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The Best Real Estate Strategy For Starting Out?

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on Monday, 14 August 2017
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What is the best investment strategy for those just starting out in real estate?

Real estate has a place in everyone’s finances. It may either be the primary means of making money and building wealth, or just a core investment which provides essential diversification. So, what’s the best way to get started?

The truth is that the best real estate investment strategy for you may depend on several factors. That may include; the resources you have to start out with (time, money, credit, and skills), and what you like to do. Here are three of the most common and sound ways to get going.

Turnkey Rental Property Investing

Turnkey rentals can be ideal for new investors. They don’t require much time to source, secure, and manage. They don’t require you to be an expert in all areas of real estate. Great providers can bring you quality investments, and handle everything for you. You just put up the money, or combine a down payment with investment property financing.

Private Lending

Those who have a good amount of money to invest may find private lending even easier than rentals. You simply provide your funds to active investors who go out and take all the big risks and do the hard work. You get a set rate of return. This can be done by investing in notes, or negotiating individual loans directly with front line investors. This gets even easier if you invest through a sold asset manager or mortgage broker.

Real Estate Wholesaling

For most, real estate wholesaling stands out as the best initial strategy. It is far easier, and less risky than fixing and flipping houses. It doesn’t require the expertise or substantial capital needed for private lending or buying and managing rental homes or apartments. Wholesaling is faster to learn and can help new investors master the basics, with the smallest amount of risk, and for the fastest returns. It is perfect for those light on resources, and who need to start generating cash fast. It can either be used as a stepping stone to other types of investing, or can become a seven figure plus business.

Summary

There are several great strategies for getting started in real estate. This includes; turnkey rental property investing, private lending, and wholesaling. What’s best for you depends on what you like, and how much time and money you have to begin with. Those thinking about wholesaling can get a free approval for up to 100% financing on their first deal with Best Transaction Funding.

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Real Estate Wholesaling: Should you Find Better Deals or More Deals?

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on Friday, 28 July 2017
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When you're a real estate wholesaler, it's easy to get sucked into finding more deals and not worrying so much about the quality. However, there has to be some type of balance between the two, especially if you want to automate the business or only wholesale real estate part-time. Here's a look at whether you should be looking for better deals or more deals.

Quality over Quantity

The business of wholesaling can have the model of doing volume deals, high dollar deals or a mixture of both. When you buy low and sell higher, you can create attractive spreads, which can bring in a nice income. Higher dollar deals traditionally make you more money, but finding lower dollar deals may be easier.

When your margins are thinner, you can flip deals faster. The other option, however, is to demand a large payout and worry less about finding as many deals. It's also about how much you want to make, as some wholesalers are happy with $10K a month, while others want to make far more.

It's up to you to choose whether you want to run a volume business or one with higher quality deals. There isn't a right answer, but figuring out what works best for you will depend on your specific needs, wants and situation.

Increased Volume Equals More Income

Even with lower end deals, you can fly through inventory and do more volume. This can lead to more profits, but it also means more work. Will you be happier doing 200 deals a year or 20 deals and making the same money?

It's also important to know that just because you have more inventory doesn't mean you will make more sales. You still have to find the buyers and you have to be willing to make a deal with them in order to get the inventory sold. This is part of why some wholesalers will only work on a few deals at a time and not continue to take on new properties, if they have a full inventory.

Choosing Higher Priced Deals

While going the volume route will probably mean more work, going the higher priced route may require more mastery of your market. You will need to know how to get that property sold because it doesn't benefit you until it's sold. It can also be harder to find deals in a higher price range.

Whether you choose quality or quantity, you can make plenty of money with real estate wholesaling. Many wholesalers like to balance it out and they will take just about any deal they can find. Once you figure out which is best for you or if you prefer a balanced process, it's basically all about finding deals, finding qualified buyers and getting the properties sold.

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Mastering the Art of Talking with Sellers

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on Thursday, 29 June 2017
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Wholesaling is all about making deals. A huge part of the deal-making process is talking to sellers. If you cannot do this well, you may never become a good wholesaler. However, if you master the art of talking with sellers, this could become a very lucrative business for you.

It's almost like a science mixed with an art and the best wholesalers know exactly what to say and when. After years of experience, it becomes a natural habit. Here are some of the ways you can master the art of talking with sellers.

Find the Pain Point

Maybe the one most important things you can do is figure out what the pain point is. Why does the seller want to sell and why did they call you? Do they need to unload the property fast or is it almost in foreclosure?

Asking the right questions will help you to get to the pain point. Some of the best questions to ask include:

Is the property vacant?

Are you the landlord for the property or do you live in it?

Why are you trying to sell the property?

What's your ideal situation with the sale?

Is there a reason you haven't listed the property with a real estate agent?

Sometimes sellers can put up walls and make it hard to get the information you need, but with the right questions, you can get to the pain point.

Create Rapport

Just like with any job where you will deal with customers, you need to create rapport. Find something common between you and the seller and use this to bond. It could be something as simple as a hobby or a sports team. No matter what it is, once you have common ground, you can bond and built rapport.

Learn to Steer the Conversation

Getting more information from the seller can be done when you learn to steer the conversation. You want to make sure you find out if they are truly interested in selling or just curious about the mailer you sent. Ask if they were looking to sell before receiving your mailer and remember, most sellers won't simply tell you they are looking to sell and need to do it fast.

If you continue to steer them back with close-ended questions, you can get to the bottom of why they are selling and if they really want to sell.

 

Use these tips to become better at talking with sellers. Wholesaling is very much a people business and you need to be able to talk with sellers if you want to become successful with real estate wholesaling.

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How do Real Estate Wholesalers Make Money?

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on Friday, 23 June 2017
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Investing in real estate has long been a good strategy for long-term financial gain. Many articles have been written on the strategies used, but when it comes to wholesaling, it may be difficult to find a clear understanding of how you make money. It's important to understand the strategy of wholesaling, if you want to build an income or use it for investing.

What is Real Estate Wholesaling?

There are three basic strategies used in wholesaling, which include:

Assignments - This is by far the most popular because you may not need any money to get started. Basically, you find a motivated seller, write a purchase agreement for a specific price, find an investor and sell the contract to them for a fee.

Double-Closing - This strategy means you will actually purchase the property from the seller and immediately sell it to an investor. Usually, you will close with the investor within hours after closing with the buyer and timing is the key here.

Buying and Selling - The final strategy includes actually buying the property and turning around and selling it.

All three strategies are often used by wholesalers and you can make money with any of them.

How does a Wholesaler Make Money?

The cash you will put in your pocket as a wholesaler comes from figuring out the After Repair Value and doing a bit of math. You need to know how much it will cost to fix up the home and how much it will sell for once rehabbed. Then, you want to sell the property to an investor for more than you agreed to pay the seller, but at a low enough amount that the investor can rehab the home and sell it for a profit.

For example, if you buy a property for $25K and it will sell for $100K once rehabbed, but the rehab will cost about $40K, you need to sell the property for a low enough amount to give the investor enough room for profit, yet you need to make money, too. Some wholesalers take a flat $5K or $10K fee just to sell investors the contract, while others try to get the most they can without cutting into the profits for the investors. In the above scenario, you may be able to sell the home for around $30K or $35K and still leave some room for the investor to make a profit.

It helps to know the type of return your buyers will be looking for, which will depend on the type of buyer they are. Some will be rehab buyers, which will be looking to profit when selling the home and you can assume they will be trying to max out around 70% of the retail value after making repairs.

Others will be buy-and-hold investors, which won't be looking to make the same type of profit. These investors are looking to rent out the property and you will need to look at the average rent in the area and figure out the price to sell at in order to allow an investor to make at least 1% of the purchase price in rent each month.

Making money as a real estate wholesaler is very possible and some make a very nice living. Choose your strategy, know your buyers and make sure you do the math before you write up that purchase agreement.

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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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10 Top Real Estate Blogs To Follow In 2017

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on Thursday, 05 January 2017
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Which real estate blogs should you be following in 2017?

Leaders read, and if you want to be on top of real estate and business trends it pays to be tuned into great information feeds. Blogs are a great way to get the latest tips, keep up with what’s happening out there, and spur creative thinking. You are probably already watching the big staples like Zillow, Houzz, and your local newspapers. Here are ten more worth checking out for new ideas…

1. Wills, Trusts, Estate

The willstrustsestate.com blog offers deeper insight into long term planning for real estate investors. Includes tips on finding the right estate attorney, legacy planning, protecting your real estate assets, and the tips of property to have in your long-term portfolio.

2. Mesocore

The Mesocore blog provides insights into the latest green home technology, building affordable homes, and designs for off grid vacation homes. Recently featured on the Discovery Channel.

3. Baluch Bulletin

Run by author, investor, and doctor, Amir Baluch MD, the Baluch Bulletin provides detailed insights on market conditions and data, as well as smart financial moves for busy professionals.

4. Legendary Custom Homes

The Legendary Custom Homes blog delivers an interesting look at how house flippers can find their own niche in the market. This firm specializes in teardown-rebuilds and major remodels to like-new in the Cincinnati, OH area.

5. Realty 411

Realty 411’s news feed offers updates on the latest nationwide real estate investment events, as well as exclusive interviews with CEOs and industry leaders at top firms like Rodeo Realty, B2RFinance, and more.

6. REWW

Real Estate World Wide’s blog publishes a blend of tips for finding motivated sellers and cash buyers, as well as building a fast-growing real estate wholesaling business.

7. Sky Five Properties Blog

Sky Five Properties is a Miami based brokerage headed up by Kaya Wittenburg. Via the blog Kaya, a multi-billion dollar producing broker, speaker, and former model, delivers thoughts on the future of real estate like floating homes, and luxury real estate design.

8. BiggerPockets

BiggerPockets’ carefully curated blog is one of the portal’s best assets. The forums can be a big distraction and wild goose chase for many investors, but the official blog offers a more organized and thoughtful chain of learning. Check out contributor Sterling White’s posts on building a real estate business, personal growth, and making offers on sight unseen properties.

9. Kent Clothier

Kent Clothier’s personal blog is a great resource for time management hacks and tools, staying motivated for investors, and ideas for giving back and making it go viral.

10. Best Transaction Funding

Last but not least; keep tuned into the BTF blog for more lists like this, educational pieces on deciphering market data and making the best moves, real estate marketing trends, and how to get your house deals funded.

Others worth checking out include CT Homes LLC which has become a model that has spawned hundreds of other real estate blogs, Rosa Houghten’s real estate blog for new ways to think about paying it forward and real estate fashion, as well as Black Belt Investors, which has now upgraded its multi-media blog to a multimedia member only online training platform.

 

What’s your blog? Which are your favorites to follow? Let us know so we can add them to the next list!

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7 Real Estate Wholesaling Marketing Channels To Embrace For 2017

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on Thursday, 15 December 2016
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Which marketing channels should real estate wholesalers be ramping up to dominate in 2017?

Along with funding for deals, marketing is vital for real estate investors. Get ahead of the competition in your marketing to sellers and buyers, and you’ll dominate the market and control the flow of deals and profits. So, which types of tactics and media do you want to be investing in to really get rocking and do more deals over the next couple months?

1. YouTube

Video marketing is definitely trending. More and more consumers are digesting video content, and this is only likely to continue as devices and internet speeds get better. It’s as close as you can get to in-person marketing on the web. Now is the time to set a video content production and publishing schedule, and make a new Year’s resolution to stick with it. Don’t allow quality to become and excuse to stall and not get started. You don’t need a bunch of fancy equipment. What’s really most important is being unique and authentic, and offering value.

2. Instagram

Instagram appears to have totally kicked Pinterest’s backside when it comes to getting results in real estate marketing. All investors and wholesalers should really be on Instagram. Again, come up with a plan for posting something daily, and make it a priority. Use hashtags, mentions of other handles, and location based posts to increase engagement. You can use video on Instagram, but the data suggests still images perform better.

3. Blogging

Text content is only becoming more important. The analysts, top investors, and big corporations are all in agreeance on that. You’ve got to be producing good content on a consistent basis. Just make it interesting and valuable. Avoid the urge to just churn out filler content. Choose quality over quantity.

4. Off-Site Content

Don’t just publish new content for your own real estate website either. Guest posting spots on other sites, in magazines, and in the news can all be powerful ways to hack lists and leads in bulk, while boosting your brand visibility.

5. Live Events

The entertainment industry is a $2T business. That dwarfs most other industries, including many real estate sectors. While our lives may have mostly gone digital, and perhaps because of it, people want to get out and experience things in the real world more than ever. So, host engaging open houses, educational meetups, and collaborate with other business partners on interesting events that get people out and allow you to interact in a warm way.

6. Direct mail

Direct mail is still an important part of the marketing mix. It can still work, and be profitable. However, rather than going cheap and broad, consider being more targeted, creative, and invest in quality pieces which will really stand out and get attention.

7. Mobile Apps

 

Mobile apps continue to be among the best ways to stay in front of customers and keep engagement and transactions up. Mobile friendly websites are a must, as is mobile search engine marketing. Yet, apps continue to take over and become very key native advertising and branding tools. It might cost you less than you think to develop your own app, or even brand and existing app and make it yours.

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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Trump Election Win To Spur Real Estate Wholesaling Surge

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on Wednesday, 09 November 2016
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The outcome of the 2016 US presidential election looks set to spur a new boom for real estate wholesalers.

No matter who you voted for the election results, and Donald Trump win is expected to create a flurry of real estate investment activity. Property wholesalers who move fast stand to benefit big from this action. Especially those who know how to market themselves well.

Many Clinton supporters swore they would leave the US if Trump won. If they stay true to their word many could be packing up to head to Canada, the Caribbean, and Mexico. That is likely to mean a sizable number of property owners at all levels of the spectrum looking to shed their real estate fast. Who better to help than wholesalers?

Trump believers are no doubt ecstatic. There is no question that many specifically voted Trump for the perceived benefits to their real estate investments, taxes, and healthcare costs. For them it is time to get busier than ever putting their capital into the US property market and expanding with new acquisitions. Wholesalers and agents should be seizing on this opportunity to serve the surge in demand, especially with the additional inventory which may be coming online. As of the end of trading November 9th, the NASDAQ, DOW, S&P 500, and gold prices were all up. Don’t be surprised if some asking and bidding prices go the same direction by the end of the year as well.

The real icing on the cake could be a reversal of recent international investment trends. The National Association of Realtors had reported foreign investment in real estate falling by over $1B in 2016. With the uncertainty over, and a president known for being big on real estate in the White House we could see some of those investors coming back, and with more capital to buy income properties.

Whatever the other fallout from the election results may be, let’s just hope for non-violence. React with your investment portfolio and strategy as you see fit. Take advantage of what we do have. And let’s try to get along, whether delighted or depressed by the results.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding for real estate wholesalers in the US. Get your Proof of Funds letter today and start doing those deals!

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The Best Day of the Year for Real Estate Investors Is...

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on Thursday, 16 June 2016
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What is the single best day of the year for real estate investors? How do you maximize it?

July 4th is hands down the best day of the year for real estate investors.

Independence Day is truly a power day for investors in many ways. It’s about celebrating freedom, and we have a ton of it! Here’s how to maximize July 4th 2016 to snowball results for even more to celebrate next year…

Flex Your Gratitude

There is so much for U.S. real estate investors to be grateful for. You can imagine millions of people in third world countries laughing at us on A&E and HGTV. There they see us fretting over the fine details on luxury makeovers, while they’d just be glad for running water and a roof. We are so spoiled with access to great housing. Most of us get to own our own homes too. That is iced with the ability to get into real estate wholesaling with virtually no resources, and invest and grow incredible wealth. As a property wholesaler you can probably make enough to feed or provide clean water, or education for a whole village for a year somewhere else in the world.

Celebrate it

Celebrate it these freedom and luxuries. Take time out to spend with family and celebrate. You have the freedom to do it. Many other workers do not. Throw a celebration. Anchor and remind yourself of your freedoms. Celebrate the lives and courage of those who protect it, and have earned if for the rest of us.

Pass it on

What could be greater than to pass on the opportunity to own and live in safe and healthy homes, the ability to increase personal freedom and to empower parents to give their kids freedom by investing in various ways? Accomplish this in July 2016 by offering deals, making some extra media noise, sharing your knowledge, hosting open houses, and inviting more people to a 4th of July event.

What will you do this July 4th?

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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Where Can I Find Buyers for My Wholesale Real Estate Deals?

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on Wednesday, 20 April 2016
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Where are the buyers?

There are still mountains of real estate inventory to choose from out there. With unlimited funding available from transactional lenders and hard money lenders the key to unlocking the cash for most is finding the buyers. So where are they?

The 3 Types of Buyers Investors Need to Focus on Now

PROFESSIONAL INVESTORS

Real estate wholesalers looking for qualified buyers, and specifically cash buyers who are easy to work with should absolutely be honing in on serious end investors. They know the business, will either have financing lined up or the cash to move immediately on fair deals, and will often become repeat, high volume customers. Find them online in real estate forums, via social media, and at local investor meetings and meetups.

INTERNATIONAL BUYERS

Tapping international home buyers and investors opens up the world to a massive pool to funnel deals too. Most expect to pay cash, or at least to put down a lot of money. They see American real estate as being cheap, and are often very easy to work with, if you keep it simple. If you haven’t yet, start expanding to market your real estate deals internationally. Check the data and find out who the strongest international buyers are in your market. Hire someone who speaks their language, or find a partner company that can help. Then lead with contacting overseas Realtors, Google ads targeting foreign buyers in those countries, and look for ways to collaborate with Chambers of Commerce and Tourism bureaus.

GROOMING THE NEXT ROUND OF BUYERS

The absolutely biggest and most common mistake that 99% of real estate investors and businesses make, and which invariably cripples them, is only focusing on buyers for this week and this deal.

Savvy investors and businesses owners who continue to thrive and enjoying growing incomes and profits are those that start loading their pipeline years in advance. Most people will buy a home within the next 5 to 7 years. Many will move more frequently than that, and will end up buying second homes, vacation homes, and investments regularly too.

Make connecting, and assisting with preparing to buy and invest a part of your annual strategy. This may include friends, family, ex-coworkers, aspiring investors, recent victims of the foreclosure crisis, and renters.

Start loading your pipeline with these buyers and you’ll find more deal volume this year, and more easy deals to do every month each year after this.

 

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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7 Real Estate Wholesaling Power Tips from Billionaire Sam Zell

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What can every real estate wholesaler learn from billionaire investor Sam Zell?

Sam Zell is head of America’s largest apartment REIT, and worth around $5B. He’s been throw multiple real estate cycles, and is famous for compiling a $3B portfolio of distressed property from banks, with a down payment of just $1 on some of them. He’s also known for flipping a whole portfolio to Blackstone for $39B just before the biggest dip in the last down turn. Needless to say; he knows a thing or two about flipping properties, and winning no matter what is happening out there. So what can he teach us about wholesaling today?

1. It’s All About Supply and Demand

Winning in business, and especially the real estate business is all about supply and demand. There is still significant supply of distressed properties to be tapped out there. Without wholesalers other investors and retail buyers don’t have the supply they need.

2. Look for Markets with Pent-Up Demand

If you aren’t getting the traction you need on the flip side look for markets where there is already great demand for wholesale properties. Where are investors searching, but are coming up short on inventory? Zell has found this in a variety of places, and even has one office which is open 24 hours a day, 7 days a week, which he says is full of buyers around the clock.

3. Serve Others by Taking Bad Assets off their Hands

Some aspiring wholesalers are conflicted by the prospect of picking up homes on the cheap from desperate sellers. If you are transparent, and are making fair offers given the dynamics of the situation you are providing a valuable and desperately needed service. Don’t underestimate your value and the importance of what you do. Do good business, and operate from a position of confidence.

4. Understand the Downside

Sam Zell says that what continues to cause investors to fail and get crushed is that they never see the downside coming. They always become over confident and optimistic about the market and begin to believe “it’s different this time.” Zell has been through enough rotations (profitably) to tell you that it isn’t different. Trying to stop the turning of economic cycles is almost as challenging as stopping the earth from rotating. The good news is that wholesalers can profit during all cycles – if they buy right. That is providing they bid on properties well and build in enough profit to cover the unexpected.

5. Leverage is Great

Zell and his companies juggle billions of dollars in financing. For Zell it is all about getting the right mental perspective on this. He says he sleeps well owing billions of dollars. That works when you have structured deals well and are confident in your position and success.

6. Liquidity is King

Leverage is so powerful in part because it enables investors to stay liquid. By using transactional funding real estate wholesalers can finance 100% of their deals, while keeping their cash on hand to stay flexible and agile.

7. Influence Your Own Destiny

Like Warren Buffett, Sam Zell also takes big positions in the investments he tackles. Whether it is a controlling interest in a business or partnership, having a sizable audience that will be your recommendations without thinking twice, or controlling enough local real estate that you can control the values – there are numerous ways to influence your own destiny. Ask how you can more strategically make acquisitions, and build a following, so that you can control the market and your own outcomes?

 

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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Fed Rate Hike Spree To Put Real Estate Wholesaling In The Spotlight

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on Thursday, 03 December 2015
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As interest rates start soaring wholesaling real estate likely to become top investment choice.

The Fed’s pending rate hike spree could come far faster and harder than most expect. One analyst has forecast a 1.5% and done raise in December. Others anticipate interest rates up 2% by 2017. They will double before they get back to previous territory in the last housing boom. As more aggressive loan programs are rolled out if shouldn’t be surprising to see many property owners with double digit mortgage rates again, at least within a few years.

Side Effects of a Rising Rate Environment

Wall Street has already been wincing and contracting, just at the thought of a rate hike. Higher rates can be bad for some stocks and may result in more investors pulling their cash out, and putting it into real estate.

This activity, along with higher remodeling and building costs could create faster price growth in the housing market.

Yet, easier access to lending, a raging appetite for real estate as an asset class, and rapidly rising prices, along with higher rates can bring other challenges. Competition and thinner cash flow levels are two of these.

It’s also important to note that many investors have already recently tied up the bulk of their cash in startups, equities, and rental properties. So there will be great opportunities for wholesaling houses, but the cost and sources of money can change some of the dynamics in the market.

Funding Your Real Estate Deals in 2016 and Beyond

Buy and hold investors, and rehabbers that are tight on cash may be able to turn to credit lines and even reverse mortgages. But they must stay alert to the potential for negative cash flow if using high loan to value purchase loans.

End buyers made up of regular home buyers armed with access to more aggressive high LTV loan programs could be among the most active in the market.

This means great opportunities for wholesaling using short term mortgage financing. Many rehabbers and landlords may see wholesaling as their new best strategy to get in, out, and paid without holding onto the debt. Even if rates nudge higher this will be barely noticeable to those using transactional funding and hard money loans to quickly flip properties in a matter of days.

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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Huffington Post Declares Transactional Funding Makes Wholesaling Best Choice For Investors

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A new Huffington Post report heralds wholesaling as ‘The Real Estate Investment Niche for Everyone’. So what makes wholesaling real estate so attractive for new and veteran investors alike? What does it really take to get in, and be successful at wholesaling?

Flipping Houses to the Stars

The Huffington Post starts by highlighting that real estate wholesalers who are inspired by reality TV house flipping shows might actually find wholesaling comes with less stress and headaches. In fact, wholesalers can profit by flipping houses to TV celebrities. But without the mayhem and emotional roller coaster of dealing with renovations and contractors.

While the concept of buying at deep discounts remains the same as with other types of wholesaling, the profits margins can be a lot better on real estate. This is something industry personality and founder of an Inc. 500 ranked wholesaling and education company Kent Clothier says drove his family to switch from the world of groceries to property.

This comes right on the heel of Fox News highlighting the pros of selling houses to wholesalers for regular homeowners, versus paying 6% to list with a Realtor.

So as wholesaling properties becomes increasingly legitimatized by the mainstream media and business sector, what do aspiring investors need to get in, and win?

What it Takes to Wholesale Houses

According to the above mentioned report you’ll need:

Some real estate education

Potentially some deposit money for making offers

To find properties and negotiate contracts at discounts

A transactional funding lender to finance your deals

Buyers to sell too

There are a number of wholesale training providers out there, though industry gurus like Sean Terry say success is more about having alignment and the drive to really go out and make it happen than just what tools to use.

Worth Trying

Given that wholesaling real estate appears less risky than the alternatives, it seems worth trying, at least to get your feet wet in real estate. It could be the best bet for those finding it hard to make the numbers work on rehabbing or rentals in their area, or who are unsure about the future of the market, and may be light on cash, and have low tolerance for risk and loss.

Authored by BestTransactionFunding.com; America’s 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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5 Reasons To Sign BiggerPockets Petition To Stop Wholesaling Discussions

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Why should you sign the new BiggerPockets petition to discontinue real estate wholesaling discussions?

A new thread on the online real estate forum Bigger Pockets is trying to drive a petition to end discussions about wholesaling on the site. So why sign and support it? Especially if you are a real estate wholesaler?

This petition attempts to take the battle against wholesalers to another level by just blocking discussions about it. Any wholesaler who has been in the game for 5 minutes has already heard plenty of arguments from Realtors, other real estate investing gurus, and investors about how ‘wholesaling isn’t really investing’, and more. Most are just intent on minimizing the competition, or are just wildly ignorant of how commerce works. Though this thread in particular appear to be kick-started by a house flipper that is brand new and is probably having a hard time finding deals thanks to highly successful and methodical wholesalers in his area. So if you are a real estate wholesaler, why should you back the petition?

1. Save Others from Dangerous Advice

No one can deny that like Zillow, the BiggerPockets forum has done very well at growing in size and visibility. Unfortunately, while there are some valuable conversations and wholesale deal making going on, the easy access means that much of the amateur advice being handed out to newbies is not just poor, but often downright dangerous. By clipping these conversations and amateur wisdom out, you’ll help save other new investors from a financial nightmare, and preserve the real estate industry.

2. Elevate the Real Estate Industry

By ending these discussions aspiring and new real estate investors will be encouraged, or have to seek out legitimate and quality investment advice and education from those that actually have the experience to help them. That won’t just save many from bankruptcy, but will help make daily business easier thanks to a more knowledgeable range of industry players, while preserving trust and efficiency. This is critical for those that desire longevity in the real estate business, and for their wealth.

3. Stopping Fueling Your Competition

Bigger Pockets now seems to hold the same type of position that Facebook did a few years ago. That is if anyone still remembers Facebook. Facebook got big, fast, and real estate professionals and businesses felt they must get on it to stay visible and relevant. They helped build the social network even further and invested a lot in it. Then Facebook bit them back, and essentially vaporized a lot of that investment. There is no telling exactly where Bigger Pockets is going. But today many real estate investors and businesses are feeling pressured to be included. However, like Facebook and Zillow, the more you invest in building someone else’ business, the harder it will be to keep your own website visible and to compete. So approach with care and balance.

4. You’ve Got Better Things to Do

You’ve got better things to do than waste time explaining yourself on BP. If you’ve got hours for conversation, and just hanging out, then get out and network, volunteer for charity, or mentor some local investors that are really serious about winning.

5. You Don’t Need All of Your Business Out There

You don’t need to put ALL your business out there. It’s shocking at how much some say on these public platforms that will keep those comments up for the world to see for eternity. Sharing is good, helping advise others is good, and quality backlinks are good. But too many investors are revealing too much. Some are openly admitting and recommending others commit real estate and mortgage fraud. You shouldn’t be doing fraud anyway, and maybe this is just a cry to the feds to be stopped and given some free rent and a nice jumpsuit. But it doesn’t seem very intelligent. Even more prevalent are newbie questions and revealing inside strategy. Remember that your online comments might be the first thing Google serves potential sellers and investors about you. If you are holding yourself out there as an expert and cash buyer, but then are seen to have been asking about flipping contracts, how to make an offer, or how to get away without fixing a tenant’s AC in the middle of 120 degree summer weather, just last week – that’s your reputation out the window!

So will you sign?

 

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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Wholesaling Business: How to Boost SEO to Capitalize on the New Surge

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on Wednesday, 10 June 2015
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How can real estate wholesalers boost their online visibility to capitalize in the new surge in business?

Over the last few weeks we’ve seen a variety of data showing a dramatic surge in delinquent mortgages, REOs, home searches, and demand for wholesalers. Of course, that only helps those in the real estate wholesaling business if they can be found online today. And especially when it comes to being found in Google searches. Unfortunately most real estate wholesalers are doing pretty terrible in this arena. Some haven’t been trying. Others simply haven’t been investing enough back into it. And there are those that are completely hurting their own online real estate marketing efforts. So how can they change that?

How is it Working Now?

The biggest problem is that many have no idea how they are doing right now. They don’t really know if what they are doing is really working or not. They don’t know which things they are doing are working. And which need to be improved upon. So they aren’t always reinvesting in the best marketing. Many have no idea where their online traffic comes from, or what the ROI on different marketing channels is. So the first step is to check out how your real estate wholesaling website is ranking for different keywords and search phrases. Many will find they really haven’t been making a dent at all.

Choosing the Best Real Estate Keywords

Showing up at the top of Google searches and gaining more leads depends a lot on using the right keywords in your website content, and in your real estate blogs. Unfortunately there is a ton of confusion about this. So what makes great keywords?

The short answer is keywords that have high search volumes, low competition, and deliver highly targeted prospects that are ready to act.

Most of those that are new at SEO marketing tend to trend to far to one end or the other. They either focus on keywords that have high volumes, but are expensive to compete over, and deliver poorly qualified prospects. Or they hone in on highly targeted long tail keywords that can’t deliver enough leads. You’ve got to find balance. And understand that this changes on a monthly basis.

The Quirks that are Sabotaging Your SEO Marketing

However, even with great keyword choices some wholesalers are missing out, and sabotaging their efforts.

This includes:

  • Failing to incorporate keywords into other parts of your website
  • Not interlinking web pages and blogs together
  • Not having a mobile friendly website
  • Forgetting they still need to deliver readable, interesting content
  • Ignoring the importance of off-site SEO and back links (like from press releases)

Conclusion

Now is the ideal time to up your online marketing and SEO efforts as a real estate wholesaler. There is a massive windfall of business volume up for grabs, if you can leverage Google to participate.

The above can give you are great head start. But it is also worth considering hiring someone to handle it so that you can focus on what you do best, and actually get to closing deals and making money.

 

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: 6 Easy Ways to Spark Lead Generation

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on Friday, 26 December 2014
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Looking for easy and efficient ways to spark more inbound real estate leads as we break into 2015?

The moves real estate wholesalers make now will not only determine how well they bounce forward in January, but for the rest of 2015, and beyond. There are plenty of distractions and extra expenses at this time of year, and most need a sharp kick start in new lead flow to load the pipeline. So what are some of the affordable, fast and effective ways to make new connections, convert existing contacts and get some momentum going?

1. Launch a New Twitter Handle

Twitter continues to be a great platform for real estate professionals and spreading the word fast, even without engaging in paid Twitter advertising. So launch a new Twitter account. Perhaps a niche account or a personalized account will help gain more visibility and click-throughs. Some property wholesalers might even find that simply switching their Twitter handles can help them quickly stack up new followers and gain more retweets.

2. Send Those Emails

Regardless of whether you already send weekly emails, or have been slacking this is the ideal time to send out a new round to lead lists, past clients, industry professionals, and friends and family. Thank them for their loyalty, or celebrate the New Year, but don’t be afraid to keep it short and sweet, and to make a big, bold call to action.

3. Publish Guest Articles and Blogs

Tap the existing followings and traffic of others by reaching their audience through fresh guest blogs and articles published on third party sites. Right now many of these online portals are needing extra content to bounce back from the holidays, making it the ideal time for new collaborations.

4.  Unleash a PR Barrage

January is a fantastic time to make some noise, capture attention, and dominate mind-share in your niche with self-published press releases. Let the world know about your new services and product additions, give the media something to spread, create a buzz, put the competition on the defensive, and generate new internet and phone leads. There are both free and paid publishing options to choose from. Test them both.

5. Launch Competitions

Competitions and contests are a great way to spark a buzz, ignite sharing, and get people excited about contacting you. Very basic contests can be launched on Facebook in minutes, though some highly successful ones have involved branded sponsors, toll free numbers to call in on, and attractive giveaways such as paying winner’s mortgage payments.

6. Arrange a Meet Up

Meet ups can be great ways to bring together new prospects, past clients, strategic partners and new referral partners in a powerful way that can generate live warm leads on the spot. Consider getting together in coworking spaces, over ‘eat-ups’, hosting a real estate trends panel, or doubling them as open houses.

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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Holiday Sales Strategy For Real Estate Wholesalers

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on Wednesday, 12 November 2014
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The holidays are coming. What wholesalers do right now will make all the difference in how they end the year financially, the extent to which they get to enjoy the holidays, and whether they start 2015 behind, or ahead of the game.

So what are the best strategies for navigating the mayhem and opportunities for real estate wholesalers over the next few weeks?

There are just a few days left for real estate wholesalers to really step up and get ready to win over the next few months. Retailers are already pushing their Christmas wares and we aren’t even through Thanksgiving, Black Friday, Small Business Saturday, Cyber Monday and Giving Tuesday yet. These days are all magnificent opportunities to really ramp up hard and fill the pipeline to roll through to February with plenty of cash rolling in. So what are the best moves to ensure the coming weeks put you on top, versus flop?

Now is the time to take the time to plan and commission marketing materials to carry you through. There are always snags and unexpected hold-ups. If your content, ads, and infrastructure isn’t ready in advance it may all go to waste.

Get ahead of the surge, and then be sure to take a break on Thanksgiving, fuel up, and reenergize so that you are on top of your game for the rush.

This is also time to line up your capital and transactional funding so that deals can be processed and flipped fluidly.

Real estate investors and executives shouldn’t neglect to take advantage of holiday sales themselves either. If substantial discounts can be found on homes, office and property related supplies, marketing channels and more, this can add significant bumps to net profits over the next year, and can be compounded beyond that.

As far as specific strategies and tactics to focus on between now and December wholesalers should get serious about…

  • In-person networking
  • Capitalizing on the seasonal surge in web traffic with themed content
  • Forging new strategic partnerships
  • Promoting the holidays and the end of the year as the optimal time to buy homes as gifts and to reduce annual tax liability

 

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Wholesaling Houses for Passive Income

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on Wednesday, 05 November 2014
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Can wholesaling houses be used to build passive income?

Is Wholesaling Really Real Estate Investing?

While real estate wholesaling is the only way many investors ever want to engage the market there are those that frequently forego the benefits in search of passive income investments. Some investors are taught by rental property gurus that buy and hold income properties are the only way to achieve passive income. Some have even been programmed to the point of proclaiming that wholesaling isn’t even real estate investing.

However, savvy individuals continue to see incredible investment returns from wholesaling houses. Many would never consider giving it up for lessor ROI, or inferior amounts of income.

While some property wholesalers may request quite modest returns, others have been earning an average of $45 to $100k per house flipped according to RealtyTrac.

Then total up how much more wholesalers make with multiple flips each month and year, and the compounding returns this creates. Ice this with the dramatically reduced risk wholesalers enjoy and it’s easy to see who is making the most money.

But Wholesaling Houses Doesn’t Produce Passive Income, Right?

More money is always great, but some are still adamant that in contrast to being a rental home landlord, wholesaling doesn’t produce passive income. Or does it?

For a start, anyone that has handle rentals as a DIY landlord knows that this is anything but a truly passive income source. Plus, it brings more hours, risk, and prevents location independence.

But you have to keep finding houses to wholesale right? Yes, but as a buy and hold rental property investor you have to keep finding new acquisitions, tenants, and worry about fixing properties and daily management and maintenance. Which is less work?

Besides the ROI and reduced time and risk in wholesaling property, there are also actually a number of ways streamline the process and generate passive income.

Creating Your Wholesale Cash Machine

Real estate investors can now efficiently leverage help through outsourcing platforms like oDesk.com to build a team. These assistants as well as other strategic partners can be leveraged for consistent streams of deals, and end buyers.

Investors that keep themselves out of the day to day hands on, and act as true business owners, or investors can then enjoy passive income proceeds. Real estate moguls like Sensei Gilliland of Black Belt Investors have even designed systems for this like The Ultimate Real Estate Cash Machine.

So with systems that auto feed in fresh deals, a good marketing system, and a strong buyers list passive income can be gained from real estate wholesaling. In fact, it is pretty easy to argue that this is a far more passive investment plan than being a landlord. With access to unlimited cash for funding deals from Best Transaction Funding there is really no limit on volume either.

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Will a Stock, Tech Bubble Hurt or Help Real Estate Wholesaling?

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on Thursday, 16 October 2014
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Will a new stock market, tech industry crash help or hurt real estate wholesalers?

Inman News has been in a flap since the stock market started to tumble last week. Whether a mere blip or the beginning of a new apocalypse it’s worth asking how another major deflation in the stock market and tech industry will impact real estate.

It’s coming. Whether it is now or a couple years from now analysts having been proclaiming the stock market is at least 60% over valued for a while, and the tech world is ready for its own shake up. So what effects are we already seeing, and what will the outcome of a bubble bursting look like?

While super hero day traders following a wholesaling style strategy might be hit less hard than Warren Buffett’s buy and hold followers or VCs betting on a wide spread of startups, or big elephants like Zillow which don’t have any net profit to prop up their valuations, there will be some major shifts for all.

This compares to the bulk of housing market which Trulia claims is still vastly undervalued. Inman notes that the market has immediately reacted to recent fluctuations by driving down mortgage interest rates, and spurring a spike in refinance applications.

Many real estate professionals and companies might be glad for a tech slow down. A little slower pace of innovation and a sucker punch to Zillow will not only mean more money coming to real estate, but a chance to catch up, and improve on the basics versus worrying about keeping up with next year’s tech changes.

A turn down in tech and stocks invariably creates more interest and need to invest in real estate. This comes in various forms from up sizing houses, and increasing direct investment, and more money put into mortgage markets. It will also drive more selling off of houses and real estate in some areas where owners have lost big in the stock market and tech companies.

The great news is that wholesaling real estate still works in all of these conditions and markets and is fueled by them. It creates great opportunities to help those needing to sell fast, and serve the others scaling up their buying activity. Fortunately, with access to plentiful capital from Best Transaction Funding wholesalers are only really limited in maximizing these opportunities by their own goal setting.

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