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7 Deadly Mistakes Wholesalers Are Making In This Market

by blogger1
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on Thursday, 01 August 2019
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Wholesaling just seems to be getting hotter and hotter. There are a lot of educators promoting virtual wholesaling, and droves of new investors seem to be taking to it. Some are making $100k a month. Others are still spinning their wheels and trying to make those first dollars.


No matter what scale you are operating at, here are some of the most frequent mistakes wholesalers are making now, and how to beat them to really get deals done, put more dollars in the bank and keep things flowing smoothly.


Taking the Long Route

There are so many marketing funnel and channel ideas for trying to get leads, find sellers and push out to buyers and raise money today. Some are great. Most are just really long detours and excuses not to just pick up your phone and do some prospecting and make some offers. Make money, then you can get fancy.


Follow Up Fails

The number one plague on the real estate industry today is lack of follow up. Realtors and wholesalers are getting plenty of inbound leads, even without a big investment or beautiful materials. They waste the majority of these by not following up. Sellers and buyers and lenders shouldn’t have to follow up with you. If you want the money, deals and sale, you’ve got to follow up relentlessly and fast. If you can’t respond to leads in the first all important 5 minutes, then you need to hire some kind of help.


Not Considering Other Exit Options

Finding cash buyers is great. There may still be many out there. Best Transaction Funding would love to fund your back to back closings on these deals. Though if you are getting a lot of other types of offers, don’t just waste the opportunities. Every lead should be treated like gold. Respond well. If they aren’t a fit for this deal, put them in your database for upcoming deals. If you are getting a lot of buyers wanting seller financing, maybe it’s worth taking some of those. Don’t get stuck in your model. Be flexible.


Not Analyzing Pricing Well

Whether it is greed or being out of touch, many resellers just seem to be asking for a lot today. They aren’t doing the math as a wholesaler, and what it will take for an other investor to acquire, renovate and exit that deal. Some ‘wholesale’ deals are being priced like new construction. Think about it. If someone can build a brand new place on a similar lot for what you are asking for a beat up rehab project, why would they? Especially if you are demanding all cash?


Not Knowing What You Are Selling

It is completely possible to flip houses sight unseen. Yet, if you don’t know the condition or what’s on title, you can’t price it right or pass that info on to your end buyer to make a good decision or offer. The more you can get a handle on repairs and the equity, the better you can present to your buyers, de-risk it for them and streamline  the resale transaction. All with far less likelihood of the deal blowing up.


Getting Cut Out of Deals

Unfortunately, there are a lot of greedy people out there. Both Realtors and investors keep finding buyers and sellers try to cut them out. Wholesalers are especially vulnerable when trying to do assignments or simultaneously closing using the buyer’s funds. Instead, do two transactions using transactional funding, so you become the owner and are the only path for them to get the house.


Not Empowering Your Team

If you are hiring people, and then micromanaging and spending more time managing than it took to do the job in the first place, just do it yourself. Save the time and money. Of course, it is far smarter to hire help and then get out of their way so they can do what they are the experts at.


Steve Jobs said. “It doesn't make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.”

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Introducing HomeNotes - Record notes and home photos on your Android, iPhone or iPad

by press
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on Friday, 06 May 2016
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The perfect home buyer app that lets you record notes and pictures as you tour a property. Review and share your reports with others from your Android, iOS device or computer.


- FEATURES -

Use standard room names or add your own custom names

Pictures can be loaded as you tour the property or loaded later

Share your reports with friends, family, or clients

Pre-filled valuation spreadsheets (mortgage calculator, ROI)

Agent version allows agents to view their clients’ activity

Quick 4-star rating

Access all your property reports from iPhone, iPad or computer



HomeNotes is free for the first 3 properties.

Pro Version with unlimited properties is a $1.99 / month subscription, and $4.99 / month subscription for realtor/agent version which allows you to invite clients and see their saves.


Subscribe now to HomeNotes and get $1 off the first month with code "BEST"!



 

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Is Wholesaling Illegal?

by blogger1
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on Thursday, 04 September 2014
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Some local municipalities around the country have declared "wholesaling" real estate as illegal.  They contend that selling houses without owning it first is a violation of the law and may require a license.


Not so fast...


 

PS: Apologies for the audio in advance.  As always, we try to give you the best content we can to help your business.  In case the audio is not clear, our guests are Maurice A. Thompson, the Executive Director of 1851 Center for Constitutional Law, and Vena Jones-Cox, aka the Real Estate Goddess.  Maurice's website is ohioconstitution.org and Vena's website is regoddess.com.

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HUD Transactions

by webhelp
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on Friday, 24 January 2014
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Case Study of HUD same-day, back-to-back transaction with BestTransactionFunding.com

How the B investor bought and sold a HUD property within 6 hours with the help of BestTransactionFunding.com


Using BestTransactionFunding.com Transactional Funding for HUD Transactions

Helpful tips in using BestTransactionFunding.com successfully with HUD same-day, back-to-back closings. How does one characterize our funding - cash or loan? Should the B investor bid for HUD properties as an entity or a natural person? And much more...
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CNBC Special

by press
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on Wednesday, 01 January 2014
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Investor explains how transactional funding can be used by flippers



BestTransactionFunding.com featured on CNBC

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Wholesaling: How Can You Market Property You Don’t Own?

by blogger1
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on Friday, 08 March 2013
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Can real estate investors market homes for sale that they don’t actually own yet?

This is one thing that catches investors off guard. The rise of transactional funding has made it easy to complete double closings and flip more houses faster with less risk but at the same time many don’t understand the complexities of marketing properties for sale that they don’t actually own.

So can you market a wholesale property that you have under contract for a fast flip and higher ROI using transactional funding or could that even be illegal?

It is first important to point out that this can be a legal issue. Each state has its own real estate laws and regulations and it could be argued in some cases that you cannot list or publicly advertise a home for sale that you don’t actually own yet.

Certainly doing this will drive some real estate agents mad, as well as some sellers when they see your sign in their yard after signing the contract and know they could have sold it for more money. There can also be problems if trying to list properties like this in the MLS and you could be required to have a license if you are selling other people’s homes.

Some buyers and their agents might think this also smells a little too much like some of the fraud that has been going on through Craigslist lately. Banks with REOs and short sales will also take a particular disliking to this if not hauling you off to court.

Fortunately there are some quick and simple fixes. The first is to get permission. This is something you ought to do anyway and will make reselling fast and for the most money a lot easier. Get an addendum executed that allows you to remarket, advertise and even show the property for sale when you go to contract. Many sellers won’t care at all. They want out or want their figure and that’s it.

Where and how you market these flips is also a consideration. Putting signs in the yard or posting ads with the address in the local newspaper or real estate magazine or putting a giant for sale sign in the yard can obviously ruffle some feathers.

However, this is often rarely a path that savvy and experienced real estate wholesalers need to go down. Remember that your best buyers (those that will move fast and be happy with the transaction) are other real estate investors, not retail buyers. A better move is to have a pool of secondary investors already lined up to buy whatever property you put on the table providing the numbers match their criteria. Then you don’t have to publicly market each individual property and can cut out a lot of wasted time, money and hassle to wholesale more homes faster and better profit margins.
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