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Real Estate Wholesaling: How To Find The Right End Buyers In 2019

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on Thursday, 27 December 2018
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Ready to make 2019 your biggest year in real estate wholesaling so far? It’s all about finding the right end buyers for your deals.


Properties are still plentiful, and the rumors are that there is a lot more inventory coming onto the market. As the cycle continues to turn that is likely to mean many more motivated sellers too. With 100% financing for wholesale deals from Best Transaction Funding, there are really no limits to the amount of volume you can do. So, who is able to do the most deals in 2019, and who can be in and out and paid the fastest is really all about lining up the right end buyers.


So, who are the end buyers in the real estate market in 2019?


Individual Cash Buyers

Overall there may be fewer cash buyers in the housing market in 2019. After years of purchasing homes and investment properties for cash, many have locked up their liquidity in equity. However, do expect more new mom and pop investors with retirement funds and who are cashing out of the stock market who can afford to pay for more affordable properties in all cash. Then there are many who will be inheriting their parents wealth and homes to cash out as well.


Investment Funds

Investment funds are still hungry for real estate deals. They have a lot of capital and must deploy it. One of their biggest challenges right now is putting that money to work. If you can provide bulk deals, then they may snap them up for cash as well.


House Flippers with Specialized Financing

One of the biggest challenges wholesalers perceive about flipping properties to those that need financing is getting through any inspection and condition hoops demanded by mortgage lenders. However, those flippers using one of today’s more modern flip lenders or private lending companies normally won’t have those issues, and have been enjoying high LTV financing. Advertising properties for only cash buyers will mean missing out on this bigger and highly active group of end buyers.


Boomers & Generation X Home Buyers

On the retail resale side boomers and Generation X home buyers could be among the most active in 2019. They have the credit to get loans and many have the down payments. Many have been waiting on the sidelines for a decade for house prices to soften up and are now eagerly looking for deals. Millennials are forecast to be the group which takes out the most mortgage loans in 2019, yet half don’t even have $1 for a down payment and closing costs. Only 10% have much saved. So, it may not be wise to bank your own income on serving millennials alone.


In conclusion - there are many great opportunities in 2019. It’s all about lining up the end buyers, and promoting to them in a way that connects. Who will you be wholesaling too?

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5 Types Of Properties Ripe For Wholesaling

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on Thursday, 13 December 2018
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What types of properties are ripe for real estate wholesaling now?

Whether you are just looking to scale and diversify what you are doing now, or you are just now looking to begin wholesaling real estate to diversify from other strategies and income sources, these five property types are worth exploring.

1. Homeowners with Equity

More and more homeowners are becoming ‘distressed’ as they feel more uncertainty about the market. Most now have more equity than they’ve had in years. No one wants to lose that. They don’t want to see all of those tens and hundreds of thousands of dollars evaporated by a declining market. Yet, there are others who still want to buy and are not worried by any temporary fluctuations in home values. Get in the middle here. Help equity rich homeowners cash out their equity and secure those gains, and connect the property to another buyer.

2. Underperforming Multifamily Apartments

Multifamily apartments have become more and more in demand. More buy and hold investors have stepped up to enjoy the economies of scale these properties provide. Yet, there are many small and medium sized apartment buildings which remain underperforming. They may be ready for renovations, have been managed poorly, or just having aging owners who don’t want to deal with it any more. Add value as the connector.

3. Retail Property with Higher Vacancy Rates

We’ve seen a huge correction in the retail property sector over the past couple of years. There has been a big restructuring. That has left many retail units empty. Yet, there are other retailers who are ambitious on growth. They need more floor space, more locations, and they have the capital to expand. Some will even be potential buyers of their own real estate. Bailout landlords with these vacancies and put them in the hands of better managers.

4. Land

From raw acreage to infill lots, there are plenty of opportunities to flip land deals. With land and new construction still being the more profitable route to profits in many areas, expect there to be more demand in this sector over the next few years.

5. Builder Close-Out Deals

Builders in prime areas like Manhattan are noticeably struggling with over supply. They’ve hit the peak of the market, and would love to cash out and finalize some of their condo projects and new home communities. With the right marketing to the right audience, these deals can still be very attractive to buyers. Especially international investors and buyers. Builders may be willing to negotiate a range of incentives from upgrades to discounts, and deeper discounts for bulk purchases that help them exit a project.

Whatever you’re wholesaling, Best Transaction Funding is here to help you fund your deals...

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5 Types Of Real Estate Deals Wholesalers Should Be Doing Now

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on Thursday, 16 August 2018
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What types of property deals are ripe for real estate wholesaling right now?

The market is always changing. What worked 5 years ago may not work as well today. Here are 5 niches to explore, test out and find bigger profits in now…

Small Multifamily & Mixed Use Properties

Overall yields on single family home rentals have been getting squeezed over the last year. To get the same spreads, many income property investors are having to look at multifamily apartments. Mixed use is still a hot item too. Funds and mom and pop investors alike need deal flow. Help them get it by considering flipping these types of properties.

Vacation Rentals

It’s true that the Airbnb Effect has dramatically driven up asset prices in many areas over the past few years. Yet, if you look, you can still find sweet spots where property prices are low and the potential yields from short term rentals can be massive. That makes it easy to flip these types of properties to rehabbers and buy and hold investors.

Empty Nesters

We’re in an interesting moment, coming off of a down period, but with a strong new economy. That means there could be fewer good inherited property deals or foreclosures. Yet, there are all types of reasons for sellers to be motivated. Age can be a big one. With age homes can end up being too big to manage, or just don’t fit health and mobility needs of seniors. Help these property owners who are more focused on convenience than price, and create more win-wins.

Construction REOs

Construction REOs have been a secret pocket of the distressed property industry. The average homeowner or new investor may not want to take on a home or apartment building that wasn’t 100% completed. That means these deals can have less competition and more bargaining room. Today, we need more new construction than ever. Take a look. You may find houses that just need a little love on interior design and applying for the Certificate of Occupancy. You don’t even have to finish the work. Wholesale them to rehabbers or small builders who can complete it.

Foreclosures

There are still foreclosures and foreclosure auctions. Check the data and you can find fresh spikes in this activity in different parts of the country. Be flexible and willing to go where the deals are at and you can still find great profits.

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The Keys Real Estate Investing In A Declining Market

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on Thursday, 02 August 2018
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What are the keys to success in real estate investing in declining property markets?


The economy appears to be in great shape and the Fed even held on hiking interest rates again, for now. Yet, there appears to be more data and signs of softness in the property market showing up. All real estate is local, and weakness in Manhattan prices, San Francisco rents or swelling inventory and longer days on market in the south may not immediately impact where you are investing. These trends could change with the economy, or a new rush into real estate if tech and stocks crash. Yet, every real estate investor and CEO had better have a plan in advance to weather any declining market activity.


Here are the most critical factors to plan so that you are never caught out when the market fluctuates.


Marketing

When the market contracts many instinctively feel they should pull back on every penny and bunker down. Unfortunately, this it usually counterproductive and just speeds up their demise. You’ve got to keep marketing to keep the leads and deals and income coming in. In fact, this is when you should have an additional marketing budget to pick up the pace and scoop up market share while others drop the ball.


Profit Margins

This is the time to fine tune profitability. Don’t make the classic mistake of burning customers by giving less and trying to charge more. Instead, look for ways to operate more efficiently, optimize debt and cash flow, trim unnecessary overhead, and use smart leverage. Those with the best profit margins will have the most staying power, and most flexibility.


Income

This is the time to establish multiple income and revenue streams. This is especially true for rental property owners and fix and flippers. It’s time to diversify, and make sure you have a variety of income sources which can keep your overall finances resilient and consistent. This probably includes monetizing your online assets and real estate wholesaling. Wholesaling is an ideal strategy for a declining market. You can get in out and paid, can build in plenty of price cushion and can use 100% leverage by tapping into the best transaction funding sources.

 

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4 Creative Real Estate Wholesaling Strategies To Use Now

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on Thursday, 26 July 2018
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Looking for ways to make real estate wholesaling even easier and more profitable? Check these ideas out…


Wholesaling can be one of the easiest and most profitable ways to engage in real estate. Yet, with a few creative strategies investors could find it even easier to get started, and to make more profit on each deal.


Co-Wholesaling


This is a way to partner up with others, expand your reach efficiently, and streamline your workload. You can either co-wholesale to find more inventory to promote to your buyers, or do it to tap into existing buyer databases and move your inventory faster and easier.


Reverse Wholesaling


Instead of going out to find the inventory, and then panicking about finding buyers for it in a very short period of time, why not find the buyers first, take orders and then go fill them. It slashes risk and stress, and makes sure all your deals are pre-sold before you sign a contract or take on funding for them.


Taking Equity


Multifamily investor and syndicator Sterling White says that he got his start wholesaling. On his first deal he chose to take equity instead of an assignment fee. That way he got to participate in the ongoing cash flow and equity appreciation. You might be able to do both - take a fee now, and equity for later too.


Prehabbing


A favorite strategy of the Fortune Builders team who were among the first house flipping TV stars, prehabbing means clearing out all the junk and creating a clean slate for your end buyers. Some properties look a lot worse and more work than they are because of all the dirt and stuff. Clearing a house out might only take a day for a good crew. It can make a huge difference in the appeal and value others put on the property and how fast it sells.


If you have only been wholesaling via assignments or using your own cash or hard money, then double closing with transactional funding is a great play to try too. With 100% financing you can do more deals, reduce the risk buyers and sellers will try to cut you out, and build in bigger profits.

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Father’s Day For Real Estate Wholesalers

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on Thursday, 24 May 2018
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Father’s Day 2018 is coming up fast. What incredibly valuable Father’s Day gift ideas are there to jump on this year? What gifts might fathers want to give themselves and their families this year?

Give Real Estate

As a real estate wholesaler you are uniquely positioned and able to give others the gift of real estate. No matter what your budget is you can find some seriously discounted deals that can still make unforgettable Father’s Day presents.

It could be scoring a deal on your father’s childhood home and letting him restore it. It could be a fishing camp, a cabin in the mountains or a resort property or retirement home. Or an income producing investment property that will keep providing for your sons and step sons or son in laws who are fathers.

Run Father’s Day Specials

A good home is so vital. Why not run a special for all the fathers that need to be investing in real estate or putting their family in new homes? Give great deals for the next few weeks and make a big deal about it. Maybe you don’t even need to limit it to fathers. There are a lot of mothers out there who have to play both roles too.

Exercise Your Freedom to Take Time Off

One of the best and most valuable things about being a real estate wholesaler is the freedom the set your own schedule and take time off when it is important. Use that! What’s the point in having that freedom if you don’t use it?

Flex your freedom and take time off with some fathers. It could be your father, a child who is a father, a nephew, sibling, grandfather, grandson, step father, or a random father out there who really needs support.

You can just hangout and have fun or spend some quality time together. Or why not give them the gift of learning about real estate wholesaling and transactional funding. It could change their life and their legacy. It could have a great impact for good on many people in the next generation. You can give them a book or course on wholesaling, share some of your resources like lenders and title companies. Or even better, take them under your wing for a day and show them how you do it.

What will you give this Father’s Day?

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Wholesaling Real Estate: How To Create Better Craigslist Ads

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on Tuesday, 27 March 2018
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Ready to create more effective Craigslist ads for you wholesale real estate deals?

Many real estate wholesalers are using Craigslist to promote their properties. It can be a viable platform for advertising real estate. Yet, how you structure your ads can make a world of a difference in the results you get.

If you aren’t getting the sales you expected, or are bogged down with unqualified leads and time consuming calls that leads nowhere, try out these tips…

Your Contact Info

Make sure your contact information is obvious, and that prospective buyers can get through to you in their preferred medium. Many buyers on Craigslist prefer making email inquiries. They don’t want to be sold or spend time on the phone unless it is a good fit. So, enable email replies, have a phone number, and any other contact details you are using regularly.

Pictures

The more pictures you can include the better. No one really expects all wholesale deals to be beautiful. What they want is to know the real deal to figure out if it is a match. You’ve got to close that gap if you want qualified leads to contact you. So, ugly or not, include as many photos as you can.

Repair Info

Many qualified house buyers may skip your ads if you aren’t clear on what repairs are needed or not. Some will assume the worst, and just move on. You don’t have to include a full inspection report, but if the electrical and plumbing is okay, say it. If the roof is still viable mention that.

Cash or Finance

It’s okay to say you only want cash buyers, if you really must have a cash buyer. That will filter out a lot of inquiries that don’t match. However, if you are willing to finance the property, make sure you say that upfront in your headline, or you’ll be missing buyers too.

Justify the Price

Some real estate ads get skipped because they sound too cheap or too good to be true. Buyers assume there is a bigger problem lurking. If you need to move it fast and are discounting it for speed, or condition, mention that.

If You Repost Ads

Serious buyers are checking Craigslist every day, week in and month out. If your headline was “this won’t last a week!” and then you repost 2 weeks later you lose credibility. Let them know why. Did the last deal fall through? Have you dropped the price? Get all that in your headline.

Lead to Effective Landing Pages

If you are going to try and draw people to your real estate website with your ad, make sure it takes them to an effective landing page. One which is unique, clear about the process, has the ability capture leads but also enables them to graze and find out more about you and your other inventory.

It’s okay not to be so corporate. Sometimes a personal touch and connection can be better than a cheap brand or cold corporate giant. It depends on who you are dealing with and the types of buyers you are trying to attract. Know your customers.

Respond

Don’t waste time posting house ads on Craigslist if you are not going to respond to leads. You are just going to burn potential connections and buyers.

Then if they see your ads again, they will probably report you as spam or a scam. When buyers do reach out, get their direct email address and phone in case you take your ad down or it expires.

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Real Estate Wholesaling: How To Stop Buyers & Sellers Cutting You Out

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on Thursday, 15 March 2018
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How can real estate wholesalers stop end buyers and sellers from cutting them out of the deal?

One big issue in the world of real estate wholesaling today is end buyers and sellers working together to cut investors out of the deal, and go behind their backs. They’ll connect, and make a separate deal on the sale, without having to give the wholesaler their profit or assignment fee. According to some real estate brokers this has also become more common in real estate in general over the past few years. It’s sad, but true. Going through all the work and investment to secure a deal, and then to be robbed and conned out of your compensation for all of that doesn’t just hurt. It is very expensive and can bankrupt you if it happens too often. What can you do about it?

Peer Pressure

Positive peer pressure and leaving appropriate online reviews can help. Don’t do business with those who have cut other investors out of their deals. There is no reason they won’t do the same to you. Leave appropriate reviews about the situation online to warn other investors. This may be a longer term play, but it will only get worse if good investors don’t make the effort to protect the industry.

Contracts

Make sure your contracts are clear and in writing. Consider including clauses which will deter these situations. Perhaps expanding the length of time your assignment fee or profit applies, and even if the deal falls apart. This may be hard to enforce legally, and is something you must consult a real estate attorney on every time. Yet, it may be a good deterrent.

Double Close

While this issue can come up in any scenario it is probably most common when wholesalers are trying to assign their contracts, and when buyer and seller find out about each other and the difference in prices. This can be avoided by using two separate closings. You purchase the wholsale property directly from the seller, and then have a second back to back closing with your end buyer. Normally this can be within 72 hours. Using transactional funding you don’t need to have your own cash or a conventional loan to do it.

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Good News For Real Estate Investors: The Stock Market Meltdown Has Begun

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on Friday, 09 February 2018
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The stock market has begun to enter a new correction phase. That’s great news for real estate investors. Here’s what to expect, and how to make the most of it…

Coverage by the Wall Street Journal shows the Dow diving over 10% in early February 2018. This could well be the beginning of the major correction that we’ve expecting for years. There will be some small rebounds before the real correction, and overcorrection, but the WSJ already reports sell-offs by big institutional investors and automated algorithms. The Dow alone could end up plunging over 15,000 points before it gets down to the baseline at the beginning of this bull run.

It’s always sad when hard working individuals and families lose their savings and retirement investments in these cyclical shifts, but the warning flags have been up for years. Many who drag their feet could easily lose 60% to 70% of their nest eggs in this correction.

On the bright side this trend is only likely to create a new surge in real estate investment. The necessary exodus from the stock market, sends investors running to safer, more tangible assets, and those with better growth prospects. That’s real estate.

This means more demand for buying investment properties, and lending private capital to real estate investors.

Or course, the darker side and larger impact when these slides happen is a drag on the economy, hurting homeowners, and with higher interest rates, often a pending correction in the housing market too.

So, in the short term we should see even better conditions for fast flipping. Then we’ll see more motivated sellers and distressed house deals. That’s when the deeper discounts come back.

Real estate wholesaling is the perfect property investment strategy for safely generating more cash, and profiting from this shift. You can get in at attractive prices, and out fast for profits. WIth wholesaling it doesn’t even really matter which direction the housing market is going in. If you build in enough spread, and price your deals right, you can still make great money, and move them fast in both highly competitive rising markets, and declining ones.

Now is the time to really make a push with marketing and educating others. Help them out of the stock market, and into better investments, and earn well while providing a valuable service.

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Real Estate Wholesalers: Now You Can Live Anywhere, Where Will You Live?

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on Thursday, 18 January 2018
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With virtual real estate wholesaling being made increasingly easier, investors can live anywhere they want. Where will you choose to live?

Virtual Wholesaling

Thanks to technology, real estate investors can live in one place, and wholesale houses anywhere in the country. It isn’t just possible, but more accurate than it has ever been before. For many it is an increasing necessity to be able to flip houses in other markets, and to stay diversified in multiple markets in order to keep profits up, business growing, and income consistent.

If you’ve got a laptop, or even just a phone, you can do it.

Driving Factors in Where We Choose to Live

As a mobile business owner, it can seem crazy to hear about people living in the street or out of RVs in high priced San Francisco and other cities. There is just no need to live in super-expensive neighborhoods, when you can work from anywhere. Of course, if those are the places you’d prefer to own your own home, and can afford it comfortably, why not?

Yet, for many others, there is far more profit to be retained, and earlier retirement in more affordable destinations.

Other drivers in this decision of where to have your home base this year may include property tax rates, and limitations on the mortgage interest deduction, and state and local taxes. For others it is being near family. It could be lifestyle. If you love the water, then go live in a top boating, surfing, or diving destination.

Or maybe you still want to optimize where you live for business. That may be in the heart of the most inventory right now. Or where the most investors and capital is located, so that you can build personal relationships.

Destinations

Here are some of the trending destinations this year:

Florida: for the sun, homestead exemptions, and no state income tax

Atlanta, Georgia: for a fast moving property market, fun environment, with all four seasons

Detroit: Still one of the most affordable cities in the US, and a great community of entrepreneurs

Nicaragua: One of the last truly affordable countries left in Central America

Dominican Republic: Proximity to US, easy residency requirements, weather

Thailand: Affordability, weather, culture, and a growing fan base of entrepreneurs

Where will you live?

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Wholesaling Real Estate: The Secrets Of Long Term Success

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on Thursday, 11 January 2018
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Want to keep on enjoying the incredible perks of wholesaling real estate?

Here are six secrets of the super successful over the long run…

Deliver What You Say

If there is one thing that makes or breaks a real estate wholesaler, and the business, it is delivering not just value, but what is presented. You may not have done a full appraisal, or full inspection, but you should represent the product well. Just like you hate walking into a hotel with your family on vacation to find it is nothing like the pictures. Or the opposite can really wow you.

Invest Yourself in Making Your Buyers Successful

The same goes for your sellers too. People can tell if you are just trying to make a buck off of them, or you are really eager to help them succeed. Help them win, and they’ll be able to buy more deals from you.

Systems

To go big, and long in this business, you’ve got to have systems. Systems for sourcing deals, distributing inventory, and making the closings work as smoothly as possible.

Embrace New Technology

Not every investor loves to play around with every new device, or test out new tech in their business. Yet, if is one of the easy ways to keep getting noticed, stand out, be more efficient, and get an edge. That runs the gamut from new phones with better cameras, to funding option, methods of communicating, and lead generation software.

Build a Long Pipeline

Short term thinkers are always desperately looking to close a deal today, and to pay the bills this month (maybe even for last month). That’s an expensive way to do business, and has many pitfalls. The savviest also work on building their future pipeline. Don’t throw away leads, just because they aren’t ready to close yet. If you start nurturing a bulging database now, you can have 10 or more deals coming in every month on autopilot for the years ahead. Treat everyone well, drip market to them via email, Facebook, and mail.

Build Your Brand

Don’t just market at people either. Devote time and budget to grow your brand each month. Then people will come to you. Be proactive about protecting your reputation. Especially online. Roll out content that will keep in front of your customers for years.

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Real Estate Wholesaling: Quick Tips To Start & Run A Lean Business

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on Thursday, 28 September 2017
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Want to get into real estate wholesaling, or just run a leaner business with more profit? Check out these quick tips…

 

Trim the Fat

 

There are many bills and expenses we accumulate that are really unnecessary, which can eat up a lot of profit, and can slow down growth. Real estate educator Larry Goins says that you can even flip houses today just using email. No phone needed. With free Wi-Fi growing, you may even be able to survive without an expensive phone service or contract. Just a phone, and using free internet to get online, and using Skype or Facetime for calls if you really feel you need to.


While you may want a laptop or tablet as well, know that you probably don’t need a top of line Mac. You can get by with something basic, and a backup device or two. A Dell or Acer will work just fine.

Some millionaire real estate agents are even ditching their cars in exchange for Uber.

Where You Live

Where you live can also make a massive difference in your net gains. You no longer need to live where you wholesale real estate. You can do it remotely from anywhere. Take advantage of that. You can live in Detroit dirt cheap and flip million dollar houses in the Hamptons. Or you can live in Nicaragua or Mexico and flip houses in Florida, Ohio, or California.

Find the Buyers First

Instead of finding the inventory, and then carrying the weight and just hoping you can sell, find the buyers first. Then you are essentially pre-selling and filling pre-orders.

Use Transactional Funding

Use Best Transaction Funding finance your deals, and back to back flips. That way you are in out and paid in hours. You can also get your closing costs and 100% of the funds you need covered.

Find the Best Markets

Find markets and motivated sellers that allow for least out of pocket expense. It’s traditional in some markets to have to put down a big deposit, and appraisal and inspection fees can be far higher on some properties than others. Find those that let you operate with as little risk as possible.

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Equifax Hack Could Make Real Estate Wholesaling More Important

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on Thursday, 14 September 2017
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Mega data hack at Equifax could make real estate wholesaling even more vital to numerous individuals and families.

The massive recent data hacking scandal at credit bureau Equifax could shake up the finances for millions of Americans. Could wholesaling real estate be a solution for putting your finances back together?

50% to 100% of Americans could have had sensitive data stolen through the Equifax data breach according to cybersecurity experts. That means hundreds of millions of individuals who could have their identities stolen, credit histories destroyed, and bank accounts emptied. Experts say it can take over a year to fix this issues, if they are ever fixed.

In the meantime many may find they are unable to get jobs or promotions, can’t rent new housing, and don’t qualify for traditional home loans. This is on top of the recent losses caused by major hurricanes Irma and Harvey.

Real estate wholesaling stands out as one of best ways to get back on top of finances. It’s fast, can produce quick results and big paydays, and perhaps most importantly - does not rely on having good credit or using your credit to qualify for financing. For these reasons many who find they need a new career, or an alternative real estate investment strategy in order to cover financial gaps, replace losses, and carve a new path forward may discover they have few other options.

There are still substantial opportunities to wholesale real estate across America. This can include single family homes, as well as commercial properties. Expect there to be more activity in this part of real estate over the next few months and years. While some may be able to hang on with current savings for a little while, the more time that passes, the more who may be impacted by the above factors. Those who are first to establish themselves in wholesaling will definitely have a great edge.

Have you been impacted by these factors already? Have you considered wholesaling?

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3 Ways To Overcome Your Fear Of Financing

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on Thursday, 24 August 2017
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Many real estate investors are allowing themselves to be held back by a fear of using financing. Here’s how to beat that…

Both would-be investors and already active investors can be held back by a fear of using financial leverage. They may fear being in debt, not want to take a hit by having their credit pulled, or just don’t trust the big old banks to pull through or treat them right. These are all understandable concerns. Yet, they don’t have to hold real estate investors back from their goals.

Realize That Leverage is a Must

Leverage is a must for many reasons. It can actually lower risk, help increase diversification, and is vital for 99% of the population to reach their financial goals and needs. Even if your income is great right now, it is essential to create a financial cushion, and build a nest egg for retirement. Only the top 5% of savers may have more than $250,000 in retirement savings. That’s just nowhere near what it going to take to retire today. Once you realize, leverage is a must, it is just a matter of finding the right type that fits your risk tolerance and values. And there are plenty of good options out there.

Non-Resource Loans

Avoiding bad personal debt, or depleting your credit score is smart. Yet, there are non-resource loans and business purpose financing options which don’t require to personally guarantee repayment. These loans are asset based. Either based on the value of the property, or its income production. There are mortgage lenders who offer these options, as well as private lenders who may be approached with your opportunities.

Transactional Funding

Transactional funding is one of these forms of financial leverage. Used in real estate wholesaling, transactional funding means you are in and out of the loan in just a matter of hours. With your deals pre-sold, you already have your exit. Best Transaction Funding requires no credit check, no income verification, and no appraisal, making it one of the fastest, surest, and most efficient types of leverage.

Get in touch and get your Proof of Funds Letter today…

 

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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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