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Using Virtual Real Estate Wholesaling

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on Thursday, 04 May 2017
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When certain trends start to pop up in your market, you could turn to virtual wholesaling. These trends include:

Lower response rates for direct mail marketing

Sellers say they are getting too many marketing offers

Sellers don't seem as motivated as they were last year

These trends often point to a seller's market, which means deal flow will start to decrease. As a wholesaler, this means your marketing budget will go up and your ROI will go down. When this happens, it may be time to pivot into virtual wholesaling.

What is Virtual Wholesaling?

Virtual wholesaling is similar to traditional wholesaling, but allows you to enter into a different markets, remotely. It will include many moving pieces to successfully facilitate the transaction. If you have great conversational skills, excellent organizational skills and the ability to network, you can use virtual wholesaling to your benefit.

Building a Virtual Wholesaling Team

Before you even think about handling a transaction, you need to build your virtual wholesaling team. This team will need to include:

A Title Company

An Attorney

Wholesale Partners

In some cases, your local title company will work great, if they are a national company. However, if they don't handle title on the national level, you will may need to find a title company that does.

An attorney is the next member of your team you will need to find. Getting a local attorney, in the market you're working in, requires good recommendations, which may come from the title agent or even the real estate agent in the local market. Make sure to compare a few options before adding an attorney to your team.

Along with your title company and attorney, a few wholesaling partners can be helpful. Having local JV partners to help you will make selling in a new market much easier. Make sure you put a solid agreement in writing about how you will split the profits.

Enter a New Market with Virtual Wholesaling

Real estate has historically been up and down, favors the buyer one year and the seller the next. As a wholesaler, you have to stay on top of your market, but you don't have to be limited to just your local real estate market.

With virtual wholesaling, you have the ability to enter into any real estate market you want. All you have to do is build your virtual wholesaling team first. Not only will you have the ability to wholesale in a new market, but you may also be able to increase your rental portfolio and even start flipping properties.

 

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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3 Reasons Real Estate Wholesalers Should Consider Flipping To Regular Buyers

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on Wednesday, 25 November 2015
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Should real estate wholesalers be flipping houses to regular home buyers?

A large number of real estate wholesalers focus on only flipping properties to other investors, and often only investors that are cash buyers. This can make business flow easily in many ways. However, some wholesalers may be doing themselves a serious disservice by ignoring retail buyers. Think about the biggest wholesalers on the planet; Costco, Alibaba, Walmart, and Amazon. They funnel wholesale products to end consumers, not intermediaries. So what might be some of the benefits of this approach for real estate wholesalers?

More Volume

The US is currently entering a massive boomerang buying boom. That means an additional 7 million plus repeat buyers coming back to the market on top of millennial first time home buyers, and more affluent move up buyers that are already taking action. Investors make great end buyers, but by opening the doors to more prospects wholesalers can do far more business. Armed with the best transactional funding wholesalers are only limited in deal flow by the number of end buyers they invite to do business with.

Higher Profit Margins

While the normal premise of wholesaling is “buy low, sell low,” regular home buyers can often be sold to at far higher prices. Not unfair prices. You can still give them a good discount. You just don’t need to leave another whole round of profit margin for another investor in the deal. That means far more profit per deal. It also means having to do less deals to meet your financial goals each year.

Diversification and Sustainability

More end buyer options means better diversification and sustainability for wholesalers. An investor buyer might buy up 10 deals a month from you, but what happens when they run out of cash or take a break? What will happen to your income, and the deals you have in the pipeline? Having multiple investor buyers, and the doors open to entertain retail buyers can ensure ongoing success no market what.

 

Will you sell your properties to retail home buyers? Have you been?

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

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on Thursday, 07 May 2015
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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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Finding Investment Advice After Real Estate Gurus Get Shut Down

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on Friday, 30 August 2013
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Where will aspiring real estate investors find advice and guidance as the guru machines get shut down?

This week the New York Attorney General sued Donald Trump for allegedly “swindling” thousands of students out of tens of millions of dollars. The lawsuit surrounds Trumps real estate investing initiative, formerly known as Trump University, a failure to deliver on promises and operating as an unlicensed educational institution.

While Trump is no stranger to legal proceedings and certainly wouldn’t be put out much even if he did lose and had to shell out $40 million or more in refunds, the same doesn’t apply for the real of the real estate gurus that have popped up in the last few years. For them this could be time to make serious adjustments fast or risk being next in the firing line.

When these things start is it notoriously always followed by the domino effect. Even those that have strived to offer great education and products could still be victims of the witch hunt. So as the gurus vaporize how will investors find adequate advice in the vacuum?

Education and guidance is definitely needed for newer investors and constant learning is critical for staying ahead. Perhaps not at $35,000 a pop like some TV personalities are charging (though that’s actually a pretty modest figure for those starting out with capital), but going in blind will be far more damaging to personal finances and the national economy.

If gurus want to stay in business they will likely have to get licenses and share with the government, deliver on what they say, and deliver more real results.

In the meantime may be it is wise to look to independent coaches rather than info product systems. Find direct help from industry professionals to partner with and mentor under.

Fortunately for those interested in flipping properties wholesaling is pretty easy once you learn the ropes as long as you do your due diligence, stick to sound investment principals, and minimize risk by using other people’s money using transactional funding.
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