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How To Beat Your Competition To The Real Estate Deals

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on Tuesday, 17 October 2023
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This is a fantastic time to be wholesaling real estate. Of course, that means that many others are hunting for deals too. If you believe that there is a shortage of publicly listed properties for sale, that may make it even more challenging if you’ve relied on that for deals in the past.


Here are five more ways to out maneuver and beat your competitors to the punch.


Failing Competitors

Even though the real estate investment remains strong and attractive many started folding their businesses out of fear at the beginning of COVID, then as rates hiked.


Even though they may have stopped actively investing, many have portfolios of properties they are holding. Or at least sizable databases of seller leads.


You may acquire their company, their real estate assets at a discount, or their lead lists.


Insurance Agent Referrals

Insurance agents are among the first to find out when people find themselves in a crisis. That may be a health issue, a car accident, or damage to their properties.


In a few cases their clients may get payouts that make them strong cash buyers for your properties.


In most cases insurance companies do not pay claims. If they did, they wouldn’t be in business or so big. In these scenarios policy holders may have to sell their homes fast for cash.


Lumber Company Leads

This is another untapped referral source. When trees fall on garages or homes, lumber and tree service companies get the first calls.


In other cases these referral sources can tell you when prospects are desperate for cash and are trying to sell their trees cheap. Or where there may be a property which also has a lot of value in timber rights. Money that may be used for helping to acquire or extract extra value your competitors don’t see.


The Unemployed

The AI revolution is creating levels of unemployment and interruption to income at a scale we’ve never seen before.


The vast majority of property owners cannot afford to carry their mortgages for even a month or two without a paycheck.


Depending on your contacts and access to data, you may find these sellers by tracking employers that are making layoffs, through recruiters, new credit defaults, and job wanted ads.


Be The Fastest And  Most Attractive Buyer

Have your proof of funds in hand, along with a contract, and be willing and able to close faster than your competition. Those things can mean a lot more to sellers than the top line price today.

Be sure to check out our Fall Deal with interest rates as low as 1% on loan amounts over $600k.

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7 Deadly Mistakes Wholesalers Are Making In This Market

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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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Big Cash Flow Streams Most Wholesalers Are Missing Out On

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on Thursday, 28 June 2018
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Many real estate wholesalers are letting thousands of dollars in potential cash flow and income just slip through their fingers each month. Start monetizing these items and multiply your income.

A lot of real estate wholesalers work really hard to hustle and find and sell deals. Yet, they are often letting some of the easiest money just go to waste. Or worse, go right to the competition. By recapturing these streams of income wholesalers can hit their financial goals much faster and see more consistency in their incomes.

Leads That Don’t Fit Your Criteria

As a wholesaler you are digging up leads every day. If you are doing well you probably have a lot of calls, emails, and contact form fills from those that just don’t meet your criteria for some reason. These will typically far outnumber the deals you actually do. The price range, neighborhood, level of repairs, or asking price just might not be a perfect fit. Yet, these deals can still be a great fit for other investors. Trade them or get a referral or assignment fee for them.

Homeowners Who Don’t Want to Sell Cheap

You are likely running into a lot of homeowners who just believe they can get more for their homes if they hold out for a better offer or list it for sale with a Realtor. Maybe they can, maybe they can’t. Why not refer them to a Realtor? Maybe there is a legal way to get compensated for that. If no one buys the listing, you can always go back and make another cash offer.

Movers Needing New Housing

How are you helping all your sellers with their next housing solution. Many will need to buy or rent something else. Are you helping with that or just giving that business away? Every wholesale transaction you do could easily lead to 1, 2 or 3 more, all without having to dig up a new lead.

On Site Advertising & Sponsorships

If you really have a great website (not the Investor Carrot type) and have invested in SEO and ads and are generating good traffic, then there are plenty of people who are going to be willing to pay to get in front of those website visitors and the ones who make it on your email list or join your Facebook page. They can pay for ad space, or sponsor your site and marketing efforts. That may not be a lot of money each month, but once you build a tribe of sponsors and set them up to produce residual passive income for you each month, it’s easy extra cash flow to fuel your wholesaling business or surplus funds you can treat yourself with.

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Real Estate Wholesaling: The Most Overlooked Source For Leads

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on Thursday, 14 June 2018
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Looking for more real estate wholesaling leads?

There are many ways to find wholesale house leads today. There is one which is frequently overlooked and can provide some of the easiest to close and most profitable deals.

Leads for Real Estate Wholesalers

With the booming housing market investors are enjoying right now even the MLS can produce house deals to wholesale and flip quickly. Then there are bulk REO and note buyers that frequently have volumes of properties they hope to shed, as well as new software and list sources which help pinpointing off market prospects. Plus, it’s never been as easy or affordable to run inbound online marketing campaigns.

No wholesaler should be coming up short on deals right now.

Tap into Rehabbers

While there are plenty of sources of potential deals and lots of properties being floated and passed around as deals today, wholesalers still need to make sure they are contracting on house deals that really offer good spreads and are getting a good overall ROI, including their marketing.

This makes today’s house flippers and rehabbers one of the best and most overlooked sources of quality leads.

Fix and flippers are putting a lot into marketing directly to owners for deals. They are mailing, cold calling, emailing and running ads and signs. Most only end up being able to do a fraction of the leads that come in. Most rehabbers have tight criteria for the homes they will work on, and have limited capital and time to work on fixer uppers. That means they are typically left with dozens (if not more) motivated seller leads each month. Most just let them collect dust, because they don’t know what to do with them.

As a wholesaler this is your chance to step up and create more win-win-win scenarios. You can help the sellers actually sell their home, the rehabbers to monetize those leads and do more marketing and your buyers list to get more deals. Plus, you win too.

How to

There are a number of ways to tap into this lead source, including:

  • Responding to their mail pieces

  • Networking at REIAs

  • Pick up the phone and call

  • Get on their email lists

There are many ways to take down these deals too:

  • Visit job sites and make offers on rehab houses before the work is complete

  • Arrange to buy excess leads in bulk

  • Co-wholesale them together and split the profits

  • Take assignments and close with your transactional funding

  • Take live referrals on deals they can’t handle

If you aren’t coming up with all the deals and dollars you hoped to from wholesaling try tapping into this lead source.

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Dealing with a Hot Lead Turned Cold

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on Thursday, 18 May 2017
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Sometimes, sellers go from highly motivated to kicking the tires and dodging your calls. When you work in real estate wholesaling, this is a part of the gig. Dealing with a hot lead suddenly turned cold can be difficult and overwhelming, especially if you're new to wholesaling.

After settling on a price and getting ready to close, everything can change in a second. Maybe someone told your seller the price was too low or you discovered there's a co-owner that hasn't signed off. Many things can take a motivated seller and turn them cold.

While this is a normal part of wholesaling, there are ways to deal with it. If you have a hot lead that's suddenly turned ice cold, here are some of the things you can do.

Immediate Contract

One of the easiest things you can do to avoid watching a new hot lead go cold is get the contract signed immediately. This won't guarantee anything, but it will certainly help.

Keep Leads Coming in

Automated marketing helps to keep your leads coming in, which will help offset a hot lead going cold. When this happens, it may be easier to concentrate on the next deal than let a potential seller drag you around, dodge your calls and make excuses as they continue to waste your time.

Do Your Homework

It's possible a seller could have sold the property a day or two before. The tax record may show they still own the property, but they don't. When you do your homework, you may be able to discover this fact before it's too late.

Ask for a Non-Refundable Deposit

Hot leads are not just sellers, but also buyers, and they can go cold, too. The best way to keep buyers from walking away from the deal is to add a clause into your contract stating the buyer has to put up a non-refundable deposit with an attorney within 24 hours. You can even tell the buyer you will continue to market the property until a deposit has been made with an attorney or a title company.

Real estate wholesaling isn't always cut and dry. Some days are more difficult than others and you really do have to take the good with the bad. Hot leads will go cold, but you can do a few things to mitigate your damages. Make sure you do your homework, get the contract signed ASAP and keep new leads coming in. With buyers, get a deposit as soon as possible to ensure they don't walk away from the deal.

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding 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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Wholesaling Tips: How Many Leads Needed To Make $1 Million In 2014 & Where To Get Them…

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on Thursday, 18 July 2013
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How many leads do real estate wholesalers need to make $1 million in 2014, and where should they be prospecting for them?

What do the latest real estate industry stats show about closing and conversion rates? How many leads will you need, what are some of the best ways to generate them, and how soon do you need to start loading your pipeline to close your target number of deals in 2014?

If you haven’t tweaked your business and marketing plan this is your chance to hash out the numbers quick and make the necessary adjustments.

This works just as well whether your income goals from flipping houses in 2014 are just $100k or $10 million or more. For arguments sake, we’ll use $1 million as an example, as it’s easily scalable.

If your average profits on wholesaling a house is 10%, based upon an average home price of $200k, to make $1 million next year you’ll need to close 50 deals.

That’s not a big number, but obviously not every lead equals a deal. According to a Market Leader calculator, and based upon and average lead to close rate of 2.5% (current reported average among real estate agents), you’ll need to roll into 2014 with 2,000 leads already in your pipeline and start generating 364 leads a month.

Again, this doesn’t have to be too difficult, but where do you start? Market Leader suggests looking for a monthly mix of:

• Craigslist leads: 157
• Referral leads: 15
• Social media leads: 41
• Paid leads: 151

Of course you won’t want to overlook other online marketing either and need to continue to work the long game with branding and SEO to be constantly be reducing marketing costs and increasing conversions rates.

In fact peeking into the online marketing Market Leader does itself, and used to attract the recent $355 million sales price to Trulia you may also want to include press releases, social and a lot of blogging. In the wake of Google’s new SEO update look for guest blogging opportunities, consider Facebook promoted posts and make sure you keep links diversified.

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