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Get Ready for the Back to School Real Estate Rush

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on Thursday, 07 July 2016
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Real estate investors are about to head into one of the busiest times of the year. How can you take full advantage of the opportunities?

Back to school madness will be here before we know it. Most industry outsiders and new Realtors and investors are taught the time to get busy is late spring and summer. Yet, those last few weeks of summer break can be among the most profitable and critical. So where should investors be focusing?

There are a lot of lookers early in the summer. But when back to school dates start looming buyers and sellers get serious. They are on a deadline. Buyers want to be moved in and on a schedule before school starts. And they need to be in the right school district. Many also need to sell their old homes, if not to be able to buy, but to shed the debt and live comfortably without the extra mortgage.

This high level of motivation means opportunities. It means buyers that need to, and will buy, and will bid high. Sellers must sell, and for many that means being willing to sell at a discount or on terms.

Capitalizing on this surge in real estate transaction activity is also essential for bulking up on capital for the weeks ahead. Generate cash from wholesaling to buy up in the softer months to come. After the back to school rush typically comes the seasonal dip in listing prices. This could be compounded this year by the presidential election.

How do you get more of this business? Get visible by doing the bold marketing your competition isn’t. Get a niche – perhaps offering speed of closing as your advantage. Provide school district information. Maybe include offers to help with moving and school supplies (note that some kids are going to need cars this year, and that’s a big expense).

When you start to make gains and pull in the profits from this activity don’t forget to participate in back pack drives and support the local community.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of flash 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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Can Transactional Funding & Real Estate Crowdfunding Benefit Each Other?

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on Wednesday, 18 May 2016
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Can transactional funding lenders and crowdfunding campaigns be used together for even greater results?

The debates over alternative and hard money lenders and crowdfunding portals bumping heads are increasing. Some have posed that crowdfunding can offer cheaper money. Others recognize that successful crowdfunding campaigns can cost a lot of money, and can be extremely time intensive, not to mention slow to fund. Some debate whether one of these capital sources will replace the other.

Could they actually work together? If harmony between these funding options possible? Could both transactional funding and crowd funded capital be used in the same deals?

There are a number of obvious differences between these two types of borrowing. Transactional funding lenders can sometimes charge higher rates in exchange for faster service and ease of obtaining cash, depending on the individual scenario. In contrast crowdfunding can offer the advantages of having many different parties involved in your project (some may be hard money lenders too). But expect to spend 10% to 30% of the funding goal on marketing, and keep in mind that it can take months to secure finances through this channel.

The truth is that there is not one answer to the transactional funding versus crowdfunding question. That’s like asking if food or drink is better. You probably need both. You’ll need or want each at different times depending on the situation and timing.

Perhaps one of the best blended strategies for investors in this arena is making an acquisition quickly with transactional funding, and then once the real estate is controlled – paying off that loan with funds from the crowd. Investors can also augment hard money they receive by raising the down payment from the crowd, or raising additional funds to make improvements from the crowd. Or crowdfunding campaigns can be used to improve a surrounding area; to aid in revitalization and elevating property values. How about using hard money to cash out the crowd and return their capital?

 

The options are endless. Perhaps these strategies and tactics are what more of the media should be focusing on to actually serve real estate investors well.

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of flash funding and hard money loans for real estate investors in America. Get a quote, and fund your next deal fast…

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5 Productivity Boosting Tools for Real Estate Investors

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on Wednesday, 11 May 2016
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Elite productivity levels are key to empowering investors to get the best ROI on their time.

It’s not too difficult to make great money in real estate. Yet, to reach your full financial potential and to still be able to enjoy the free time you chose this path for it takes a conscious effort to maximize every minute.

Check out some of the tools that could help you get more done in less time…

1. Upwork

Upwork is the merger of outsourcing giants oDesk and Elance. Here you’ll find thousands of freelancers to help with your tasks. Perhaps even more importantly Upwork offers automated support for tracking the productivity of remote workers, bookkeeping, 1099s, and more.

2. FreshBooks

FreshBooks is great for all those other remote employees and contractors you haven’t hired through a platform. Time tracking tools can be used to monitor work activity of your in-house team while you are away from the office, and to track how much time you are really spending on each deal. It also makes recording expenses easy so that you are prepared to maximize your deductions when it comes to tax time.

3. Trello

Trello is one of the easiest to use project management dashboards. Load your tasks, delegate them to team members, and track progress and store documents all in one place. This cuts down on a ton of communication time and miscommunication.

4. WordPress

A high percentage of websites and blogs now all run on WordPress. Each website designer out there will have their own preferred system, but this works just fine for some pretty strong companies. The easy to use content management system which most of your team will already be familiar with removes training challenges and expense, makes it easy for you to control your own site and slash costly designer labor hours.

5. Google

The iPhone might look cute, but Google really packs a punch when it comes to integrated free and low cost business tools and apps. From Gmail to Drive, and Hangouts to internet marketing tools there shouldn’t be too much you need to do that you can’t do with Google. It’s a great starting suite of tools before you feel you need to branch out and pay for something more robust.

Those looking to slash the time it takes to fund their real estate deals will also find flash funding from Best Transaction Funding can provide rapid, no hassle cash for wholesale deals. For some this will save weeks or months of trying to deal with banks.

What are your favorite productivity tools?

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Tap This Controversial Real Estate Niche For More Motivated Sellers

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on Thursday, 24 March 2016
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Looking for more motivated seller, and buyer leads?

Check out this underserved niche, and provide much needed help, while stacking up your real estate deal pipeline…

46,523 New Real Estate Leads Per Week

Think there aren’t enough motivated real estate leads out there? Check these stats…

Every week over 46,000 people get divorced

That’s almost 100,000 individuals motivated to fix their housing situation

That’s 6,646 cases per day

277 per hour

That’s on top of the even larger pool of separations and breakups of unmarried couples.

What happens when couples split? One or both of the individuals need to find somewhere else to live. In most cases the best scenario is for the home to be sold. Even if this couple doesn’t own it, the landlord is quickly going to be distressed when the rent stops coming in.

Motivated Sellers

When couples that own homes spilt, it is normally cleanest to sell the home as fast as possible. This sheds debt, makes housing payments affordable, and eases the stress of negotiating settlements. Speed is the most important factor here. Without a fast closing the debt will build up.

Buyers & Renters

One or both of the pair will need new housing, even if they don’t sell the old home immediately. Some may be walking away with multi-million dollar settlements to purchase another property as a cash buyer fast. Others may need to rent for a little while before purchasing. Think lease options and rent to own deals. All of this group are incredibly motivated to move fast.

Where to Find the Leads

New and older divorce records online and in the paper

Leads from moving companies

Realtors and mortgage brokers

Divorce and family law attorneys

Facebook

Help & Win

No one wants to take advantage of anyone in a tight and stressful spot. Most know it can be quirky to get in the middle of someone else’ business. However, these people really, desperately need help. They need a roof over their heads and for their kids, today. They need to stop the bleed on homes they can no longer afford, or don’t want to be liable for. Help them. And if you really serve them well, you can dominate this niche, and find thousands of real estate leads each month.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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Real Estate Wholesaling: How to Find the Buyers and Win

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on Thursday, 28 August 2014
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Winning big in wholesaling houses is increasingly becoming about having the buyers. So where are they, and how can real estate investors harvest vast amounts of end buyers for their deals?

At the peak of the last housing boom some wholesalers were pocketing $1M a month flipping houses. Homes could literally be picked up on the open market and turned for $50,000 to $100,000 spreads without lifting a hammer to any DIY work. Those that made the most were those that had the buyers lined up.

While end buyers may be a little savvier, informed and demanding today, and asset prices are rising again, there will be no shortage of deal volume for those with significant pools of ready and qualified buyers.

Some housing markets have continued to see foreclosures increase for the two years through mid-2014. Even strongholds like Southern California which had reported default activity slowing, was revealed to have seen a new uptick in foreclosures in the summer, according to RealtyTrac. There are still plenty of deals from HUD, auctions, in bulk from other investors, and even the MLS, many just coming online after sitting vacant for years. However, even as these prized distressed property types fade, robust appreciation and demand will keep wholesalers flush with inventory and potential deals.

News this week from one of the new conduit lenders providing blanket mortgages for single family rentals, that it is slashing underwriting requirements on multifamily loans is likely a trend which will continue to spill over to the residential home loan market. Giving the green light to borrowers with charge offs, bankruptcies, foreclosures, and credit scores as low as 600, we are definitely approaching subprime underwriting territory again. This will open the flood gates for both first time and returning home buyers.

With easy access to unlimited flash funding for wholesaling from BestTransactionFunding.com the only obstacle between investors and their goals is having buyers in place.

So where are the buyers? How can wholesalers continue to compete as brokerages consolidate and strengthen branding, and Zillow begins rolling out its strategy in the wake of the Trulia buyout?

LIVE EVENTS

While many investors have retreated to their own caves, in front of giant monitors, and settled for webinars in recent years, live events continue to provide fertile ground for deal making. Attendees get pumped up by other speakers and are in the optimal zone to take action, while many are already flying in with blank checks to write for attractive acquisitions.

GROOMING RENTERS

Big thinking, forward thinking property investors shouldn’t ignore renters. The competition you envy for the business they are doing today, is often a result of years of planting seeds and fertilizing. Take note. Get ahead, and start grooming entire complexes of renters to become home buyers over the next 24 months. Reaching out through simple mediums such as door hangers and home buyer education seminars can do wonders.

TAP THE REAL ESTATE GURUS

Many real estate investing ‘gurus’ have gone to all the trouble of developing education programs, creating seminar materials, writing books, and going on the speaking circuit just to build massive deal funnels. Of course, very few of their students will be top producers. So stepping in with a silver platter of good wholesale deals could be just what they ordered. Plus, they may have incredible resources for buying future deals.

SHAKE UP YOUR ONLINE MARKETING

To win in online real estate marketing today, you’ve got to be willing to be different, and flexible. Facebook has officially snubbed real estate marketers, and Google will constantly change its search algorithms and rankings. Forget all the rules (well most of them), and ‘must-haves’ and just focus on solving problems, being interesting, and being unique. You can always bulk up your inflow of buyer leads on-demand, at any time with Google Adwords.

GET HYPER-LOCAL

The irony of the internet, and the billions being spent on online real estate marketing development, is that it is essentially all trying to take us full circle back to being local and personally connected. Online marketing is great, often can produce the best ROI, and can be essential when working long distance. But, if investors got out a little more, left their devices at home and had more conversations, engaged in more community activities, and even just had more people over for dinner or to weekend BBQs and pool parties, they might find they are able to develop masses of new relationships with local buyers, and create bonds so strong no internet company is going to break, regardless of how big it is.

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Wholesaling Houses After Fannie & Freddie

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on Thursday, 13 March 2014
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What’s the best strategy for wholesaling houses after Fannie and Freddie shut their doors?

The liquidation of Fannie Mae and Freddie Mac may not have been noticed or seemed like a big deal for many real estate wholesalers so far, but it could be.

It could make a sizable difference in availability of deals in the short term and who houses can be flipped to in the medium to long term.

Last week’s news of a new bill to officially wind down Fannie Mae and Freddie Mac certainly had a massive impact on the share value of the two mortgage giants. After instantly falling in price by as much as 44% on the news, shares of the giants continued to nose dive with Fannie’s hitting a low of around $3 by March 13th. Who knows; by the time you read these they may already be out for the count.

Many are complaining that this is happening as the mortgage giants are raking in billions in profit. However, the real issue facing property wholesalers is the evaporation of mortgage credit for home buyers.

Between new regulations and the absence of low down payment home loans for regular home buyers and first time home buyers a significant portion of end buyers could be taken out of the game for a while.

The market will certainly be fine and alternative loan programs will be born, but in the meantime flipping houses to retail buyers could be far more difficult, at least unless seller financing is offered.

There may be a big surge in foreclosures and availability of distressed assets as Fannie and Freddie speed up liquidation. But who will these bargains be flipped to?

Fortunately giant equity and hedge funds like Blackstone and Cerberus and their subsidiaries are rolling out more loan products aimed at helping small and medium sized buy and hold real estate investors to tap equity and even acquire and rehab rental homes in bulk and piece by piece.

It is these end buyers that will certainly be most valuable to wholesalers looking for fast turn arounds and lots of them. Using flash funding from Best Transaction Funding wholesalers can ramp up volume quickly and scale their businesses. The key is making contact with those tapping this bulk funding and adding them to lists for instant flips.

What are you doing to build your list?
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Sustainable Real Estate Investment: 7 Ways To Go Greener With Your Wholesaling Business

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on Thursday, 05 December 2013
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Sustainability or ‘going green’ is no longer just a fringe movement or small niche. It’s quickly becoming expected, and consumers and companies will soon find their survival and ability to thrive greatly depends on embracing this.

Going green may not be on the top of the to-do list for many investors or wholesaling company CEOs who are busier than ever. Fortunately, being a little more socially conscious and eco-friendly doesn’t require going out of your way to find a tree to hug, protesting or even sacrificing good business practices.

Here are 7 ways to make your real estate wholesaling business greener:

1. Get a Greener Office

Whether you have thousands of square feet of office space or work from a corner in your home you can have a positive impact. Everything from the paper you use to pencil holders and the coffee you drink makes a difference, and so does where you get it from. Real estate wholesalers can actually wield an immense amount of good around the globe just from their office chairs.

2. Greener Daily Operations

Whether it is just mapping a more efficient route when driving farm areas to scout for deals, choosing a more energy efficient car to do it in, or selecting more sustainable methods for your wholesaling marketing such as going digital or using paper from responsibly managed forests it matters. This speaks volumes about an investor’s credibility and brand without ever having to say a word.

3. Wholesale Greener Homes

If the green niche really appeals to you perhaps it can become a focal point of the properties you flip. Perhaps specializing in energy efficient housing, neighborhoods and property types can be what separates your business from the pack. Note that 3 of the top 10 features home buyers want most according to a new NAHB survey were all energy efficient related.

4. Greener Improvements

While most pure wholesalers may do little to no improvements to a property those that do engage in cleanup, pre-habbing and fixing up can make a difference and increase appeal by choosing energy efficient appliances, sustainable landscaping and gardening and perhaps even installing solar.

5. Work with Socially Conscious Partners

From contractors to vendors to the city and marketing agencies choose socially conscious partners that are also pushing for good and are known for responsible business practices. The company your wholesaling business keeps says a world about your brand.

6. Donate

Consider donating, or supporting causes raising donations. It could be taking part in a relay race for a cancer charity, contributing to a crowdfunding campaign, gifting property to be used as a park or shelter and getting the tax break, or just raising awareness of a campaign by supporting it on your social media profiles.

7. Find Better Funding Sources

Help stop the devastation of entire rainforests for a single loan application with large banks that don’t like working with investors anyway. Best Transaction Funding minimizes the whole process, helps your wholesaling efforts to be more efficient and of course delivers fast on flash funding for quick flips.
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5 Ways To Capitalize On The Holiday Sweet Spot For Wholesalers

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on Thursday, 28 November 2013
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We are now entering the holiday sweet spot for scooping up better bargains on real estate. Savvy wholesalers will use the next few weeks to their incredible advantage to lock up great deals on properties to finish the year big and kick off the New Year with a bang!

According to Zillow the holiday period is the best time of year for buying homes and recent data backs up the data firm’s arguments. So it’s time for ambitious real estate wholesalers to load the pipe. Here’s where the advantages lay, and how to capitalize on them…

1. Fewer Competitors

If there is one thing that real estate investors and home buyers have been begging for over the last 11 months and which tops their wish list to Santa, it’s less competition. Fortunately there can be a lot less bidding wars and house hunters in the market at this time of the year; creating more opportunity for wholesalers to get in and get the spreads they want. So get out there and make the offers that work for your criteria.

2. Home Price Dip

An annual home price dip normally comes with fall each year, and can become even more pronounced during the end of year holiday season as fewer buyers kicking the tires gets sellers and their real estate agents sweating. Veteran investors and those that know their real estate cycles know that it’s time to put the blinders to media stats that are tainted by this and push through. Now is the time to get better deals on all of the properties you couldn’t over the last few months.

3. Serious Sellers

Zillow says that when it comes to listing houses for sale this time of year is only for serious property owners. That means the landscape can be less foggy with those just testing the market. It can mean better prices, better terms and faster closings for wholesalers. Another plus is real estate agents can be a lot more desperate at this time of year which can help to fuel things along and put agents on the side of investors versus the sellers.

4. Fast Loan Approvals

Some say that this is also a time when mortgages and loans get approved faster due to less volume in the pipeline. This isn’t necessarily true at big banks where files are constantly handed off between staff headed on vacation during the last couple weeks of the year, but wholesalers can access flash funding for flips in just days with Best Transactional Funding.

5. Networking

While many industry professionals find this a very frustrating time of year due to so many parties and cocktail happy hours and dinners taking people out of the office, those that will win are those that get comfortable with it and use these networking opportunities for warm prospecting and closing more deals.
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Pre-Fab Homes A Holiday Hotspot For Wholesalers?

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on Friday, 15 November 2013
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Are pre-fab homes the newest sweet spot for real estate wholesalers this holiday season?

Prefabricated properties could be one of the hottest trends and biggest profit centers for real estate investors this season. Here’s why…

Pre-fab homes, also known as modular or manufactured homes are trending again, yet are often ignored by many investors due to being misunderstood and the confusing terminology.

Mobile homes are often an ugly four letter word in the real estate and mortgage business and few want to go anywhere near them. The have many issues and lenders commonly won’t even answer inquiries about loaning on them. They are a big risk as they are so easily removed or wiped out by bad weather, and the majority of those in existence are outdated.

However, mobile homes are not the same thing as manufactured housing. Pre-fab means the majority of the construction is done in pieces off site, and then it is all put together like a Lego set on the desired site. This removes tons of construction constraints and objections by permitting authorities. More significantly it means larger profit spreads.

This niche has also been one of Warren Buffett’s favorite and longest running businesses, which is one of few which continued to perform through the crisis.

Lately, this niche has been taken to a whole new level with higher end modular apartment buildings going up in New York and even urban Downtown Seattle. Perhaps even more innovative is a new breed of 100% sustainable hybrid home from Mesocore which has residential uses here in the uses and can double as shelters, medical centers and schools in developing nations or disaster zones like Tacloban in the Philippines.

Conventional lenders like Wells Fargo are catching on to this trend and property type and are providing financing to builders, and no doubt end buyers as well. In many cases these properties could still use a better marketer who knows how to position them and highlight the advantages to end investors and buyers.

This is where property wholesalers can really cash in, especially right now, thanks to the holiday gift rush, year-end bonus season and surge to invest capital to minimize 2013 tax liabilities.

Contact Best Transaction Funding today to ask about flash funding for wholesaling these real estate deals…
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3 Real Estate Trends for Wholesalers to Watch

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on Saturday, 19 October 2013
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The U.S. real estate market continues to be influenced by a variety of emerging factors simultaneously. This is creating incredible investment opportunities for innovative and fast moving wholesalers, while those failing to adapt will become trapped in reactionary cycles that will limit their success.

So what’s going on now, and how can real estate wholesalers cash in?

1. Revival of Industrial Real Estate

Several new reports highlight the growing attraction to industrial real estate and how big capital will be drawn in as the sector grows. A number of factors are changing this landscape from the widening of the Panama Canal to mobile and e-commerce growth resulting in giants like Amazon taking on millions of square feet of new space across the country. Making the jump into directly investing in industrial property may be a huge gamble for more investors, but by staying tuned into new development wholesalers can bank big on flipping residential and other types of local property in surrounding areas.

2. The End of Foreclosure Relief

Real estate professionals privy to detailed bank data know that there a huge wave of new loans falling into default. However, this pool of distressed homeowners that owe some $200 billion plus in non-performing loans are facing the expiration of short sale benefits from the Mortgage Forgiveness Act and the nation’s largest banks wrapping up their financial commitments under the giant settlement. This means a massive number of highly motivated sellers, with nowhere to turn but investors flush with cash, or at least with access to flash funding from BestTransactionFunding.com.

3. High Numbers of Construction REOs

While most investors have been busy chasing multifamily and single family homes, the biggest pool of REOs on banks books in many areas is actually made up of construction loans. While these properties can have permit issues, this also means less competition. And for those with the right buyers list – even bigger profit margins.
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Wholesaling Homes: How to Stop a Seller Backing Out of Your Contract

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on Wednesday, 03 April 2013
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As a real estate wholesaler should you be worried about home sellers backing out of contracts? Can they just bail on a whim, why would they and what can you do to prevent it to avoid losing profits?

While a written and signed real estate sales and purchase contract that is secured by a deposit is meant to be legally binding on both parties sellers will try to wiggle their way out more often than you might think. For wholesalers this can put major kinks in cash flow, be costly when due diligence and marketing have been funded and put a dent in your reputation when your end buyers get messed around too.

So why do sellers pull these stunts, especially in this market?

Real estate wholesalers have to understand that flipping houses isn’t like pushing used cars. There is a lot more involved, and a lot more emotion comes into play too.

Sellers may want to get out of a contract for genuine reasons such as new job prospects falling through or family issues and so on. In these cases investors might want to give them a pass or at least some slack.

Other times it is greed that is the motivator. It can come from uneducated family and friends whispering in their ears that they should have asked for more. They might begin to regret agreeing to a sale too quickly if more offers come in later on. Or they might realize just how much you stand to make on flipping their house and want a slice.

So how can wholesalers minimize these issues?

Start by making sure they are really in the deal and all decision makers are on board from the get go.

Get better at your own due diligence and look out for sums that could dramatically reduce the seller’s net proceeds from the sale they may have overlooked. This can include mortgage late fees and attorney’s costs, code enforcement, contractor or HOA liens, pre-payment penalties on loans, federal tax liens, second mortgages and lines of credit and more.

Sticking to legitimate, wet funded, separate double closings is also smart versus flipping deal at the table or asking for large assignment fees which could cause real estate closings to erupt at the last second.

However, perhaps the single best defense is just to close quickly. Using transactional funding aka ‘flash funding’ you can close in just a couple of days and collect your profits before sellers even have time to think about trying to back out.

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4 Reasons to Ditch Rehabbing & Rely on Double Closings

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on Friday, 22 February 2013
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Rehabbing has been made to look really cool and fun by reality TV but there are some very good reasons why real estate investors should stick to wholesaling via double closings with transactional funding versus attempting to fix up homes and resell them.

There are many real estate investing gurus and programs out there promoting fixing up and flipping homes, yet far too many individuals are jumping in poorly equipped to make great buys or deal with the nuances of rehabbing properly, at least for maximum profits.

However, even for the pro DIY weekend warrior there are some powerful arguments to ditch this strategy in the current market and stick to instant flips with true wholesaling…

1. The High Cost of Rehabbing

Building material costs are already sky high and will only continue to go up as the economy improves and inflation balloons. A new National Association of Home Builders survey puts this as the top concern of U.S. builders as of last month, and if they are worried with the discounts they can get, everyone else should have an eye on it too. On top of this many are seriously underestimating the coming rapid rise of labor costs and competition for the best talent that will make this a difficult strategy to scale in coming months.

2. The ROI is Miserable

Far too many flippers are either over-improving or under-improving homes and burning precious working capital while actually reducing their true ROI. If you gut the house and redo the interior but neglect to replace the worn roof that prevents any buyer from obtaining insurance on it, it’s all been a waste. The same goes for dramatic makeovers that don’t add real appraised value. When you take time, labor and effort into consideration the ROI is often a lot lower that flipping these homes as is, especially if they can be leveraged with 100% LTV flash funding.

3. Not Necessary

With the presence of discounts, distressed properties in many forms and a variety of motivated sellers combined with rising home values, there is plenty of spread to cash in on without digging in and getting your hands dirty. So why bother?

4. Double Closings Reduce Risk

Not only does rehabbing come with a good share of pitfalls itself, any period of time a property is held means risk and a variety of threats. Using transactional funding for double closings dramatically reduces any risk and ensures greater overall profitability.
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Recent Rise in REO Prices an Artificial Real Estate Rebound?

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on Friday, 20 July 2012
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Real estate investors have recently been crying out for help as REO prices rocket and the lenders holding them make increasingly ridiculous demands but is it all an artificial rebound?

Real Market Improvements versus the Hype

There have certainly been many real improvements in many real estate markets across the U.S. over the last year, especially in hot spots Miami, Silicon Valley and a few others. However, statistics show that on a nationwide level REO prices have been gaining steam faster than retail home sales. At the same time real estate professionals have been busy telling the media that the threat of shadow inventory has evaporated and there are just a couple of weeks or months of inventory left in some cities, leading to any even more desperate surge in demand for what little is left out there.

This has been spurring bidding wars in many hot markets with cash rich funds and investors over paying for property and smaller investors barely getting a chance to get an offer in.

However, there are two major factors here that many real estate investors aren’t really paying attention too.

The first is that real estate agents are pros at hyping up deals, it’s their job. They really shouldn’t be revealing any information on other offers at all, so by telling investors or other agents they had better come in high because they already have an offer for $X they are really breaking rules and could simply be telling tall tales. Don’t fall for the hype and certainly don’t be seduced into paying too much or waiving rights to inspections or putting too much in deposit. Stick to the principals of sound investing or you will get burned.

Secondly, while there really may be only a couple of months’ worth of REO inventory actively being marketed to the public new data shows that up to 90% of REOs are being held back by lenders. Fannie Mae has even admitted almost 50% of their homes aren’t being marketed at all. These institutions don’t want to reveal how financially unstable they really are and are hoping that by controlling supply they can jump up prices and lose less.

What it means for Real Estate Investors…

Just like foreclosure auction and tax lien sales have become unprofitable for most investors due to the competition perhaps the same is true of many REOs. That’s fine, let them go, let some other poor investor lose their money on them and perhaps you can pick them up at an even bigger discount later.

Any way you look at it the opportunities for picking up discounted properties right now are far better than during the hot boom of the early 2,000s.

Dig deeper for deals and get better at reaching distressed homeowners directly instead of just relying on REOs.

Be cautious about what you add to your own inventory but have all your ducks in a row including access to flash funding so that you can move lightning fast when great deals do hit your desk.

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How to Use Transactional Funding to Flip More Houses

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on Monday, 26 March 2012
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The last two months have seen an incredible rise in the amount of foreclosures being filed and the number of actual repossessions being followed through on. Add to this 2 million more foreclosures expected in 2012 and the real problem for most real estate investors is not a lack of discounted homes available but how to finance them.

It is no secret that mortgage financing has become incredibly tough to get these days. Besides a slew of new regulations banks are still afraid to lend and are being more cautious than ever about the loans they take on. They want zero risks. Even though there has been a recent spike in activity among subprime securities new rules make it virtually impossible for true subprime lending or exotic mortgages to make a big come back anytime soon. So where should real estate investors be turn for funding for their flips?

Sadly ‘hard money’ lenders are no longer anywhere near as easy to work with as they once were. Besides tons of equity in a property they now want to check credit, income, assets and require investors to have a proven track record before they will lend to them. Then they still want to charge ridiculously high double digit rates and points.

Fortunately a new option has emerged. Transactional funding has been created as the perfect alternative for investors flipping houses. It means no more jumping through hoops and far faster funding of deals for shorter cash cycles. What are the advantages of using transactional funding?

  • No appraisal required
  • No income verification
  • No asset verification
  • No employment needed
  • Fast closings
  • No pre-payment penalties
  • Less paper work

Think it sounds too good to be true? What’s the catch?

Thousands of savvy real estate investors are using this type of flash funding to finance their deals every week. Though of course there is one catch. That is investors must also have an end buyer lined up who is qualified for a loan or has the cash to complete the transaction.

This really isn’t that difficult at all, especially as smart investors know they should have an exit strategy planned before they buy a property anyway.

These buyers can range from those looking for a new residence or second home to buy and hold investors who will rehab and rent them out. With a little regular networking and a good Internet marketing campaign for driving buyers to your opt-in list you too should be able to build a good sized list of potential buyers a lot faster than you think.

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Mortgage Settlement Causes More Homeowners to Lose Homes

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on Wednesday, 21 March 2012
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As the effects of the multi-billion dollar mortgage settlement kick in delinquent borrowers are receiving more unpleasant visits with foreclosure notices as real estate investors re-order more checks to go bargain shopping.

Instead of being the miracle lifeline for homeowners as advertised the massive mortgage settlement appears to be resulting in even more homeowners losing their homes at an even faster rate. 21 states saw foreclosure rates rise last month, the highest number in almost a year and a half. Even more shocking Florida reported a 90% year over year increase in repossessions in February 2012, with South Florida hitting a 121% increase according to a report in the Palm Beach Post.

Clearly mortgage lenders are not just putting the pressure on they have gotten incredibly serious about taking over properties and kicking out delinquent homeowners. For many of the homeowners mislead by news headlines, believing that they could be ‘smart’ and beat the system while safely skating by for years without making a mortgage payment this is a big wake up call. Unfortunately for many it is going to be far too late to get back on track. Those who still have time need to act quickly to exercise their options and take advantage of the programs ad solutions available to them before the eviction crews show up.

On the positive side this is all great news for real estate investors. More foreclosures and repossessions mean more motivated homeowners desperate to sell and more attractive discounts on bank owned REO properties.

With most of the new surge in foreclosure actions happening in the country’s hottest markets where investors have been complaining there hasn’t been enough inventory a new wave of REOs on the market is unlikely to hurt home values. If anything it may help balance the action in these markets so they do not bubble again.

The key for real estate investors is locking down as many of these new bargain priced homes as possible. The first there with a checkbook and contract are the ones who will be walking away with the largest share of the profits.

Those who have been wisely building the largest list of potential buyers and developing a network of other investors seeking rental properties can use flash funding to quickly and easily flip these homes in as little as a few days for some pretty handsome spreads. With an additional 2.2 million foreclosures expected this year the potential is huge but it won’t last forever.

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What Every Real Estate Investor Needs On Their Xmas List

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on Tuesday, 06 December 2011
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What should every real estate investor be asking for this Christmas if they don’t have it already?

Check out the following list of things to treat yourself to or print it and stick it on the fridge for your special someone to read...

1. A Blog/ Website Makeover
It doesn’t matter how great you are at what you do, how sweet your real estate deals are or how many people you drive to your web assets if your blog and website visuals are turning people off. Perhaps a makeover or move to one of the latest premium WordPress themes is just what is needed for a successful new year.

2. iPad 2
Every self-respecting real estate investor ought to have their own handy tablet as we cross over into 2012. It will help you better understand mobile marketing to your prospects, make it easy to stay wired in on the go and makes for far more professional pitches.

3. A Toll Free Vanity Number
Boost your brand, enhance your marketing results and be prepared to handle bus loads of new prospects while retaining your freedom with a great vanity number.

4. A Great Writer
Content marketing is only going to be more critical for successful real estate investing and flipping houses next year. Even if you are a master wordsmith yourself you are probably far better off hiring a great writer and focusing on bigger items.

5. A Coach Or Mentor
It doesn’t matter how good you are or how much you know, the most successful entrepreneurs and real estate investors in the world all have their own coaches or mentors to help the realize their maximum potential. So get yours.

6. Just A Few More Flips
Of course, just a couple more sweet real estate deals to flip quickly with the help of flash funding before the New Year arrives would be a nice bonus too.
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Hurricane Preparedness For Your Real Estate Investing Business

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on Tuesday, 30 August 2011
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Hopefully you haven’t been to badly affected by hurricane Irene, though with 3 more months of this year’s Atlantic hurricane season to go and 8 more hurricanes forecast you must make sure that your real estate investing business is prepared.

There are many resources online for tracking storms, finding tips for protecting your properties and advice on battling with your insurance company to get what you are owed. However, what is equally if not more important is business continuity and having your real estate investing business prepared. There may not be much you can do to prevent property damage if a category 4 hurricane sweeps through town, but you can survive losing a property or two a lot easier than being out of business for several week or months.

If you are not prepared and set up to stay wired and connected when a storm rolls in you are asking for trouble. It is usually not the impact of the hurricane itself that kills businesses. It is not having internal or external communication and access to crucial data. This means no deals are being done, all of the marketing you have out there is wasted, staff will leave and your competition will move in. By the time you catch up it could easily be 3,6 or even 12 months down the road. Can your business and your bank account take it?

So what should you be doing to prepare your real estate business? By utilizing Internet phone services which can be forwarded anywhere, using cloud computing technology for accessing databases, storing information and collaborating and having remote staff on call you can keep on operating without missing a beat.

Though this is also a time to line up back up financing sources so that you can still close those deals you were working on and take advantage of hot opportunities with flash funding and transactional lending.
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Where To Find Your Deposit Money

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on Tuesday, 26 July 2011
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Despite the availability of 100% financing for purchasing and flipping investment properties with transactional funding some in search of true no money down deals still struggle to come up with earnest money deposits to lock down the most attractive bargains whether they are foreclosures, HUD homes, short sales or from other distressed sellers.

Transactional funding does offer 100% financing to cover both the acquisition price plus closing costs, but if you have to come up with a deposit to get a signed contract and you are running short on cash what are your options?

Obviously reaching out to friends and family isn’t ideal. You can try other investors and offer them a piece of the pie but that can really dig into your profits and mean giving up some control. Though don’t give up yet.

If you still have a regular job too then you can always try getting a payday advance loan. Normally they do not require any credit checks and can be funded in hours. You can also get a cash advance from one of your credit cards and pay it off within the grace period to avoid finance charges. If you don’t have a credit card or good credit and you do have savings but just don’t want to use them, then consider a secured credit card or secured line of credit from your bank. This will also help rebuild your credit rating.

If your credit isn’t bad then what about a signature personal loan from a local bank? Of course it is much better to keep your personal and investment credit separate and you will want to register a business to work under if you haven’t already. This opens the door to obtaining a business line-of-credit or even getting an AMEX card.

If none of the above are options, don’t panic yet. Transactional funding is often referred to as ‘flash funding’ for a reason - you can close in just days. There is a good chance that if you can close fast enough you won’t even need to make a deposit. If you absolutely must then ask your transactional lender about a Proof-Of-Funds (POF) or Verification of Deposit (VOD) letter which may be sufficient to help you get the deal accepted.
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6 Advantages Of Transactional Funding

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on Tuesday, 19 July 2011
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1. No Qualifying
Transactional funding requires no qualifying like you have experienced when applying for a conventional or even hard money mortgage loan. There is no credit check, so it doesn’t matter if you have had a few bumps and bruises in the last few years or you previously went through a bankruptcy or foreclosure. You won’t have to verify your income, how much money you have in the bank or even if you have a job. You don’t even need an appraisal. All you do need is a qualified end buyer who you will flip the property to.

2. Quick Closings
You can get your transactional funding approved and to the closing table in just a few days, which is why it is often referred to as ‘flash funding’. It is great to have as a back up even if you have plenty of cash just in case something comes up so that you won’t miss your closing. Plus many property wholesalers today will only give you two weeks to close if you want to get the deal. So if you want the best bargains and the biggest profits you really have no option but to pay cash or use transactional funding.

3. Act As A Cash Buyer
The speed that transactional funding provides and the fact that there are no underwriting hoops to jump through means that you can really act as a cash buyer and demand even bigger discounts when making offers on properties. This will give you a decisive edge over your competition and allows for either making a larger spread on each deal or being able to flip houses with a lower retail price tag so they move faster.

4. 100% Financing
Transactional funding provides 100% financing of your purchase price plus closing costs enabling true no money down real estate deals.

5. Lower Risk
Having access to a great transactional lender means being able to flip homes quickly and easily, getting in and out without the risks associated with holding or speculating on appreciation.

6. It’s More Affordable
If you have used conventional mortgage financing or hard money lenders to fund your real estate deals in the past you know that hefty junk fees and paying lots of points can seriously dig into your profits and make or break a transaction. You will find transactional funding a lot cheaper, leaving more money on the table and in your bank account.
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7 Tips For Successful Real Estate Investing

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on Tuesday, 12 July 2011
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1. Have A System
Don’t just have a plan, have a system that with enable you to operate efficiently and rapidly grow and scale your real estate investing activities. This way one day you can even begin franchising or sell your business for big bucks.

2. Find A Great Funding Source
Even if you are getting into real estate investing cash rich at some point you are going to want to use leverage to do even more. So find a few great funding sources for your acquisitions including conventional mortgage lenders and banks as well as private lenders and transactional funding sources.

3. Build Relationships & Partnerships
Loyalty goes a long way in real estate investing. Plus the more business you give one company whether it is a transactional lender or Realtor the better deals and more flexibility you will find. You can also bet that having a good relationship with your vendors can also help you pull off even faster closings and flash funding when you really need to get a deal done ASAP.

4. Inspections
You have heard it before, but it really can’t be said enough - always get inspections done no matter how many deals you have done before and how fantastic a condition the property appears to be in. This also applies to walk-throughs. You never know what can happen between the time you sign the contract and you hand over the cash.

5. Don’t Alienate Real Estate Agents
Some real estate investment courses have portrayed real estate agents as the enemy and too costly to deal with. However, in reality they can often find you great deals, save you plenty of time and even help you find the best flash funding sources when you need quick financing to close on your flips.

6. Always Be Networking
Sometimes it is really who you know, not what you know that brings you great deals and helps you get them closed. Your success in real estate investing will directly relate to how many new contacts you can make each day.

7. Keep Building Your Marketing Skills & Knowledge
Today the deals go to those who are great at marketing themselves. So keep on top of the latest trends, embrace social media and mobile marketing and get out there to win the most buyers and sellers.
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