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Laid Off: Is Wholesaling Real Estate The Answer?

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on Thursday, 09 March 2023
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Have you been laid off or see the possibility of it coming in your near future?


The world’s biggest and wealthiest companies have all joined in to create a massive layoff tsunami. In addition to hiring freezes, meaning no new jobs to get for many.


This will no doubt keep on trickling down from tech, banking, and other professional jobs to hit those businesses that have relied on their spending. In turn, that means even more people will lose their jobs.


This is largely a result of recent monetary policy designed to do just this. Recent announcements that the Fed is planning bigger rate hikes, and aiming for a higher peak will quite likely fuel high inflation in the short term.


At the same time, the data shows the value of retirement savings plummeting, leaving most with little to no financial back up.


Whether you see the potential for being laid off in the near future, or have already been let go, there is an urgent need to generate income now. Not in two months or six months, but to stay ahead of the bills due this month.


Secondary to that is rebuilding cash reserves and savings for larger expenses and the future.


Why Wholesaling Real Estate Stands Out As The Only Answer

For the majority in this situation, wholesaling real estate is really the only solution. And it is a highly attractive one.


First, it enables you to get paid fast. If you dive in, you can probably make money in wholesaling a lot faster than it would be to get a paycheck from a new job. Plus, there are no interviews to ace, no requirements to pass, or tests to take.


It is also one of the few things that can provide a high enough income to keep up and create a surplus.


Additionally, it provides lump sums of cash to rebuild reserves.


Unlike fixing and flipping houses or buying apartment buildings, you can use transactional funding to finance 100% of your purchase price and closing costs, so there is no money out of pocket.


This is also something you can do anytime, anywhere. You can do it from home. You can do it through a pandemic or recession. You get control of your financial future, and are not relying on others for your income or financial health.

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Home Sales Are Down, Financial Needs Are Up, Deals Are Plentiful

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on Wednesday, 22 February 2023
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Whether it is keeping up with living expenses, building a retirement fund, or creating your legacy, financial needs seem to be scaling fast.


The great news is that for those wholesaling and flipping houses, deals are also growing, with more motivated sellers, and record high prices.


Growing Financial Needs

Real inflation is now like a runaway train hurtling at full speed, with no sign of slowing down. People won’t stop spending, causing prices of groceries and other daily and monthly expenses to continually escalate and spiral up. $10 for a carton of eggs, or your car insurance going up 30% with no warning is just the tip of the iceberg.


At the same time Fidelity has warned retirement savings balances dropped by around 25% last year. Morgan Stanley predicts the S&P 500 could come down by another 25% plus in the next few months. Factoring in real inflation, those with IRAs or 401ks invested in stocks could see the real value of their retirement savings down almost 80% by the end of this year.


Meanwhile a new poll shows that most believe they need at least $3M to $5M to retire. While Vanguard reports the median retirement account balance they manage is less than $28,000.


That’s a big gap, and it’s growing.


There’s no question that real estate, and especially quick flips or wholesale deals can be exactly what is needed to supersize income, and regain, and grow your nest egg quickly.


Home Sales Are Down, But Records Are Being Set

Bloomberg reports that existing home sales have now fallen for 12 months in a row. Yet, some markets are still seeing organic appreciation of 30% plus year over year.


Luxury Palm Beach homes have recently been flipped for 86% returns, totalling tens of millions of dollars. A trailer in the Hamptons recently sold for almost $4M.


There are huge profits to be found, if you get out there and do the deals.


Making It Work

It’s true that giant financial institutions, banks, and corporations are struggling. They are slashing workers and closing offices. Even Walmart, which should be a top performer in this phase of the market is reporting it is down for the second year in a row, and is cutting its financial outlook.


Of course, many of these companies, including Upwork and Walmart are those that have been self-sabotaging by burning their best and most loyal customers, and stripping away customer service over the past year.


If you give bad deals, and treat people poorly, they are going to shop somewhere else.


So, as the number of motivated sellers increase, and there are great opportunities for fast flips, stand out with great, human service, and price your deals competitively, and you should have no problem exceeding your financial goals this year.

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Here’s What Fannie Mae’s Latest Forecast Isn’t Telling You

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on Thursday, 16 February 2023
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The latest economic forecast from mortgage giant Fannie Mae predicts house prices will fall by over 6% over the next two years. That doesn’t sound like much, but investors, and consumers also need to understand what they are heralding as loudly.


Home Prices Are Already Down 4x More Than They Predicted

Fannie Mae previously predicted that house prices would only fall 1.5% this year, and 1.4% next year. So, we are already talking about 2-4x deeper price drops, and many might argue it hasn’t even really started yet.


Or course this is in direct contrast to Goldman Sachs’ forecast, which says we’ve already seen those levels of drops and should bottom out this summer.


Many property owners, and recent sellers may also tell you that prices are already down even double, triple, or more than this forecast.


They Can Revise Back Data

Just as the Realtor’s Association back revised four years of data to show much lower numbers after 2008, any of these report publishers could go back later and say the cuts have already been 50% or greater more than they announced.


It’s All Local

This 6% number from Fannie Mae is a national ‘average’. Which really means that in some areas prices may still be going up by 30%, and they could be going down by 36% in others.


Make sure you have your own intelligence and pulse on the local market.


Low Interest Rates Are Irrelevant In many Cases

Fannie Mae is using the fact that interest rates have been low to claim there won’t be rate shock like in 2006 to 2008, and in turn no major crisis.


However, in the past year mortgage rates seem to have more than doubled. A much bigger increase than in 2008. Buyers were also paying 125% or more of actual values among the fierce competition. Many will still walk away. Many won’t be able to refinance. Many will fall behind and into default for other reasons.


Defaults Are Already Up

The latest bank data published by DistressedPro shows that defaults on both residential and commercial mortgage loans reverse course and started increasing again in the last three months of 2022.


While there haven’t been a tsunami of REOs yet, expect more defaults and foreclosures coming.


It’s a great time to be wholesaling houses on the way down this ladder, and making substantial profits. With both discounts available, and those buying into these forecasts expecting the market to rebound soon.

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Hidden Taxes To Impact Real Estate Businesses

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on Thursday, 08 September 2022
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Among the many types of inflation battering are many forms of taxes. Some of these new taxes and tax hikes have been highly publicized. Others have been snuck through in other bills and legislation.


You don’t want to end up with any more big surprises from the IRS or other taxing authorities at tax time in the new year. So, what do you need to know? How might you be able to find a better way to cleanly and legally avoid over taxation on your real estate business?


Disclaimer: This is purely for informational purposes, and should not be deemed as tax advice.


New Taxes For Real Estate Businesses

As a business owner you should already be aware that many taxes are going up. Potentially including income tax rates and property taxes. Depending on where you are headquartered and do business.


The budget reconciliation bill passed last year also established a new minimum tax for corporations.


However, Forbes has discovered another tax hidden in that bill which impacts small businesses and their workers, and there could be more.


The Hidden Retirement Tax

Hidden in the budget reconciliation bill is a new retirement plan tax discovered by two Forbes contributors.


Beginning in 2023 the ruling forces businesses with at least 5 employees to provide and automatically enroll employees in a retirement plan (IRA). 6% of their pay will be automatically rolled into this plan. Which will automatically increase to 10% of pay.


These funds must go into specifically mandated and managed plans.


The real catch that could trip up many real estate business owners is that this was written into law as a tax. So like Obamacare, if businesses don’t have this in place, they will be taxed $10 per day, per employee.


For those with 10 employees, that’s an extra $3,000 per month in taxes. Or $36,000 per year.


What To Do About It

The most obvious fix might be to comply with this mandate, and simply give all of your employees a 10% plus pay raise to account for the funds that they will be missing from their paycheck each week.


Other options include optimizing your team. You could combine roles, and get down to four employees to avoid this tax. Such as having your copywriter also handle your SEO, PR, and other marketing tasks.


The other option is to stick to remote and independent contractors only. Though you may need to reestablish and incorporate your business out of areas like California which are striving to classify all workers as employees.


You can simplify your business, by focusing on wholesaling houses instead of buy and hold, and in turn reducing the amount of employees you need.


Invest profits for more tax deductions, such as with cost segregation, and participating in building Airbnb units managed by partners.


If you are stuck with some properties, you could donate them for a tax break, like Jeff Bezos' ex-wife who just donated $55M in real estate.


Revisit your business structure. Is a S Corp, LLC, or trusts best for you and your taxes?


Above all, get a great CPA and accounting firm who can help you legally minimize taxes, and maximize your net gains.

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Keeping Deal Flow Alive When Your End Buyers Are Landlords

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on Thursday, 02 September 2021
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How do you keep your deal flow alive when you end buyers are landlords and buy and hold investors?


Pandemic lockdowns and ensuing restrictions, new policies and eviction bans have rocked everything rental property investors thought they knew about real estate. This might have put a dent in your deal flow if you’ve been wholesaling houses to them. So, how can you help them, and keep your business flowing?


The Big Eviction Ban Problem

Covid related restrictions and rules have impacted rental property operators in a variety of ways. One of the most notable is eviction bans. Regardless of them already being ruled unconstitutional, they are still out there.


In fact, new legislative bills like the Federal Disaster Housing Stability Act of 2021 are proposing both automatic and potentially never ending eviction bans.


That isn’t exactly making acquiring more rental properties very attractive to most buy and hold investors.


Here’s how you can help them, and keep your business firing on all cylinders too.


Serve Up Performing Rentals

No one wants to buy a non-performing rental with an occupant they may never be able to remove. Yet, the data suggests that the bulk of rental properties are performing well.


Find those with a track record and good tenants, and wholesale those deals instead.


Provide Deeper Discounts To Offset Risk

Investing decisions are all about the balance of risk and reward. If you can help lower your end buyer’s risk, and offer more promise of potential reward it could tip many more buyers in your favor, and lead to a lot more deals with each one.


One way to do this could be to offer deeper discounts to buyers; building in equity, and creating larger spreads for them.


Another option could be 12 to 24 month rental and income guarantees.


Turn Them Onto Smarter Leasing Structures

It is true that aside from Section 8 style government paid housing, the old traditional annual lease is probably dead. It is just far too much risk for any private and individual landlord to take on.


Yet, with a little creativity there may be many innovative leasing options that can avoid this attack on landlords, and help them pull in that cash flow.


This may include entire leases being paid in full in advance, switching to short term rentals, memberships, or even finding other ways to derive income from a property; such as renting it for storage or parking.

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Over 70% Say It’s A Bad Time To Buy A Home

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on Wednesday, 09 June 2021
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The overwhelming majority of US households now say they believe it is not a good time to buy a home. What does that mean for real estate investors?


According to the latest data from the Fannie Mae National Housing Survey more than 70% of respondents said they thought it was either not a good time, or it was a bad time to buy a home.


The percentage of those who thought it was a good time to buy has reportedly dropped to an all time low.


Those surveyed still said they would prefer to own a home instead of renting if they were to move, but they appear to have become worn out by bidding wars and see prices as just being far too high. So, if you’ve been frustrated in trying to find deals, you are certainly not alone.


Pending home sales also began sliding in early 2021. A leading indicator that closed homes sales and home prices may follow that trend in the coming months.


Talk of interest rate hikes could also accelerate this trend, making current prices unaffordable for millions more, and disqualifying many for mortgage loans. As we know, it was the timing of rate hikes which really pierced the real estate bubble of 2008.


For real estate investors, it is probably past peak time to list and sell properties on hand. Now is the time to get that done before there is any further cooling in home buyer appetite.


Investors who plan to keep using real estate as a source of income are also going to have to put in a little more effort to finding deals. There may still be a short window of opportunity in which even retail priced properties can be quickly flipped for profits in white hot markets.


Yet, those looking for better value deals and built in profit margins should be ramping up networking, marketing direct to owners, and building investor buyers lists, who will keep buying and rent units out if the retail market vaporizes.


There are still plenty of profits to be made in wholesaling houses. It is all about finding real deals at the right prices, and having qualified buyers lined up to take them right away.

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5 Reasons To Try Wholesaling Before You Give Up On Real Estate

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on Thursday, 15 October 2020
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If you are frustrated with or fearful of other types of real estate investment, here are five important reasons that you should try wholesaling before you quit.


Real estate is still the best tool for getting and staying ahead financially. Yet, between recent events and the common nuisances of other forms of real estate, it’s understandable that many are tired or worried about their strategies. Wholesaling could be the cure you’ve been looking for.


Here’s why…


No Tenants Or Guests

Renters and Airbnb guests can really test your patience with the human race. They drive many good landlords with great intentions of helping and making a difference out of the business. With wholesaling you are in and out, and don’t have to deal with them. You can choose properties with no tenants and let someone else deal with leasing if they choose to.


No Repairs Or Contractors

Rehabbing and renovating properties can be an inspiring dream. Completing projects can bring a lot of satisfaction. Yet, every experienced flipper knows that these projects notoriously cost more than expected and take longer than planned. As well as how incredibly challenging it is to find those mythical good contractors. Wholesalers don’t have to deal with any of that. No repairs. No improvements. No juggling construction and maintenance crews.


No Credit Or Acquisition Capital

If you fear putting your personal credit on the line or don’t have good credit and cash to buy properties, then wholesaling offers access to 100% financing, without using your personal credit. Keep your credit free and healthy for other emergencies and optimize your personal finances. Keep your cash in reserve for plugging income gaps and when you face unexpected expenses, like medical bills.


No Captive Equity

Real estate’s ability to appreciate rapidly can be one of its great appeals and benefits. Of course, it can also depreciate just as fast in other phases of the market. It may ultimately bounce back and rise higher again. Though who wants to see their down payment or sweat equity evaporated? With wholesaling you are in and out before the market can change on you. All of your capital can then be used on marketing and scaling, rather than sitting stagnant.


No Financing Hurdles

Wholesalers use transactional funding which doesn’t rely on the usual underwriting hurdles, income verification, personal credit or even appraisal reviews. It’s super fast.

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4 Ways To Wholesale Houses Smarter In 2020

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on Thursday, 10 September 2020
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This is one of the best phases of the real estate market for wholesalers. There is a strong mix of distressed properties and motivated sellers, as well as demand from buyers looking to relocate.


New wholesalers should find this a fantastic time to get in the game. Experienced investors should be scaling their businesses fast.


Still, no one wants to get caught holding dead weight properties. It doesn’t take many of those to pull you down and eat up your other profits. So, here’s how to be more confident in taking on deals, how to find more of them with less competition, and how to lower your risk and do more at the same time.


Build In A Downside Cushion

Most experienced investors started doing this the minute that COVID-19 hit. While so far the US housing market seems to have kept going up, with no lack of demand, there appears to be a lot of financial distress and defaults happening under the surface. There’s no telling when it will pop. Though if you build in a little extra cushion to your deals, then you should still be able to exit profitably, even if prices come down 10% overnight. This will also help in case mortgage lenders start backing out on your buyers at the last minute, or are cutting loan amounts to account for declining markets.


Check Closed Sales

At first glance the market seems to be incredibly strong. Listing prices are skyrocketing, and if you throw up a house listing ad on Craigslist you are bound to get a lot of messages, calls and even showings.


It is vital to differentiate between the lookers and pending sales versus how many transactions are actually closing. Check out the latest closed sales data. What are the real prices and any contributions or other adjustments that alter the net sales price?


Be sure you are pricing your offers accordingly. It is also worth prescreening buyers and compiling a list of those who are qualified, so you have them ready to go in advance.


Look For Aged & Expired Listings

In spite of how hot the media, Realtors and other investors say the market is, many listings have still been sitting on the market for a year or more. Many investors have been holding dead weight properties for at least that long. Big liabilities which cost them money every month.


Sellers can feel spoiled for choice when they first list and get lots of lookers. None of those deals may materialize. Or they just get burned out from talking to too many buyers and hosting too many showings, without a closing.


Then after a few weeks those listings get ignored. They are buried under all the new ones, and no one sees them.


This is a great time to go back to older listings and expired listings, while owners may be refreshed and yet more motivated to unload their homes to any true cash buyers.


Use 100% Financing

You want to go fast during these times. Don’t miss out on all the opportunities. Of course you don’t want to take on extra risk in uncertain times either. Using 100% financing and transactional funding is ideal for this. With no skin in the game, and deals already sold before you buy them, not only are you looking at pure profit plays, but no risk to your own capital.


Many other lenders may be cutting back, but Best Transaction Funding is still here. Ask about our VOD service today so that you can get out there and make more offers.

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Minimizing Taxes For Real Estate Investors

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on Thursday, 07 May 2020
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One of the biggest challenges facing real estate investors today is how to minimize taxes.


It is great to make so much money from wholesaling houses, but without some countermeasures you may find your taxes are going up just as fast as your income. With the 2020 extension for filing federal income taxes you may have pushed off this bill for a few more weeks. Here are some tweaks to make sure you pay out less and keep more of your gains this year, and every year.


Income tax Deductions

Make sure you are maximizing the amount of tax deductions you are taking. Don’t just over pay. One of the most obvious this year is taking the home office tax deductions. Others can include mortgage interest, education, health care expenses and charitable contributions.


Max Out Retirement Account Contributions

By now you should absolutely have a self-directed IRA or 401k account. You can also have them for your spouse and children. You may even be eligible to contribute to ESA and HSA accounts. You may still be able to get the deduction for 2019 and 2020 by maxing out deductions for both years. You can then use that money to invest in real estate.


Property Taxes

Property tax authorities are notorious for over charging each year and hoping property owners just don’t notice or bother to challenge them. This year more than ever you could be in a great position to cut these bills. Appeal your property tax bills and save thousands.


Harvesting Losses

Making investments in businesses that may show net losses for the next year or two can help offset any gains. Those paper losses can be used to offset future gains as well.


1031 Exchanges

Real estate wholesalers and flippers with too much cash can also move capital into more buy and hold, new construction and value add property deals, while continuing to defer taxes on capital gains under the protection of 1031 exchanges.


Go Offshore

The US has one of the harshest tax regimes on the planet. Thinking short and long term, this could be a smart moment to diversify into some offshore real estate assets. Especially somewhere you’d like to spend at least six months of the year in better weather, or retire. It could be a path to completely eliminating corporate and personal income taxes.

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Wholesaling Houses: Where Are The End Buyers Now?

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on Wednesday, 22 April 2020
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The market has changed. Where are the end buyers for your house flips and wholesale deals now?


The real estate investors who come out of 2020 on top are those who are the most flexible and quick to adjust to the changing times.


You may need to be more careful about the deals you buy, to ensure there is an end market demand for it, with able buyers. Know the buyers, and you’ll know your exit strategy before you get in, and the types of deals to be taking on now.


Wealthy Home Buyers & Buy And Hold Investors

Just a couple of weeks into the COVID-19 mess and Chase bank slashed availability of mortgages. Now requiring at least 20% down and a 700 plus credit score. That is going to eliminate a large portion of the population as potential buyers.


In contrast, many wealthy individuals and families are pulling their money out of the stock market, retirement plans and the banks to put their money into real estate. Some are buying half a dozen units or more to protect their wealth.


They have all cash, or can put down 50% and still get a mortgage relatively easily.


Movers Escaping The City

We are being told that even if quarantine restrictions are temporarily eased that we face another coronavirus outbreak in the winter, and it could be worse. Some are warning this could be a multi-year pandemic.


Who wants to be stuck in a condo in the city, with fast rising crime during times like these?


Expect more buyers cashing out their urban homes and moving to smaller towns and rural areas. Especially now that the office has gone the way of the dinosaur and remote work is here to stay.


Those in this group who act quickly can still walk away from their properties with cash to buy something else.


Real Estate Syndicators & Funds

Real estate syndicators and fund managers are also having to pivot and diversify in order to deploy capital and deliver on promises to their own capital investors.


You can serve them wholesale deals. Even better if you can pull together portfolios to provide the bulk buys they need to make efficient transactions.


Property Owners With High Amounts Of Equity

With the exception of transactional funding for real estate wholesalers, it is getting much harder to find loans to purchase real estate out there.


One exception to this may be homeowners and rental property investors who can refinance or offer high equity properties as collateral and gain bridge loans to make new acquisitions.


COVID-19 Heirs

Even before this virus we were in the middle of one of the biggest wealth transfer periods of our history. It’s a tragic situation. Yet, many of those who have passed on in this crisis may be glad to see their heirs now able to use their inheritance to go buy homes in safer areas, or use their legacy to go invest and create new streams of income and businesses in real estate which will keep providing for future generations of the family.

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Independence Day 2019 For Real Estate Investing

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on Thursday, 20 June 2019
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The 4th of July is on us, and it can be one of the most pivotal moments of the year for real estate investors. How will you get the most out of it?


Are You Fully Flexing Your Freedom?

Some people may really feel their freedoms are being cramped. Yet, millions of people flock to this country every year for a chance at opportunity and to enjoy our freedoms. Billions would come if they could. To fail to take advantage of the freedom we have is a terrible waste.


We have an amazing opportunity just to be able to buy and invest in real estate. If you’re willing to hustle, you can build a million dollar business in almost no time at all, and be enjoying a 1% income and plenty of time freedom.


You don’t need a lot of money, time, a college education or credit to start wholesaling houses. Best Transaction Funding will even give you 100% of the funds you need to finance your wholesale deals. The only thing crazier than that is to not take advantage of it.


We’ve crossed the halfway point in the year. If you haven’t reached your goals yet, make this the moment you decide to get on track and do something about it.


Go Free Some People

Contemplating all the sacrifice made for these freedoms, and the birth of this country in fighting off high taxes and debt, it’s ironic how many people feel trapped in their homes or who are facing foreclosure due to high property taxes. You have the freedom to get out there and help them this weekend. You have the ability to set them free from that. It’s a gift. Flex it.


Give Others a Chance at the American Dream

Owning a home is still a core part of the American Dream, you can help make that happen, and make their dreams and aspirations a reality. It’s an incredible gift to be able to be a part of that. You can do this as a house flipper or wholesaler. Get out there and serve up some homes.


Celebrate Your Freedom!

Whether you are just waking up to the opportunities and resources available to you, or you’ve already blown your own mind with what you can achieve through real estate investing, celebrate it.


Take time out this Independence Day to really celebrate all of this.


Network & Build Relationships

If you are still struggling to get some traction toward these goals or are trying to get to the next level, the 4th of July weekend is a fantastic time to network and build relationships to make it happen.


Get out and attend local events or host your own. Break out the BBQ and light it up. You’re free to grill meatless burgers or real ones, it’s up to you.


Connect with others you can learn from as well as those who you can help.

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The Pros & Cons Of Wholesaling Houses In Small Cities Vs. Big Ones

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on Thursday, 23 May 2019
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What are the advantages and disadvantages of wholesaling houses in smaller cities versus larger cities?


Larger cities can definitely offer more action, prestige, and options. Financing is typically easier as lenders prefer markets they know. Yet, more and more real estate experts are heralding the benefits of investing in the suburbs and small towns. So, how do they really stack up?


The Pros of Wholesaling in Smaller Cities


1. Less Competition


Fewer investors operate in smaller locations, meaning there may be less price pressure and may be more value for wholesalers and house flippers. You can potentially also do more deals with fewer conversations thanks to not being out bid all the time.


2. Lower Prices


The suburbs and small towns typically come with much cheaper property prices. That can be attractive for new investors trying to get in, as well as when buyers and renters are fleeing unaffordable cities and downtowns.


3. Easy to Dominate


One billboard, one magazine and newspaper ad, a couple of signs and a couple hundred dollars a month on Google Ads might make you the most visible and dominate brand in a small market very quickly.


4. Great Growth Opportunities


Lower prices and rents now, mean more room for growth. There will be more room to grow in the number of properties too.


The Cons of Wholesaling in Smaller Cities


1. Less Demand


A smaller market also means less demand from a smaller pool of prospects.


2. Lower Dollar Amounts


Cheaper homes and lower entry prices may sound good. They can make it easy to mark up properties 50% or 100%. Yet, the dollar amounts are small. You can by for $50,000 and sell for $100,000, but still only make $50k. In a big luxury market a modest 10% profit margin may at least give you double or 4x that.


3. Returns on Marketing


Smaller markets mean fewer eyes on your marketing. You may only have a couple hundred online searches for your product a month. A few thousand vehicles go past your signs, and a few hundred blog readers. In bigger markets you might get a million views for the same outlay.


4. Little Economic Strength


The one thing that has kept most investors out of small towns, besides the lending issue has been the economic fundamentals. They have little diversification. Normally only one or two major employers. Perhaps all focused on farming and agriculture. It doesn’t take much to crush those towns and leave them with high unemployment. However, this is changing, provided there is good internet, there are millions of high paying remote jobs available that can pay a lot more than local ones.


Where will you invest?

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Should Wholesalers Inspect Properties Before Flipping?

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on Thursday, 14 February 2019
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Is it worth getting a home inspection if you are wholesaling houses? Many don’t. Yet, there could be far more profit it in than you think. Here’s why, and how much difference it could make to you…


The Pros & Cons of Virtual Wholesaling

Virtual wholesaling or ‘real estate day trading’ has become much more popular in the past few years. This is essentially just finding and flipping houses online. Often out of area and sight unseen. That has worked well for some. Especially in a speculative and fast growing market. Though if you track ads for properties on Craigslist, you may find some have been stuck with them for a year or more.


Un-inspected, sight unseen deals can be a goldmine. They can also be highly risky and become dead weight on your books if you own them. Or damage your reputation if you keep backing out of contracts.


The Value of Personal Inspections

Even if you aren’t a professional home inspector or contractor, there is value in getting out in person to see what you are really buying.


It can reveal a lot about location and views, as well as property condition. Many things can still go unnoticed using Google and listing photos. Big things like the electric not being updated, or the fact there is only the front of a house and nothing else.


The Advantage of Professional Home Inspections

Hiring a professional local home inspector can add a lot more value than you think. It may even be more efficient than going yourself. Especially as most of the big and expensive repairs may not be seen by your eye on the surface. This includes items like plumbing, electric, roofs, mold, foundations, etc.


You may not intend to fix any of these items as a wholesaler. Yet, it can make all the difference in how fast you can flip them for, and for how much.


First of all, this is about certainty and de-risking the investment for end buyers. There is nothing that kills a sale or investment like uncertainty. That’s true for any consumer and business item. It’s the unknown that breaks you. Without knowing the real situation, any smart end buyer will have to price in the worst case scenario. That is a complete rebuild or teardown. They may still buy that, but at least they know what they are getting into.

Compare that with having an inspection and knowing the private well, electric, foundation, roof and AC are okay. Even if the rest of the house is a complete gut rehab, that can instantly add $50,000 or more in real value. Even if one of these things is an issue, the end buyer can comfortably offer a lot more. You’ll also be able to make the property appeal to a far larger buyer pool.


Imagine two listings side by side. Both distressed looking properties. One is a complete mystery. The other has a home inspection report that shows most of the mechanicals and structural items are good. Both are priced the same. Which do you buy?


That could easily make a home inspection the best ROI of anything you can do.


If it’s not possible to inspect, then you may be able to get your own remote teammate out with a camera, along with a contractor. Or ask if the seller has a recent inspection report they can provide.

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How To Flex Your Advantages As A New Real Estate Wholesaler

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on Monday, 03 December 2018
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As a newer wholesaler you’ve got some great advantages over all other investors. Make sure you are using them!

It’s easy to see the disadvantages when you are a newer real estate investor or wholesaler. Yet, you also have many advantages. You are what keeps established companies up at night. They know that if only you understand how many advantages you have, and if you use them and are innovative and creative and hustle, you can take a big bite out of their business. Maybe even disrupt the industry.

 

Speed of Making Decisions

One of the great abilities you have as a solo investor or lean team is the ability to make decisions faster. The bigger you get, the more funding you raise and more people involved, the longer it takes to make decisions and act on opportunities. So, move fast.

 

Ability to Move to New Markets

You don’t have giant offices, your own servers, or need to pay employees hefty five or six figure relocation packages to do deals in new states and cities. You can do deals on the other side of the country tomorrow.

 

Underestimated

You’re capable of a lot more than you think. Often way more than a lot of the competition thinks. If they don’t think you are a threat you can get more out of your resources without butting heads with them. Don’t go head to head with larger competitors with more funds and bigger teams and more technology. Stay under the radar, and keep gaining traction until you are stronger.

 

Being Able to Take Risks

Big companies are often criticized for becoming boring. Even music artists often stop taking risks or testing exciting things once they make a name for themselves. It’s easy to criticize until you are there. After years or decades of building up a name for themselves, and having thousands of employees and investors counting on them, they can’t afford to be very interesting anymore. You can. You can be adventurous with marketing campaigns. You can test out new things. If it doesn’t work, no one will remember. You don’t have anything to lose. If it works, it could be your ticket to the big time.

Be interesting with your blogs, the language on your website, your design, your mail, the hooks you advertise and your branding.

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Follow Up: The Key To Wholesaling More Houses

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on Thursday, 01 November 2018
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Want to wholesale more houses? Forget trying to make ‘viral’ videos, getting on TV, or relying on squeezing in an 80 hour week of hard cold prospecting. The one thing that really separates the dreamers from the deal doers is the follow up.


The truth is that there is no one magic bullet for marketing for wholesaling houses. You can still generate connections in a wide variety of ways. You can mail, blog, run Google Ads, network and knock on doors, and even use bandit signs and car magnets. It’s not that hard to drive traffic to your website, Facebook traffic or even phone calls.


However, the deeper truth is that at least 70% of those contacts won’t take action and become real customers on the first connection. Many will require 7 different touches to convert. This is even truer in real estate where transactions are so big, emotional and take so long to close.


So, if you can’t expect three quarters of your ‘leads’ to close on the first contact, the key to closing more wholesale house deals is follow up.


How to Follow Up

It used to be simple. The phone was about your only tool to keep following up. Now everyone has their own preferred medium for communicating. That may be phone, text, email, social, or even the mail. If you aren’t speaking their language, you are just banging your head against the wall. Try to connect in a variety of ways, ask how they prefer to be contacted, and actually listen.


How Much to Follow Up

If you give up after one or two calls or emails you are barely average today. You’ve got to follow up enough to stand out from the competition, and still be there when they give up.

 

Stop just before you become so annoying they don’t want to hear what you have to say - no matter how good the deal is.


How to Manage it

Even though follow up is so important, it has to stay affordable and efficient. That doesn’t mean skimping, or you are burning all your upfront marketing money invested, and profits on the deals you do close.


So automate and delegate. Use email drip campaigns, broadcast, remarketing ads, and virtual assistants. Then you should only be spending your time speaking with the most qualified and ready to act leads. Then you can do your best with them, and enjoy a lot more profit and ROI on your time, and make more money in less time.

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Power Tips For Wholesaling Houses With Tenants

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on Thursday, 27 September 2018
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Wholesaling houses with tenants? It can be a highly profitable niche. It can also be a pain, with issues that can hurt your reputation if your end buyers aren’t getting what they expected.


Here are some quick power tips that can help real estate wholesalers turn properties with trouble and non-performing tenants into big profit centers.


Be Careful with Upfront Inspections & Walkthroughs

Visiting and going through the property in advance of purchase can be quite stressful for tenants. Many are going to be scared as to their future housing. If they have already been butting heads with the current owner that can escalate quickly. You don’t want to get off on the wrong foot with the tenant or get into a legal situation.


Get Estoppel Letters

You can’t rely on what the seller says about the lease or status of the tenant. Your title company or closing attorney should obtain estoppel letters, and get the tenant’s side of the story as well.


Communication, Communication, Communication

When people are scared, feel threatened, or they feel their family and kids are under threat and are backed into a corner they can obviously act pretty emotionally. It’s often the uncertainty that gets them most worked up. Be communicative. Especially as you are closing on your purchase transaction. If possible, have your property manager reach out to the tenant in advance. Let them know their options. Tell them what’s going on. Keep them calm. It can make all the difference in the world.


Take Advantage of the Fresh Relationship

Landlord tenant relationships can go off the rails and sour fast. It can be really hard to salvage them at that point. A new owner entering the scene can make all the difference. Take advantage of that to its fullest. Listen and let them vent about the previous owner. Be on their team. Give them confidence in their situation and ability to stay if you’ll let them, or their ability to find somewhere new.


Find Ways to Add Value

This is one of those situations in which real estate investors can easily and quickly add a lot of value and equity to a property. With a new owner a non-performing tenant may be eager to work things out. If they start performing the property is worth more. If that tenant won’t work, have a list and real estate agents on call. Find the renter somewhere to go, and have qualified tenants lined up that you can move in right away. You may also add value simply by helping tenants exit. A cash for keys offer, notice of non-renewal, or notice to vacate, can all work. It can even all be done before you actually close.


Finally, make sure end buyers are totally clued in. Make sure they know what they are buying and getting with the tenant. This will preserve relationships, your reputation and repeat business. Put everything in writing.

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It’s Time To Flex Your Freedom In Real Estate

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on Wednesday, 04 July 2018
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With Independence Day fresh in our minds, it’s time to flex our freedom in real estate.

Hopefully you’ve had the chance to celebrate the 4th of July, and maybe even take in some spectacular firework displays, spend time with great people, eat something fresh off the grill and to contemplate just how valuable our freedom is.

Sure, many had the freedom to take a day off and celebrate this week, but we’ve all got some even more important basic freedoms we can’t take for granted. The freedom to think, plan, work, give, start something new and take action.

The Freedom to Set Bigger Goals

Setting bigger goals costs you nothing, but can help you gain everything. If you are already wholesaling a house or two a month, why not set a goal to be doing 4 to 10 deals a month by next July? If you are doing 20, shoot for 20. With access to the best transactional funding your only limit is the goals you set for yourself.

Freedom to Get Started in Real Estate

You’ve got the freedom to get started in real estate if you haven’t yet. That’s huge. Billions of people have never had this opportunity and never will have an opportunity like this to change the dynamics of their finances, future and level of freedom and independence. How can we not take advantage of this?

Start Creating a Legacy

Our current freedom and economic strength is the legacy of a lot of work, sacrifice and big vision. Making great money every month as a real estate wholesaler is a good start. Stacking up enough wealth for retirement is even better. Though if you haven’t started working on your legacy, then it’s time to seize that freedom as well. That may be setting up a trust and putting real estate assets in it for your heirs. It could be building and donating a library or museum. You can even put your name on it if you like. Or it could be building an entire new smarter community. What will your legacy be?

Freedom to Give

We don’t just have the freedom to work, invest and gain, but to give and pay it forward to others as well. Perhaps you can start your own foundation. Support or plan a backpack drive for the upcoming school season. Or if you are still just gaining traction yourself, why not give by teaching and sharing what you’ve learned, or bringing on an intern, and empowering others to enjoy the freedoms you have?

What will you do with your freedom today?

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Wholesaling Real Estate On Mother’s Day 2018

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on Thursday, 03 May 2018
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Mother’s Day is easily one of the most important days of the year. We wouldn’t be here without mothers. Wholesaling real estate is also important. It can empower women to achieve more of what they want, and is a powerful tool for taking care of the moms in our lives.


Buying & Selling Real Estate

There are a lot of mothers out there who need a break. Some really need a good ethical wholesaler to give them access to a real deal on a home. Others need access to quality real estate investment opportunities. Many still need a solution to exit a bad situation and the burden of a property that isn’t helping them. Wholesalers can really help in this space.


Wholesaling Real Estate For Mom’s

Wholesaling real estate is a great way to get ahead financially, give your kids the life you want, have the free time to do life with them, and have the time and surplus money to treat yourself to those shopping sprees and spa days that you really need and deserve.


This makes this Mother’s Day a great day to commit to getting started in wholesaling real estate. If you know a mother who could really benefit from doing this, then perhaps gifting her a book on real estate wholesaling or paying for her to attend a course is the best gift you can give her this year. One that will go on giving for a lifetime and generations.


Using Wholesaling to Fund Your Mother’s Day Gifts

Wholesaling houses is an awesome way to make cash fast. It can be used to raise the money you need to give moms awesome gifts. It can be a tool to find and give the gift of real estate. Maybe there are partners, spouses, daughters or parents in your life that could really use  a new condo, income property, or a space in your own assisted living facility.


Taking Time for the Moms in Your Life

Aside from the money, the great thing about wholesaling is the freedom to take special days off, like Mother’s Day. Spend it with your moms, grandmothers, daughters that will be future moms, and neighbors who are moms.


Remember that you don’t need any more cash than you have now to start wholesaling more real estate, if you use transactional funding.

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Why More Investors Are Switching To Wholesaling

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on Wednesday, 01 November 2017
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Why are more investors moving into real estate wholesaling?


There are many ways to invest in real estate. So, why are more investors turning from rehabbing and flipping or rentals to wholesaling houses?


Looming Tax Changes


The coming tax tsunami which has threatened to strip away common tax deductions like mortgage interest and property taxes paid could make it far less attractive and profitable to own rental homes by 2018. Wholesaling houses offers a way to get in and out, with great margins, and virtually zero holding costs.


Bigger Paydays


Not many people are really getting rich on rentals. It can take controlling a lot of property to generate a decent income from rents. You might need 20 average rentals owned free and clear to deliver the same amount of cash in one year, that you can make on a flip deal in one month.


Perfect for the Changing Market


While there is no telling when the market shift will officially be called, it is pretty clear that there are changes happening. No one wants to be left holding the hot potato like back in 2006. Wholesaling is the perfect strategy for both declining markets and rapidly appreciating ones.


Lower Risk, Higher Returns


Compared to being a lender, being in construction, or being a landlord, wholesaling is far less risky. Yet, the returns, especially on a cash on cash basis when using transactional funding, or an annual basis can easily blow away the ROI on rentals or private lending.


It’s Scalable


You can do far more wholesale deals in a month than you can acquire and manage rental units, or renovate houses. It’s also far easier to scale back when you want to go on vacation, are ready to retire, family emergencies arise, or the economy calls for it.


Why do you wholesale?

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Wholesaling Houses: 5 Things That Separate The Best From The Rest

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on Thursday, 05 October 2017
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What separates the best and most successful in wholesaling houses from everyone else?

Many are being attracted to real estate wholesaling. Yet, there continues to be a big divide between the few who are doing 80% of the business, and the masses kicking around deals without much in the way of results. What do top performers do differently?

Think Big

The most successful house wholesalers are typically those that think the biggest. They aren’t looking to make $100k per year. They are looking to make $100k or more per month. They don’t shoot for a handful of deals per month. They are looking for 10 plus deals each month. They have really big visions.


Serious About Finding Good Deals

Great wholesalers are serious about finding very good deals. They are looking for deep discounts, and fat spreads. They are also looking for houses that they can resell. They are looking for 100% returns, $100k spreads, not just a handful of bills, nor deadbeat properties that are just going to be a nightmare.


Care About Presenting Good Deals

One of the biggest differentiating factors is that they care about being able to present good deals to their buyers, and are willing to invest the time and effort in that presentation. They know that their success and ability to stay in the business relies on it. If they just throw up properties that have big lurking issues or un-insurable titles, they are going to burn their buyers bad. At best they’d lose their reputation and any chance at repeat and referral business. Solid wholesalers want their buyers to be profitable. They want them to succeed, and come running back for more, and for them to easily be able to make a good decision based on the information provided.

They Understand Real Estate Financing

This will make or break investors. There are a lot of nuances in mortgage financing. Wrong assumptions have bankrupted many new investors. Those with the best understanding of it have the ability to move with confidence, and complete deals others can’t.

Invest in Building a Great Brand

In order to have more negotiating power, to have prospects seeking you out, to win great investors and vendors, and to hit full potential, you’ve got to build a brand. It has to be memorable, recognizable, and carry value. Leading wholesalers do this by giving their branding the thought it deserves, bringing in a great team, and putting out quality materials.

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