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Is Your Real Estate Agent Helping Or Hurting Your Sale?

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on Thursday, 09 February 2017
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Are real estate agents really helping or hurting investors’ efforts to sell homes?

Many property investors and regular homeowners simply aren’t aware of how beneficial or harmful Realtors can be in the mission to sell their properties. How do you know if yours is doing their job? How do you spot the good among the terrible?

The Issues

Just as with investors, not all Realtors are perfect. But, there are great ones out there. They can offer a lot of value to those flipping houses, restructuring rental property portfolios, and searching more homes to buy and wholesale. Those that fail to operate ethically, don’t have the hustle, or simply are not tuned into current trends can really hurt the sellers they represent, and be a major roadblock for buyers.

Unfortunately, some agents still hold out on presenting offers; either to wait for the one which offers them double commission, or because they don’t understand them. Some are just slack at returning inquiries and following up. Others don’t have the motivation and hustle to try and make deals work and make the most out of every lead.

This doesn’t serve anyone well. It can result in properties rotting on the market, owners losing homes or failing to get the most money in a timely manner, and it can choke the pace of the market too.

What to Look for in an Agent

To beat the above issues real estate investors need to select the agents they work with carefully. Don’t just hit Google or go based on who has a lot of yard signs out. Don’t base the choice on years in business either.

Instead, look those you can build a relationship with. Those that put values and service first, those that are hungry and active, and those that can answer questions about quirks in the market or can find out fast.

Test them. Do they answer calls on their properties fast? Do they take offers and try to make them work? Do they know the requirements of local associations, building codes, and mortgage lenders?

Always do a little mystery shopping before selecting an agent to help you. Then if you list with them, do it again. See how well they are serving potential buyers for your property. If they aren’t presenting you offers, responding, or being courteous, you may have a case to fire them and find someone better.

What have you found is most and least important in choosing an agent? Let us know your favorite investor friendly agents around the country on our Facebook page

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding for real estatewholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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Why Every Realtor & Buyer Needs an Alternative Lender

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on Wednesday, 27 January 2016
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Every real estate agent and home buyer needs to have a hard money and transactional lender in their pocket…

Even at the best of times, the best looking real estate deals can fall apart. Mortgage financing issues are usually the culprit. At last count Forbes and Zillow have stated that one third of real estate contracts fail to close, even years after the pit of the crisis. When deals fall apart it can seriously disrupt the finances of real estate professionals and businesses. It can impact their reputations, and even turn clients off to the market. For their home buyer and investor clients it can be financially catastrophic, not to mention incredibly stressful. Having a backup financing source can help save deals, and dramatically cut down fall out ratios.

When to Bring Out Your Secret Lending Weapon

Simply walking away when deals get shaky isn’t the answer. It is never easy. But it is those that keep pushing forward and that find solutions where others give up that are the success stories.

When lender issues come up, attempting just to scoot sideways and to shop around with other conventional mortgage lenders and banks is unlikely to make a difference. In spite of the upfront promises most of these lenders all have the same criteria and underwriting requirements. In order to bring deals back from the brink, save buyers from major financial loss, protect them from lawsuits for breach of contract, and to create ongoing win-wins it can be wise to have alternative lenders to refer them to.

While every deal may not be saved in exactly the way it was originally written a hard money lender or transactional lender can preserve deposits, and profits by offering the funds required to close, and fast.

While these loans can be closed in days, especially if you already have title, appraisals, and inspections done, the sooner the switch is made the better.

Alternative Loan Solutions

In many cases a hard money loan may be used to close quickly and save the deal. The terms may not be as attractive as original options, but do the math, and with a refinance in the near future it will often be the best option.

This is certainly true for those flipping houses. Transactional funding may also be used to wholesale these properties. In many cases the profit margins may be just as good for clients as if they had gone through the process of holding and renovating a property.

So when deals start experiencing issues – don’t panic; turn to your alternative lender quickly and pull off a great deal for everyone.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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Real Estate Wholesaling Is For...Billionaires

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on Thursday, 07 January 2016
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New data reveals who the biggest house flippers and real estate wholesalers really are…

There are a lot of misconceptions about flipping houses, and wholesaling in particular. The industry and gurus are often a big part of this. When many people hear “wholesaling” or “flipping houses” they now think of fraud, Vanilla Ice, infomercials, “no credit, no money, no experience,” promises offering newbies the chance to make big money fast in a couple hours a week. These things are not necessarily totally incorrect. But the numbers over the last 12 months show quite a difference between perception and reality.

2015 stats and transaction data sets from Property Shark show celebrities renovating and flipping luxury houses, hedge fund managers turning over prime properties for millions in profit, and top executives putting their cash into real estate, and reselling repeatedly.

There is no question that wholesaling real estate can be a great way to enter the game, and to start hacking your way to better finances. But it is not just for newbies, or those trying to break their way through from the minimum wage or middle class rat race. It can be a great full time and long term business and investment strategy. Even for the 1% it is proving to be a highly desirable way to augment careers and other efforts to generate income and wealth.

For the sophisticated individual flipping houses provides essential diversification, big leaps in wealth and net worth, a solid asset when other things aren’t going as well as planned, and it’s fun. This is not a strategy that just yields a few thousand dollars to amateur middlemen. Consider that prices in 3 New York City neighborhoods leapt up by $3M in the last 12 months. Previous data from RealtyTrac has shown average profits from flipping houses in some US cities averaging $60,000 to $100,000. That’s just pennies compared to some of the high-end luxury flips happening in LA and NYC. Some are being flipped for tens of millions of dollars, and when it comes to commercial real estate; even a hundred million or more in profit.

Hedge fund managers, CEOs, talk show hosts, and actresses are flipping houses, condos, and co-ops in top markets, and others are turning over pools of single family rental homes. The main difference in their strategies, aside from the price tags, are the use of professional designers, and real estate agents, and leveraging the protections of LLCs. They take this business seriously, and that seems to be paying off, big time.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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6 Sources for Wholesale Real Estate Deals in 2016

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on Wednesday, 23 December 2015
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Where are the wholesale real estate deals to be found in 2016?

As the US economy and housing market continues to improve many real estate investors are wondering where they are going to find good deals to buy over the next 12 months. The National Association of Realtors says we are finally returning to a ‘normal’ market after over a decade. According to NAR that includes very few foreclosures and short sales in the marketplace. So where should value seeking real estate investors be searching for new properties to buy?

1. Real Estate Wholesalers

This might seem quirky, especially if you are a wholesaler yourself, but don’t discount this source just yet. As hard money and rehab lenders ease up and offer high LTV loans it’s easier than ever to flip house deals from wholesalers. Many also have invested heavily in dominating local auctions, marketing to motivated sellers, bank distress sales, and have negotiated incredibly low priced deals. Others attract many leads which aren’t in their immediate area and are happy to refer them. This can create a lot of efficiency for investors.

2. Aging, Long Time Owners

Between recent equity appreciation and the new rising interest rate environment this is the ideal time for many aging real estate owners to sell. Those that are already in retirement, and have owned their properties for a long time may not want the hassle of managing any more, and probably have a sizable amount of equity. Those without any heirs of their own may be happy to let properties go at a discount to good people that share their values.

3. Your Landlord

There are a large number of real estate investors who are also still renters. If this includes you then don’t overlook asking your landlord if they are ready to sell. If you don’t and they list it with a Realtor you’ll be kicking yourself.

4. The MLS

Many real estate investors snub their noses at the idea of flipping houses on the MLS. However, a look at what others are accomplishing by doing my change your mind. If you can make $50k in a few days by picking up ripe deals this way, why not?

5. Expired Listings

Even though many properties have been selling incredibly fast, others have been rotting online for so long that Realtors are losing their listings. Sometimes this is because they were too aggressively priced. In other cases it is they were poorly marketed, or the agents just failed miserably at responding to leads. These can be highly motivated sellers eager to meet a real buyer.

6. Inherited Property

It is important to be sensitive in this niche, but many heirs to real estate are eagerly looking for a cash buyer that can move fast and help them liquidate estates. If you haven’t already consider adding this niche to your portfolio in 2016.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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The Pros & Cons of Flipping Houses on the MLS

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on Thursday, 10 December 2015
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An increasing number of real estate investors appear to by flipping houses on the MLS. What are the pros and pitfalls of this strategy? How can it be mastered?

While some inexperienced investors and onlookers will argue that it can’t be done, a five minute review of properties on Realtor.com clearly shows investors acquiring and flipping houses on the MLS with big markups. But is it as easy as it looks?

The Advantages of Flipping Houses on the MLS

Some may snub their noses at the thought of sourcing or selling real estate deals via the MLS, but others appear to be making $50,000 a pop in just days doing it. Sourcing properties from the MLS significantly simplifies the search process. It’s a constant feed of potential deals. These are active sellers too, which makes the process of negotiating and securing a contract much easier than having the extra step of trying to convince and owner to sell too. The MLS offers significant volume, with many properties near and far to pick from. On the flip side it puts a whole army of agents to work on selling your deals for you. As for the costs of working with real estate agents; once investors do the complete math the numbers may not ultimately be that different from direct mail, cold calling, and other marketing methods.

The Pitfalls of Flipping Houses on the MLS

The biggest issue of selling flips on the MLS is often that potential buyers can see recent transaction and listing history. They can see if you just bought this property for $50,000 less yesterday. They may not know how hard you worked to negotiate, any improvements you are making, or other ways you’ve added value. Regardless of whether you are offering a fair deal or not, some will snub your deals out of principle. Unless you negotiate commission rates with Realtors or use a flat fee MLS service then cost may be an issue. This can also create valuation and financing issues for end buyers. Their lenders are going to do their homework too.

Solutions

Flipping houses on the MLS works, but it has quirks too. Know when to use it, and how to master it.

One way to maximize the upside is to just use the MLS for one side of your flips. At a minimum it can be a great tool to supplement other channels. Just make sure visible data is edited rapidly, and when needed connect buyers with alternate funding sources or use hard money when you can’t use transactional funding.

 

Authored by BestTransactionFunding.com; the leading source of transactional funding and hard money loans for real estate wholesalers, where 100% financing, and saying “Yes” is what we love doing all day long.

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The Pros & Cons of Flipping Airbnb Rentals

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on Thursday, 27 August 2015
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There appear to be huge premiums to be found in flipping houses and condos that are leased via Airbnb. So is this the new power tool for investors, or are there dangerous pitfalls which are being overlooked?

Airbnb Rentals

Airbnb is a short term rental ‘app’ allowing property owners and renters to lease all or part of a space to guests on nightly, weekly, and monthly rates. With over 1.5M listings in 34k cities the service is rapidly disrupting vacation rental markets, and has become a popular alternative to hotels and long term annual rentals.

Airbnb is changing the dynamics of the real estate market. On one hand it is reportedly adding millions to the local economies where it has a strong presence. On the flip side it is dramatically driving up both local rental rates and property values. Many real estate investors are finding this style of renting hugely popular. It means almost zero management versus old school practices, and there is a lot more cash flow. It isn’t just for buy and hold real estate investors either. If flippers and wholesalers secure a property line up a strong income stream with pre-booked Airbnb rentals they can almost turn over a turnkey product for a premium exit price, without any of the ongoing headaches. For many this realization can seem like a “Eureka!” moment. But what are the real pros and cons of this strategy?

The Pros of Flipping Airbnb Rentals

High Returns

Airbnb rental rates are producing amazing returns for those that get good deals on real estate. It is almost bewildering the rates that some units are fetching. In many cases they appear higher than local hotels.

Cash Flowing Property

Without Airbnb it seems it is getting harder to find positive cash flow in some neighborhoods. And instead of having to gamble on securing tenants or what real rental rates might be, selling in this way ensures cash flow for the end buyer.

Easy Management

Say goodbye to expensive and intensive marketing, tenant screening, and evictions. Airbnb makes it about as easy as it can get to lease a property.

Better Resale Product

For those flipping houses this strategy can result in a much more attractive product to resell. That also means premium profit margins, and faster resales.

The Cons of Flipping Airbnb Rentals

Legalities

Airbnb style short term rentals aren’t legal or allowed in every city, community, or building. Skirting the rules can be a major problem.

The Airbnb Effect

The Airbnb effect isn’t all good. Many are complaining that it is devaluing their buildings and neighborhoods due to wild party crowds. In other cases it is pushing year-round renters out because it erases affordability.

Consistency

Even though real estate investors may be able to successfully pre-lease units for a couple years, most won’t be able to guarantee long term cash flows or full occupancy.

Not Everyone Wants a Rental

The real downside is that not every end buyer wants a rental, nor a short term rental. Some are stuck on old-school annual leases, or want to remodel and resell properties, or use them to live in. If the property is pre-leased for several months next year it is going to make it harder to flip to these buyers.

So will you Airbnb it, or not?

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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Debt vs. No Debt Real Estate Investing

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on Thursday, 09 July 2015
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Is it wiser to use debt leverage to invest in real estate, or pay off all of your bills and stick to cash purchases?

This is an increasingly popular question among aspiring real estate investors. Many have been turned off to all forms of debt. So they question whether they should wait to invest until they are debt free, and then stick to buying properties for cash. Others find this idea absolutely insane given the speed, high returns, and apparent reduced risk of using other people’s money to invest. So who is right? Which method is right for you?

Leverage: The Good, Bad, and Ugly

Financial leverage is unquestionably the most powerful tool available to investors. It can help lower and spread risk, speed up results, and maximize cash on cash returns. But it is also true that leverage can be dangerous is used poorly. If you are constantly in a zero equity position, have negative cash flow, and fail to squash your overhead so that you are truly and sustainably financially free, it is a recipe for disaster.

So leverage is important no matter whether you are starting out with millions or pennies. It is equally important not to drown yourself with debt either. Fortunately, there is a hybrid solution that will make both camps happy, and maximize their investment activity…

The Highly Leveraged Debt Free Way to Invest for Maximum Gains

By using transactional funding for flipping houses as a wholesaler investors can benefit from 100% financing from their deals, but can be debt free again within hours. Best Transaction Funding will provide up to 100% of the money investors need to acquire wholesale property deals that will be instantly flipped. By turning those properties around in days investors are never tied to long term (bad) debt. They make the maximum possible return, with the lowest risk, and enjoy the best of both worlds.

Then those lump sum cash profits can be used to pay off other existing debt like credit cards, car loans, student loans, and home mortgages on personal residences.

But…

Don’t wait. Waiting until you’ve paid off every penny you owe in borrowing right now is just an excuse to stall. That means missing many very lucrative opportunities. And you can’t afford that. Especially if you do have bills. Get started, make money, pay off your borrowings, and claim real financial freedom without being lumbered with long term debt.

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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Flipping Properties: Are You Taking Too Long To Turnaround Profits?

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Are you taking too long to flip properties?

How long should it take to flip houses? And what are the costly perils of taking too long to turn real estate deals around?

BloombergBusiness recently announced that it’s only taking a few years to flip NYC condos for big profits. Most wouldn’t consider that ‘flipping’. That’s more like buy and hold. In fact; you could probably build a few grand spec homes from scratch with that type of timeline.

In the past RealtyTrac has said the average turn time for flipping houses was 106 days. Redfin says that new home listings shot up 12% in February 2015. However, it also describes buyers “coming in like a lion.” A 44% year over year surge in home showings and a 36% year over year increase in signed offers suggests a looming inventory shortage. And the National Association of Realtors says the average Days on Market (DOM) fell to 89 days in March. That’s ahead of peak spring and summer buying season. So this number should fall even further.

Traditional real estate rehabbing is valuable and needed. And it can still be profitable in certain scenarios. But it may not be the fastest way to turn around deals. And clearly once a rehab is done there is no reason it should be taking real estate investors more than 90 days to flip these houses.

Check out these new hard money loans for fixing and flipping real estate

Meanwhile property wholesalers using Best Transaction Funding are flipping properties in just 1-3 days. They are able to do this because of the capital they are able to leverage, their strategy, and perhaps most of all because they focus on building buyer lists and pre-selling their deals. Let’s be honest; every day holding a property, and every contract signed brings some form of risk. If you don’t already have a concrete exit before going in, you are just speculating, versus investing.

With wholesaling you are almost out before you are in. That presents the lowest possible level of risk. Fixing and flipping is still great, but the more flips you do per year the higher your overall profits are. Do you want to flip your money 12 times a year, or less than once? There should be no reason to be flipping the same money less than four times a year.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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New Hard Money Loans for Real Estate Investors

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Best Transaction Funding is now offering access to hard money loans from $1M up to $50M.

Serious and experienced real estate investors can now leverage hard money loans from $1M to $5M from their favorite, trusted, financing partner.

Hard Money Loan Program Features:

  • High LTV possible
  • Terms up to 3 years
  • Interest rates from 10%
  • Use ARV
  • Past foreclosure or bankruptcy accepted
  • No limits on number of properties owned or mortgages

 

We Do Hard Money Loans For:

  • Fixing and flipping houses and small multifamily properties
  • Acquisition and seasoning of income property prior to refinancing
  • Access pent up capital in existing real estate portfolios
  • Purchasing distressed property

 

Hard Money Loans vs. Transactional Funding

Don’t worry; your favorite transactional funding lender is still providing the best transactional financing for instant wholesaling deals. New hard money loans simply add another financing options for experienced investors with a track record of success.

Use Transactional Funding When:

  • You are flipping houses in 1-3 days
  • You already have an end buyer
  • You need 100% financing

 

Use Hard Money Loans When:

  • You don’t have an end buyer lined up yet
  • You need fast funds with easy qualifying
  • You have a 1 to 36 month turnaround time, or window for refinancing

Click to request your Hard Money Loan Now!

Both options empower real estate investors to effectively act as cash buyers, increase their leverage while lowering risk, and close extremely quickly.

Contact us to apply for hard money loans today

For additional information see our Hard Money FAQ for more details and disclaimer.

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing and saying “Yes” is what we love doing all day long.

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4 Real Estate Wholesaling Sweet Spots + End Loans

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2015 is shaping up to be a sweet year for real estate wholesalers. New inventory, more buyers, and new loan programs are all aligning to make flipping houses a highly profitable endeavor for those that know where to look.

Finding Wholesale Deals

There’s no shortage of wholesale deals out there. If you are coming up short handed check out these four options…

Zombie Foreclosures

It’s no secret that foreclosure activity has been spiking. However, there are still tens of thousands of distressed properties that remain in limbo. In many cases owner – borrowers left years ago believing they had already been foreclosed on. Many are finding out that the bank still hasn’t followed through on repossessing them. That costs money and adds liability. That means a massive pool of properties which aren’t even being marketed for sale. They shouldn’t be too hard to spot. And by tracking down the owner or lender holding the non-performing mortgage debt great win-wins could be struck. And with no competition.

HUD Homes

HUD auctions are still churning out deals. Many have already had some rehab work done to them, and the earnest money requirements are minimal. They can be a great choice for those working with minimal capital.

Foreclosure Hot Spots

While national real estate statistics may mask the reality on the street, there are many counties battling foreclosure as if it was 2008 again. RealtyTrac reports foreclosure particularly high in MD and NV. In some counties around 1 in every 80 units is in some stage of foreclosure. That’s a lot of potential wholesale deals.

Areas Receiving Deferred Investment

There’s a 600 home community on the Delaware shore that is the perfect example of this. According to local custom home builder and renovation firm Turnstone Builders; this 3 mile stretch of beach is now receiving the benefits of a new $63M federal investment. The beach widening project is reportedly doubling local home asking prices from around $500k to $1M. And the project is just beginning.

Why Should Real Estate Wholesalers Care about End Loans?

CT Homes’ JD Esajian of the Flip This House TV show just launched a new two part report on The Number One Financial Threat in America. The report highlights how renting is becoming unsustainable, and how much cheaper it is to buy homes. WA real estate expert Joe Tafolla highlights how thousands of individuals can qualify for no down payment financing, and tens of thousands in down payment grants. Even if they are recently out of foreclosure, bankruptcy, short sale, or have credit scores as low as 640. Many others could find a combination of hard money loans and seller financing the way to get back into homeownership.

This can help wholesalers boost direct sales to retail home buyers for maximum profit, quick flips, while helping to provide affordable housing and reduce the hardship of skyrocketing rents.

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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4 Unique Advantages of Wholesaling Houses

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on Thursday, 30 October 2014
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Wholesaling houses has many obvious advantages. It also offers some unique and very powerful benefits many real estate investors at least seriously underestimate, if not completely overlook.

So what are these advantages of wholesaling compared to rentals or fixing and flipping houses?

1. Eliminating Disputes with Neighbors

When rehabbing homes to flip or hold as rentals neighbors can generate significant stress and become obstacles. Regardless of how well investors try to select tenants when holding properties, crazy and ignorant neighbors can cause all types of bizarre disputes which can lead to losses of income, property damage and more. Even in high end neighborhoods landlords can face the likes of Justin Bieber moving in next door and causing tens of thousands of dollars in damage by hurling objects at your investment property. This can all be avoided with wholesaling.

2. Compounding Gains Faster

Even the best rental homes, high performance mortgage notes, and rehabbing can mean sluggish returns compared to wholesaling. Not only can property wholesalers put down less money, which dramatically boosts cash on cash returns, but with lump sum gains being able to be reinvested and flipped multiple times per month on an exponentially growing basis that annual and lifetime returns on wholesaling can seriously put other investment strategies to shame.

3. Eliminating Holding Risks

Even house flippers fixing up and reselling properties in a period of weeks or months face major exposure to risk. From hurricanes and earthquakes to value dips due to neighboring foreclosures every hour properties are held means weathering a barrage of threats. Insurance is one of the necessary evils, but talk to a handful of residents in areas hard hit by hurricane Sandy or in storm prone South Florida and you’ll no doubt hear plenty of nightmare stories about how insurance companies fail to deliver.

4. Easy Access to 100% Financing

One of the really beautiful benefits of wholesaling houses as a real estate is easy and streamlined access to working capital and 100% financing. Via Best Transaction Funding wholesalers can finance their whole deals without asset verification, having great credit scores, or even having another job.

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Hard Money Loans Vs. Transactional Funding, Which is Better?

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on Thursday, 09 October 2014
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Which is the better type of financing for real estate investors today; transactional funding or hard money loans?

Are hard money lenders still relevant? Why might some property wholesalers opt for hard money loans even though they have been using transactional funding successfully day in and out for years?

New Hard Money Loans, New Applications

Hard money has changed a bit over the last two decades. The application process is a little different, and new regulations have made hard money loans slightly more challenging than they used to be. However, hard money mortgages are still the easiest mortgage loans to obtain and continue to be an essential tool for all types of real estate investors.

It was recently revealed that former fed chairman Ben Bernanke hasn’t even been able to refinance his own home despite being able to earn $250k in less than an hour for speaking engagements, and has a signed book deal. So clearly equity based lending like hard money remains absolutely invaluable in the market, for an even wider base of borrowers and buyers, and will continue to.

While hard money can still be used for flipping houses as in the early 2000s and before, prior to transactional funding making it to the mainstream, there are also new applications and reasons to use these loans.

This includes:

  • Fixing and flipping houses
  • Releasing pent up equity
  • Speeding up property acquisitions
  • Less paperwork
  • When investors can’t pass up on a great deal but don’t have enough liquid cash or an end buyer in place yet
  • Buying time to get properties performing again, to obtain better long term financing or resell at even higher prices and profit margins

The Advantages of Transactional Funding

When hard money lenders exited the industry as the market began to fall apart in 2006 lenders like Best Transaction Funding stepped up, and into the market to serve real estate investors in their greatest time of need.

Previously this type of financing was only available to a few very privileged real estate investors. Yet, instead of shrinking or tightening up guidelines transactional funding became one of the best, and virtually only ways to fund wholesale property deals.

Transactional funding does a lot of what hard money used to do, and private money has done with, but with organized transactional lenders offering ease, systematization, and scale for real estate wholesalers serious about scaling to substantial volumes of business.

It couldn’t be easier to use. Find your property, circulate the deal to your list, close with 100% of someone else’ cash, get paid, and repeat.

Transactional funding offers far easier qualifying, lower overall borrowing costs, and is great when you don’t want to deal with the additional paperwork and time of hard money.

Still, both forms of real estate investor financing are absolutely critical, essential and beneficial for investors at different times.

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Real Estate Wholesaling: How to Find the Buyers and Win

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on Thursday, 28 August 2014
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Winning big in wholesaling houses is increasingly becoming about having the buyers. So where are they, and how can real estate investors harvest vast amounts of end buyers for their deals?

At the peak of the last housing boom some wholesalers were pocketing $1M a month flipping houses. Homes could literally be picked up on the open market and turned for $50,000 to $100,000 spreads without lifting a hammer to any DIY work. Those that made the most were those that had the buyers lined up.

While end buyers may be a little savvier, informed and demanding today, and asset prices are rising again, there will be no shortage of deal volume for those with significant pools of ready and qualified buyers.

Some housing markets have continued to see foreclosures increase for the two years through mid-2014. Even strongholds like Southern California which had reported default activity slowing, was revealed to have seen a new uptick in foreclosures in the summer, according to RealtyTrac. There are still plenty of deals from HUD, auctions, in bulk from other investors, and even the MLS, many just coming online after sitting vacant for years. However, even as these prized distressed property types fade, robust appreciation and demand will keep wholesalers flush with inventory and potential deals.

News this week from one of the new conduit lenders providing blanket mortgages for single family rentals, that it is slashing underwriting requirements on multifamily loans is likely a trend which will continue to spill over to the residential home loan market. Giving the green light to borrowers with charge offs, bankruptcies, foreclosures, and credit scores as low as 600, we are definitely approaching subprime underwriting territory again. This will open the flood gates for both first time and returning home buyers.

With easy access to unlimited flash funding for wholesaling from BestTransactionFunding.com the only obstacle between investors and their goals is having buyers in place.

So where are the buyers? How can wholesalers continue to compete as brokerages consolidate and strengthen branding, and Zillow begins rolling out its strategy in the wake of the Trulia buyout?

LIVE EVENTS

While many investors have retreated to their own caves, in front of giant monitors, and settled for webinars in recent years, live events continue to provide fertile ground for deal making. Attendees get pumped up by other speakers and are in the optimal zone to take action, while many are already flying in with blank checks to write for attractive acquisitions.

GROOMING RENTERS

Big thinking, forward thinking property investors shouldn’t ignore renters. The competition you envy for the business they are doing today, is often a result of years of planting seeds and fertilizing. Take note. Get ahead, and start grooming entire complexes of renters to become home buyers over the next 24 months. Reaching out through simple mediums such as door hangers and home buyer education seminars can do wonders.

TAP THE REAL ESTATE GURUS

Many real estate investing ‘gurus’ have gone to all the trouble of developing education programs, creating seminar materials, writing books, and going on the speaking circuit just to build massive deal funnels. Of course, very few of their students will be top producers. So stepping in with a silver platter of good wholesale deals could be just what they ordered. Plus, they may have incredible resources for buying future deals.

SHAKE UP YOUR ONLINE MARKETING

To win in online real estate marketing today, you’ve got to be willing to be different, and flexible. Facebook has officially snubbed real estate marketers, and Google will constantly change its search algorithms and rankings. Forget all the rules (well most of them), and ‘must-haves’ and just focus on solving problems, being interesting, and being unique. You can always bulk up your inflow of buyer leads on-demand, at any time with Google Adwords.

GET HYPER-LOCAL

The irony of the internet, and the billions being spent on online real estate marketing development, is that it is essentially all trying to take us full circle back to being local and personally connected. Online marketing is great, often can produce the best ROI, and can be essential when working long distance. But, if investors got out a little more, left their devices at home and had more conversations, engaged in more community activities, and even just had more people over for dinner or to weekend BBQs and pool parties, they might find they are able to develop masses of new relationships with local buyers, and create bonds so strong no internet company is going to break, regardless of how big it is.

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Zillow Merger Highlights Huge Value in Real Estate Blog Market, New Twists for Wholesalers

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on Thursday, 31 July 2014
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The $3.5B Zillow takeover of Trulia, and consolidation of two of the largest online real estate platforms guarantees to have some ramifications for everyone engage in real estate. So what does it mean for property wholesalers, and how can they use it to their advantage?

The Rise of ‘Zulia’

Bloomberg coverage reveals the massive merger will deliver almost $1B a year in revenues for Zillow, and enable it to capture almost 90% of online real estate related search traffic.

A third of readers at industry publication Inman News believe it may be a good thing for the industry. Yet, over half are fearful that it could have negative fallout for professionals and consumers.

But, forget the rumor mill; what does the Zillow – Trulia consolidation mean for real estate wholesalers in the trenches?

Coming Soon…

One of the biggest concerns over the new giant dubbed ‘Zulia’ by the press, is the monopoly could dramatically increase online marketing costs. Zillow has made no secret of the fact it wants to grab as much of the $27B annual real estate marketing pie it can. As the main go to source for advertising and viewing homes (if consumers will ever trust it that much, in spite of flawed products) it could have the power to command a lot of online traffic and charge big fees for listings.

While many wholesalers may not use the MLS for flipping houses, Premium Zillow Broker, Sandra Allen of Metro Brokers Carolinas has announced the firm will assist property sellers in leveraging the platform’s ‘Coming Soon’ listings feature.

Billion Dollar Real Estate Blogging

G-Code Magazine was quick to pick up on the data showing each Zillow visitor is worth an estimated $89, and how much of the website, and its new companies’ traffic is drawn by blogging and articles. Considering the number of visitors the Zillow Blog, Trulia Blog, Active Rain, and RealEstate.com’s advice sections attract, each piece of content could be worth well in excess of $100,000. And, RealEstate.com, and Trulia have been investing in it heavily. This may explain their 76% annual growth, which far outpaced Zillow’s, and may have left Zillow no choice to buy Trulia, or be bought out by them next year. In which case we would have a ‘Trillow’.

While many real estate wholesalers may not be able to afford upwards of $200 or $300 for freelance writers to craft daily blogs at the beginning, the value is clearly there. Content is going to be the best marketing tool most wholesalers and small to mid-sized real estate investment firms, and Realtors have at their disposal.

Through better keyword, selection, honing in on targeting local and niche traffic wholesalers can capture high quality web traffic and real estate leads. However, they are going to have to shake the habit of crusty self-promotion, and cookie cutter content, and get serious about delivering on what consumers are really interested in.

Too many say they can’t afford quality content right now. They should be asking if they can’t afford to invest in quality content now – how will they survive and grow to be able to do it later? Quantity is great, but quality still rules. Fewer, better posts, with more circulation via social and email blasts might be the best strategy.

For many of those reading this - Zillow just helped you get free content! With rising cost of other types of online real estate marketing, other small and mid-sized real estate firms needing help, those that work together to collaborate could make a significant impact. Think guest posts, and collaborative articles, and content exchanges between various vendors, local companies, and real estate professionals.

On Target

On the subject of quality, Zillow has been plagued by a series of less than highly praised products and moves. There is the extremely controversial ‘Zestimates’, bold claims of perfect credit visitors, incredible inaccuracies in home listing data, and major loses in new customer acquisition practices. Perhaps buying other more profitable companies with better products is the only way for Zillow to stay afloat.

However, in the meantime it means wholesalers have a ton of room to win customers and lifelong business partners by doing great business. Provide accurate ARVs, repair estimates, and deliver good deals, and no matter how much noise the competition makes you’ll gain all the repeat business, and referrals you can handle as a property wholesaler.

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5 Best Ways To Reach Home Buyers In 2014

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on Thursday, 12 June 2014
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What are the best methods for reaching home buyers for flipping houses in the current market?

Real estate wholesalers may be spoiled with vast amounts of discounted inventory, and unlimited capital via the best transaction funding lenders today, but these opportunities only turn into cash profits when flipped and resold.

So where are the buyers?

The recent National Association of Realtors Home Buyer Profile report offers some excellent insight into how buyers are searching for homes today…

The Top 5 Ways Buyers Have Been Finding Homes Are: Online website, Real estate agent, Mobile or tablet search engines, Yard signs and Open houses.

So what are some of the best ways to capitalize on these channels to reach more buyers and wholesale homes faster?

When it comes to winning online it is clear that SEO is still vital for connecting with buyers of all types, if not one of the top power tools for selling more homes faster. However, Google has made no secret of the fact that it far prefers new mobile responsive websites, even above mobile specific sites.

Networking events and meet ups can be great for connecting with Realtors. While these professionals may often be viewed as competition, they can also make great business partners. Consider that 92% of home buyers in 2013 used a combination of online home searches AND real estate agents.

Offline marketing can still work, but property investors need to increasingly improve on their tactics and find ways to both stand out from the pack and increase conversions. For example; this might include linking yard signs to mobile apps and hosting open houses as networking events or auctions.

 

Don’t let leads slip through the cracks. List building is vital for long term business success and maximum profitability.

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Revving Up For The Summer Real Estate Rush!

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on Tuesday, 22 April 2014
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It’s time for real estate wholesalers to start revving up for the peak summer rush. This is the season which can make all the difference for investors. It’s those that recognize this and capitalize on it, which will gain the most.

Real estate investors who are flipping houses can’t afford to underestimate how important summer is to them. There is a lot of both buying and selling of homes which can make each prospect worth a lot more. Like the stock market much of the gains in real estate are made in a few months. Those that win big in summer will lead for the rest of the year. Some may even make enough to kick back and head to the tropics for the colder seasons ahead.

Go in strong, finish strong.

Time to start prepping is now. Waiting till summer is here and trying to wing it or telling yourself you’ll put in extra hours then and work harder, may not only be a poor use of time and resources, but ineffective. It’s a lot better to work smarter in advance.

Key to wholesalers winning during this peak market season is knowing who is strong in the market, and what’s most important to them.

Foreign buyers on vacation, families moving in between school years and workers relocating are all major forces in the market.

They are on a time crunch, and need to act fast or not at all. To win their business investors need to serve up the info they need to make a quick decision, make it easy for them to sell and buy, and get to know and like the area fast. Being able to connect them with equally great and loyal third party services for a streamlined and seamless transaction is also critical. All of these factors may be far more important than price during this peak season.

Get the edge on the competition and win minds and the business even before they are ready to make a decision with themed blog content, reaching them overseas early directly with Adwords or through affiliates and look to forge strategic partnerships with corporations that have the handle on many movers.

Finally, it should go without saying that having financing lined up through BestTransactionFunding for plenty of liquidity will enable wholesalers to fully capitalize on their volume potential during these months.
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6 Top Reasons To Be A Real Estate Wholesaler In 2014

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on Thursday, 03 April 2014
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2014 is an incredible year to be wholesaling properties. There may be other ways to earn a buck, but when you dig in, there is nothing quite like wholesaling…

Sure you could get a day job, maybe a night job to make ends meet too. You could try your hand at being a DIY landlord or even being a Realtor. Yet, few of these options can deliver the benefits of flipping houses as a property wholesaler. Here’s why…

1. Easy Money

Some real estate investing gurus may make flipping houses sound a little too easy sometimes. However, wholesaling is really as simple as it gets, not only in terms of real estate, but work in general. If you’ve ever taken a gig in a fast food restaurant there are far more rules and precision required to flip burgers. Why wear your fingers to the bone 18 hours a day when you don’t have to?

2. Big Paydays

One of the greatest benefits of wholesaling, even above all other forms of real estate investing is the big lump sum paydays it can provide. For most individuals, even if they have a terrible month financially just one wholesale deal can turn everything around.

3. Scheduling Flexibility

Sadly even most of the best paying jobs and most sought after job titles today come with extreme hours, and working holidays and weekends. Time is the most precious thing we have. Wholesaling allows investors to take important days off, make it to those baseball games without fail and without bankruptcy, and makes for a far more enjoyable way to live.

4. The Opportunity to Help Others

Wholesaling houses is also a great opportunity to provide tangible help to others. Scooping up deals on distressed houses isn’t just about finding opportunistic profits and pay days. It provides a much needed service to motivated sellers and done right can be a very welcome and valuable service.

5. Helping the Economy

Each home flipped also helps to improve the blight in local neighborhoods, helps to create jobs and revenues and boosts the overall economy which helps everyone.

6. Low Risk

While the U.S. and global real estate market may be rebounding well few have the stomach for risk today, even wealth investors. Wholesaling, especially when using leverage from BestTransactionFunding.com is about as low risk as could ever be hoped for, with incredible upside profit potential. Why even consider anything else?
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Real Estate Pushing New Surge In U.S. Millionaires

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on Thursday, 20 March 2014
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The proof is in – real estate investing in creating a surge in new U.S. millionaires…

Research from Fox Business and the Spectrem Group’s Annual Market Insights Report 2014 shows a dramatic rise in wealth. So just how rich are Americans now and how are they making so much money in what is supposed to be a ‘tough economy’?

According to the stats the number of millionaires in America actually hit a record high in 2013, up almost 2.54 million from 2008.

More notable numbers include:
• ‘Mass Affluent Households’ seeing an increase of 500k joining their ranks in 2013
• 352k more Americans reach Ultra High Net Worth status from 2008 to 2013
• Those worth $25M or more rose by 10%
• These figures do not include personal residences

Considering real estate has really been the only horse running in the race over the last few years it is clear that much of this wealth is a direct result of real estate investing.

The really great news for those reading this isn’t just that there is a lot more cash out there and end cash buyers to flip homes to, but that the housing market is really just warming up.

This means plenty more deals to be done in the years ahead. With big private equity bowing out and turning to funding rental property landlords to help them rehab and expand those wholesaling houses will not just find more bargain house deals coming online but an eager audience to sell them to fast.

The only missing pieces of the puzzle left for those that aren’t members of the above high net worth groups, and for those on them that want to get to the next level is to build better buyers lists and to tap into Best Transaction Funding to crank up the volume and rocket their wealth while the stars are aligned.
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Property Wholesalers: Are You Capitalizing On Tax Refund Season?

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on Thursday, 27 February 2014
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Tax refund seasons is here again and for some property wholesalers there is a huge windfall in sales and income to be had.

Tax season may not be the favorite time of year for many real estate investors. Especially those that haven’t been organized with record keeping and failed to institute a tax plan for the year, again. Still, regardless of the extra paperwork burden this can be one of the best times of year for making money from flipping houses.

There is going to be mountains of cash flowing out into the public’s hands over the next few weeks. The IRS shells out billions in refunds each year. In fact it has pumped out more than $132 billion in bogus or overages in the last 10 years alone according to Forbes.

This means the public is flush. Many may have already dedicated their tax refund dollars to buying a home or expanding their rental property portfolios but haven’t picked out a property yet. The rest, if not seized on is likely to be blown in hours on day trips, frivolous shopping and new cars. In fact, given the amount new cars devalue as soon as they are driven off the lot this could be the single biggest drop in wealth most see in their lifetimes, unless they are car dealers of course.

So this is a great time for wholesalers to advertise their product and services and move more houses.

It’s also a fantastic and relatively easy time to forge new strategic alliances and referral partnerships too. There are thousands of CPAs out there looking for business right now, and they have a lot influence on where that money goes, know who has it, who’d like to lower their taxes next year and who needs to bury it in real estate.

So think themed ads, social media outreach and get out and network in person.

Then ramp up your acquisitions and leverage Best Transaction Funding for fueling all the increased volume you can handle.
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The Twitter IPO For Real Estate Wholesalers

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on Friday, 08 November 2013
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What does the massive Twitter IPO mean for real estate wholesalers?

Today saw the launch of the long awaited and hugely hyped Twitter IPO. So what does it all mean for real estate investors? Good, bad, ugly, or the best news of the year?

Twitter’s IPO winded up being a pretty significant success. At least it received a far warmer welcome and better reviews than Facebook’s. Surprisingly the IPO became the second largest internet IPO, beating out Google.

While the social network’s IPO saw share prices soar some 92% in the first day of trading, they summarily fell from the sky like a winged bird; winding up below opening price within hours.

Further commentary from some of the top tech analysts chided the theater as another indicator of not only IPOs, but tech stocks as a whole being “overblown” and about ready for a down cycle.
The lessons here are clear. Stocks are extremely volatile, and normally not in a good way. There is pretty much zero control over these investments and no protection from the downside. To top it off it appears the whole tech industry is primed for a pop.

So for real estate wholesalers this is firstly a resounding confirmation that you are on the right track. You might be extra proud if you flipped a $100 million of Twitter stock today and doubled your dough. Few probably did that, and few if any will anytime soon, if ever again. With flipping houses though, you can do far better than that every day and retain full control of how much you make. The icing on the cake is that the new real estate boom is just taking off and likely has another 7 to 15 years to enjoy.

Use these facts, plus the other advantages of direct real estate investment like leverage and tax benefits to highlight the benefits for your end buyers and investors to wholesale more homes to them.

The Twitter IPO will also certainly mean a shake up for advertisers with many new ways to wholesale homes via the social network. In addition to the powerful Twitter advertising options for small business already being offered and new additions like zip code geo-targeting and data sales, more will come and make it a more attractive platform for real estate investment companies.

Of course it might be fun to grab a single Twitter stock certificate to hang on the wall and show off, but the real money is undoubtedly in leveraging as much transactional funding as possible to capitalize on the current real estate market.
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