They see it as being safer than stocks or cash in the bank.


Who Is Selling Homes?


1. People Fleeing The City

Between the virus, lockdowns and rising crime, many are urgently looking to exit urban cities for less crowded areas.


2. Old Financial Centers

High priced areas that relied on physical office buildings and local jobs have quickly become less attractive, and will probably see steep declines in property values. People recognize those markets have popped and it’s time to cash out.


3. Owners Who Can’t Keep Up With Bills

With tens of millions of workers freshly unemployed, many just can’t keep up with the bills. Many need a reset or to downsize.


4. Over-leveraged Landlords

Landlords who over-leveraged and overpaid, and had no reserves to weather the storm should be cashing out if they can. They realize they can’t just count on high vacation rental and occupancy rates.


5. Speculators

Those who were banking on easy end loans and appreciation to make money are finding it’s not there now. They may have to sell at steep discounts and find another strategy.

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Minimizing Taxes For Real Estate Investors

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on Thursday, 07 May 2020
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One of the biggest challenges facing real estate investors today is how to minimize taxes.


It is great to make so much money from wholesaling houses, but without some countermeasures you may find your taxes are going up just as fast as your income. With the 2020 extension for filing federal income taxes you may have pushed off this bill for a few more weeks. Here are some tweaks to make sure you pay out less and keep more of your gains this year, and every year.


Income tax Deductions

Make sure you are maximizing the amount of tax deductions you are taking. Don’t just over pay. One of the most obvious this year is taking the home office tax deductions. Others can include mortgage interest, education, health care expenses and charitable contributions.


Max Out Retirement Account Contributions

By now you should absolutely have a self-directed IRA or 401k account. You can also have them for your spouse and children. You may even be eligible to contribute to ESA and HSA accounts. You may still be able to get the deduction for 2019 and 2020 by maxing out deductions for both years. You can then use that money to invest in real estate.


Property Taxes

Property tax authorities are notorious for over charging each year and hoping property owners just don’t notice or bother to challenge them. This year more than ever you could be in a great position to cut these bills. Appeal your property tax bills and save thousands.


Harvesting Losses

Making investments in businesses that may show net losses for the next year or two can help offset any gains. Those paper losses can be used to offset future gains as well.


1031 Exchanges

Real estate wholesalers and flippers with too much cash can also move capital into more buy and hold, new construction and value add property deals, while continuing to defer taxes on capital gains under the protection of 1031 exchanges.


Go Offshore

The US has one of the harshest tax regimes on the planet. Thinking short and long term, this could be a smart moment to diversify into some offshore real estate assets. Especially somewhere you’d like to spend at least six months of the year in better weather, or retire. It could be a path to completely eliminating corporate and personal income taxes.

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