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Fed Not Cutting Interest Rates In 2024 Afterall

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on Friday, 01 March 2024
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After a brief glimmer of hope in the headlines, it turns out the Fed is deciding not to cut interest rates this year. What does it mean for real estate investors?


Hopes Of A 2024 Fed Interest Rate Cut Flop

While the hype around potential rate cuts certainly likely helped boost stock prices and spending for a few weeks, it seems that relief isn’t coming after all.


According to Bloomberg, the Fed now does not foresee cutting rates at all this year.


How is this likely to impact the market?


More Inflation

Higher costs of borrowing result in higher consumer prices. Even though it is claimed that high rates are used to battle inflation, we continue to see the opposite at checkouts online and at the store.


On the upside for real estate investors, this could also help to continue to support a rise in retail home prices and rents in some areas.


More Distress

Recent rate hikes have also coincided with increasing financial distress.


We’ve now got record volumes of nonperforming consumer debt in several categories, as well as ongoing defaults on mortgages, to the tune of billions of dollars.


With the news the NYCB is replacing its CEO and allocating more cash to cover loan defaults, this finally appears to be hitting the banks as well.


Motivated sellers of all sizes and types out there. From regular homeowners to big corporations, to financial institutions.


It’s a great time to be wholesaling real estate. While there are now countless ads and websites offering fast cash offers for homes, you can stand out by taking the time to understand the seller’s unique situation and triggers. Find out what’s most important to them, and not. That may or may not be price, closing date, and term. Then formulate the most attractive offers.


Funding Your Deals

A new report shows that it has not been this hard to get a car loan since the midst of covid. With banks holding money to cover loan losses, expect mortgages to also become harder to get.


Fortunately, whether you are just looking for the funds to get started in real estate, want to lower your risk, or expand faster with more capital, transactional funding is still available, and at great rates.

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5 Must-Do Items Before The New Year

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on Wednesday, 06 December 2023
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These are the five most important to-do items that should be on every real estate professional and investor’s list before the new year arrives…


No matter how busy you think you are, or the ‘urgent’ things that try to distract you and steal your time, the below will make or break how you end this year, and how the entire next year will go for you.


Review The Past Year

Take a day to review the past year. What worked well and didn’t? Why?


Evaluate any gap in your goals versus achievements. Did you surpass your goals, or fall short? What caused that?


Ask what has changed in the real estate market and economy, and your business, and life over the past year, as well as your personal development?


Then take the next day to celebrate all the progress. Even if you didn’t hit all your goals.


Set New Goals For The New Year

Make them specific, BIG, and achievable.


Anchor these to your underlying why. Make them visible on a daily basis. Not just for yourself, but for your entire team.


Begin setting up the framework to be able to achieve these goals over the next 12 months. If you don’t have a template for this yet, even just start a spreadsheet with the categories of items that you need to accomplish them. Including the team and roles you need to till, the connections you need to make, the infrastructure that needs to be put in place, and the budget and funds required.


Evaluate The Outlook For The New Year

Consider what is likely to change or stay the same over the next year?


Such as new regulations, demand and supply, the cost of doing business, and more.


Ask what are the unknowns or wild cards that could be played? How can you be prepared to weather it and capitalize on these changes, so that your business is unshakeable when things happen?


Take Time Out To Reset

Recognize that this is some of the most important and profitable time you will invest in yourself and your business all year.


Whether it is a weekend or a week, the ROI on this time outside of your business will return many times that of the hours you are busy in your business the rest of the year. It will boost every other minute you spend doing things over the next 12 months.


Getaway somewhere new. Ideally you can unplug from everything for at least 48 hours.


Decompress, get inspired, gain new insights, recharge, reenergize, and regain your focus, and perspective on the big picture.


This is the most important thing we all MUST do before the new year.


Set The Table

Then take the remainder of the year to have conversations about everything you’ve contemplated, learned, and set to do for the next year.


This season is ideal for sharing many meals with important people in your life, and new people. This sets the table for the entire next year.


Spend quality time with those you love and care about, time bonding with your team, and connecting with new prospects, and potential partners. Eat together, get feedback, solicit ideas to streamline your achievements, and set up plans to take next steps with them in the new year.

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5 Ways To Find House Deals Now

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on Tuesday, 10 October 2023
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According to the narrative the mainstream media is selling, house prices are shooting up thanks to a lack of property for sale.


At the same time, common sense, and the data suggests that there is a tremendous amount of financial distress out there.


So, how can you find the houses and do more wholesale real estate deals?


Sure, there are many tools being advertised online for identifying properties and leads virtually. Of course, this may not work as well as it is marketed, and may now be saturated with competition.


Try these ideas instead…


Realtor Yard Signs

It may sound counterintuitive. However, many properties do not sell simply because agents fail to answer their phones or respond to leads.


Try calling on the for sale signs you see. If they answer, you may be able to strike a deal that way. If they don’t, then you can bet the owner is stressed and frustrated, and is looking for another way to get their property sold. Just be mindful of the rules regarding commissions being due.


Old Listings

Brand new listings get all the attention. You’ve probably got alerts to new listings yourself. That’s often not where the real deals are.


When was the last time you scraped older listings on Craigslist for example? Ads that may not be getting any competition. By now the owners may be even far more motivated to strike a deal and offer a discount.


Private Lenders

Private lenders have been incredibly busy putting out money over the past few years. Now many of their borrowers are not paying. Even though there may be equity in properties, and lenders have more than made their money already.


Lenders may foreclose and flip you these deals. Or simply introduce you to their borrowers to work something out.


Blog About It

Social media may be super saturated with cheesy junk, and so many ads that users have become immune to them. Yet, when it comes to homeowners searching for help, they’ll still most likely end up on Google. Which is going to feed them articles, blogs, and websites around their search terms.


Try starting a blog, or reviving and scaling one you’ve already got. Publish some content focused on how to sell your home in a variety of situations, and become the trusted advisor they turn to.


Inherited Property

A grim, but true statistic is that almost 3.5M people die in the US, every year. Based on homeownership rates, more than half of them may own a home at the time they pass away. This alone is a huge pool of properties.


Heirs and loved ones left behind need help. They are often left with a big debt that they cannot carry, and a lot of work. Often they just want to turn those properties into cash as quickly as possible.


However you plan to find your house deals, check out our Fall interest rate deals from 1% for funding your next acquisitions.

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Real Estate Investing: How To Prepare Yourself To Win In The New Economy

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on Saturday, 07 October 2023
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Want to ensure your real estate business takes off and continues to flourish in the next few months and years?


It’s amazing to already see the great disparity dividing investors, entrepreneurs, and businesses. Some are going bigger than ever with ease. They are growing into new niches, with $100M pipelines and plenty of deals and capital lined up. Others are already struggling and the fear and doubt that is creeping in could prove self-fulfilling.


Whether you are just starting out in real estate, have been riding the recent bull run but haven’t experienced adversity before, or have been at it for decades, there are both regular cyclical and major macro economic shifts happening.


In order to get ahead, and keep winning and growing, you’ve got to be intentional about it.


It may take some tweaks to your model, or a whole new approach. This is an important time to refresh your perspective and anchor it in what really matters and will make you successful.


Consider these 10 ways to prepare for success in real estate, and avoid being swept away by external changes.


Take Stock Of What Really Works

What has really been working, and has directly created your success so far. Be sure to differentiate between those fundamentals, and the frills that may have come along with it.


For example; it was probably working the extra hours and going above and beyond to take care of those customers, not the Ferrari that got you there.


Remember the progress you’ve made and what you’ve achieved so far.


Take Time Away To Think

There are so many distractions around us. Which is often what leads to making serious mistakes, and continuing to slide into failure.


Take a long weekend away. Detach from the everyday tunnel vision. Gain time to truly think and focus.


Unplug and evaluate. Then take time to see new things, and what’s really happening outside of your own little bubble. See how so many are actually struggling right now, as well as how others are doing so well that they are oblivious to this. See new ways of doing things.


Relist Your Priorities

What is really most important to you?


Above the work, is it your family, a partner, or your own health?


In real estate, which metrics and KPIs are truly most important? Hint; they are probably customer happiness, NPS score, and net profit. Everything else may be a dangerous distraction.


Learn What The Successful Are Doing

How are those that have been through these changes before handling it? Not just what they are saying or recommending, but what are they doing in their own finances and business? What have they done to survive and thrive through changes and challenges in the past?


Is it shifting investment strategy, increasing marketing efforts, or being more prudent in their offers?


Read books by real human authors, with real experience. Join mastermind groups or start your own. Hire the right team for this phase of your business, and be sure you hold onto them.


Make Sure Your Team Gets It

Most founders should be horrified by the gap between their initial vision and efforts, and how the business ends up getting run on the front lines.


Ensure your team knows the big vision, the why behind changes, their most important metrics, and the values that are there as guide rails to get there.


Discern What Will Stay The Same Vs. What Will Change

You’re probably far too behind the trend to slap the ‘AI’ label on your business and hope it helps. Now we even have AI created Coca-Cola. It’s become a cheesy and cringe worthy meme, more than a signal of value.


It can help to sail with tailwinds, yet it is being strong in the fundamentals that make a good and sustainable business. Then you build the marketing on top of that.


Refresh Your Morning Routine

It may be time to shake up your morning routine. Add new important tasks. Ensure it anchors you in a positive and successful mindset to overcome the day ahead.


Be sure to check out our Fall Funding Deals, with interest rates as low as 1%.

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Digital Nomad Visas May Change Where People Live And Work

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on Tuesday, 26 September 2023
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More and more countries are developing their own Digital Nomad Visas for the new remote workforce. How might this change alter where people live and work, the dynamics of rentals and real estate? Where might you want to travel and work from as a real estate wholesaler?


Digital Nomad Visas

Now that the workforce has changed to being remote first, more and more people are wanting to flex their new found freedom to travel and work from new places.


With other recent economic changes, many individuals are also being forced to find friendlier and more affordable places to live and work too.


According to one list, at least 58 countries now have some form of Digital Nomad Visa. A type of immigration visa which allows you to go live and work there remotely. Often for between 6 months and 3 years.


The entry requirements and fees for these visas are far lower than for traditional visas and residency programs. You normally just have to prove you make a minimum amount of income each month, or have enough money in the bank to sustain you while you are there. This can range from a few hundred dollars a month to several thousand Euros.


Countries are seeing this as a way to boost their revenues, popularity, and to attract great talent.


Why You Should Try It

While there may be some perks of wholesaling properties in your own backyard, travel is a common thread linked to success in entrepreneurship. It is also completely unnecessary to restrict yourself to only operating locally anymore. If not highly risky.


Travel can give you new perspectives on things, and great new ideas. It can broaden your network and contact database. Then you might just find somewhere you love more for the weather, culture, and which allows you a better quality of life, at far lower costs. Taxes are complicated, but there may also be benefits there too.


Where To Go

In reality, most countries will allow you in on a tourist visa, or just as a tourist without a visa for 3 to 6 months anyway. So, you don’t have to restrict yourself to countries offering Digital Nomad Visas. The US does not currently offer one.


You may want to explore:


Croatia

The Bahamas

India

The UAE

Nicaragua

Cyprus

Greece

Spain

Portugal


The Impact On Real Estate

The current direction of the economy, the AI revolution, and the availability of Digital Nomad Visas all seem to be working together for remote work to have an even bigger impact on real estate.


Even in the US, where we may not see such a visa, we can expect this trend line to impact how cities market themselves and how much of this business they will win. For landlords, it may mean more short to mid term tenants, and professional tenants. Whose needs are also different. They need furnished places with good wifi. They may pay a range of rates from dirt cheap to higher Airbnb prices. Though they are going to pay based on what they can afford in monthly rent, not vacation prices.


Consider how this may influence your real estate wholesaling business, your pricing, and where the hot places to flip houses will be next.


Then take advantage of our 1% Fall Mega Sale, with interest rates on your funding as low as just one percent. Check out the details here.

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Up To 90 Percent Of Home Buyers Choosing Based On This One Factor

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on Tuesday, 05 September 2023
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New data from Zillow and Bloomberg shows that as many as 90% of home buyers are now factoring in climate and natural disaster risk to their choice of where they are buying a home.


How might this impact the real estate market? How will it affect property investors? How can you stay ahead of it, and use it to your advantage?


Climate And Disaster Risk

The data shows that nationally 83% of buyers are weighing this factor in their home buying choices. Including hurricanes, flooding, wildfires, droughts, and extreme temperatures.


Many are just tired of dealing with the same issues every year, and seeing their lives interrupted, or homes damaged again and again.


Others are just thinking forward as they try to make the best home investment possible.


How Will It Impact The Market?

The most obvious answer is that this shift in awareness and decision making will alter where the most volume of demand is for home purchases and investment properties.


However, a Zillow survey interestingly shows at least one quarter of respondents reporting they are actually moving to a riskier, rather than safer area.


This may be primarily due to other drivers in the current market. Such as rising crime in some cities, and lack of affordability in Northeast states.


We may see old high end housing markets continue to become more dominated by second residences, with buyers choosing primary residences in safer and more affordable areas.


It is not just about geographic risk either. A lot of it is also about specific properties. For example, choosing newer inventory that has been built to higher standards, and at higher elevations. Which in some areas is causing issues and potential devaluation for existing older homes that are now flooding due to run off from higher neighbors.


Staying Ahead Of The Curve

As a real estate investor it is vital to evolve with market shifts like this.


It may influence where you target making real estate offers in the next few months and years. As well as the types of properties you are targeting, and how you formulate and price your house offers.


No matter where you are buying and selling homes, use this as a big highlight in your marketing. Point out security features, like new hurricane shutters, adherence to new building codes, and where your listings have low risk levels compared to your competition.


Check out our 1% interest rate MEGA SALE now, and submit your Funding Request to get your next deal done.

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Finding Pre And Post Disaster Real Estate Deals

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on Monday, 04 September 2023
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Hurricane Idalia is yet another fresh reminder of how every area has some disaster risk.


As a real estate investor it is all about understanding how to mitigate, balance, and profit from that risk, in the right way.


Every disaster threat, from seasonal hurricanes, to wildfires, and snow storms bring their threats and opportunities. Both before and after they hit.


Pre And Post Disaster Real Estate Offers

Many sellers will be willing to offer big discounts, just to get out and put some cash in their pockets before a coming disaster, or disaster season.


If you have the stomach for it, and good strategy and tactics that mitigate the risk, you can acquire properties at deep discounts that end up not being impacted at all.


Post disaster, many owners will just be too scared to go back, or tired of living through these annual storms, even if their properties were not affected at all.


Of course, you should always have properties inspected after a disaster like this, or price your offers to include the worst case scenario. It is not uncommon for unscrupulous investors to try and cover up flood damage and mold.


Get your Proof Of Funds from Best Transaction Funding now, so that you can get out there and make offers with confidence.


Making Offers With Care

Just because sellers are highly motivated or desperate does not give you a pass to abuse them. Make offers with care and etiquette that help them. While allowing yourself to be fairly compensated for your part.


Just as it would be in pretty bad taste to be calling your tenants demanding rent right in the middle of a hurricane. Or making your team be out on the job in unsafe conditions, without giving them time to protect their homes and families first.


After the storm, you need to consider how you will kindly deal with desperate renters applying or buyers who need a roof over their heads.


Often during the post disaster period property prices can actually skyrocket due to reduced inventory, and thanks to many buyers being rich with cash from insurance payouts.


Submit your Funding Request and get your next deal financed today.


Insurance

Even if not necessary, insurance can be wise in these circumstances. Just understand all of the loopholes insurers use not to payout, and how long the lag time between damage and claims being paid can be. It is not uncommon for that to take years, and lots of negotiations.


Investment Strategy

Some areas will just keep on getting hit year after year. Some will keep rebuilding. Others will grow tired and give up. Or authorities will acquire land and temporarily block development.


Consider whether this is a good area for a buy and hold, construction heavy fix and flip, or just a fast in and out wholesale deal.


Check out our MEGA interest rate sale, with rates from just 1% this fall!

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Been Laid Off? Wholesaling Real Estate May Be The Answer

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on Thursday, 20 July 2023
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If you’ve been laid off, see it coming, or have even just had your hours and income cut back, is wholesaling real estate the answer?


Mass unemployment is snowballing faster than most realize. It’s a domino effect that isn’t just going to wipe out far more jobs, but also most retirement accounts that are not anchored in tangible assets.


If you or someone you know is in the path of this financial avalanche, wholesaling real estate may be the only thing to cling onto in order to survive it.


Mass Unemployment Is Coming

It’s already surging under the radar of official statistics and lagging data. Don’t be surprised if we exceed 20% unemployment by next year.


Consider that out of just over 330M people in the US, only just over 60% of those have been participants in the workforce.

Then look at all the big corporations and tech companies that have been laying off tens of thousands of employees. Including Goldman Sachs.


Then you have AI and automation replacing your gas station and grocery store clerks. Then soon all of your delivery drivers, warehouse staff, and uber and truck drivers.


On top of that the Bureau of Labor Statistics puts around 10% of the entire population working in customer service. About 20% of the working population. All of whom could be quickly unemployed by new technology.


Then another 18M freelancers working on jobs that could soon be replaced by robots. Even if those robots do a terrible job.


In turn, the fallout will force other businesses to fold and make layoffs.


With hiring freezes in place, don’t count on finding another job.


What Can You Do?

You can’t just live off of your savings. You can’t take a job that doesn’t keep you ahead of real inflation. Which by the way is still up by high double digits. These are just paths to a slow financial death, and a lot of stress and sleepless nights.


Entrepreneurship and investing seem to be the only viable answer. To be creative and find a way to create your own income, without relying on anyone else.


Of course, most businesses still have high startup costs, and are slow to produce any meaningful income.


Trying to sell enough products on Letgo or Amazon to pay your bills is going to take a while to build up.


Real estate obviously stands out as an answer. Though most do not have the very, very deep pockets needed, or capital of their own they can afford to bet on rental properties and fixing up and reselling homes. So, what’s left?


Wholesaling Real Estate

For most, wholesaling real estate may be the only thing that can save them.


Using transactional funding, you can have 100% of your deals financed, including closing costs. Even if you’ve taken some credit hits lately.


This is a real estate strategy that allows you to get in, out and paid, in just days. Providing anywhere from $5k, to $50k, to over $500k in profit per deal.


You probably don’t need many of those each month to replace your old income.


Now is the time to get ahead, even if you haven’t been laid off yet.

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How To Cut REI Business Expenses To Survive & Thrive

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on Thursday, 25 August 2022
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What’s the smart way to trim your real estate business expenses to survive this phase or the market, so that you can thrive and scale?


The Problem Facing Many REI Business Owners

The vast majority of real estate business owners, investors, and agents have not experienced this phase of the economy and market before.


In just a few weeks they have gone from denying that it is possible, to being on the verge of panic as they see it happening.


Many are experiencing stress and fear as property prices and deal flow changes, and they see many real estate brokerages making massive layoffs, and lenders losing their credit lines and redying for bankruptcy.


What’s ironic is that we are entering the best part of the real estate market for buying the best deals, and making the most money. Many are right on the brink of success, if they would just hold on, tweak their real estate strategies, and optimize their finances and operations.


There are going to be millions of property deals coming, and with Best Transaction Funding they can finance 100% of their acquisitions.


To Quit Or Not To Quit?

You only fail if you quit.


Many may be quite happy going back to day jobs and hourly pay working for someone else in a different industry, if they can find anyone hiring. Yet, for those who are truly entrepreneurs and business owners, giving up now will be a choice that will haunt them for the rest of their lives.


If you really don’t want to put in the effort to keep going, then consider your options before you just throw in the towel and shut it down.


You could potentially sell your entire business and at least wrap it up cleanly and walk away with some cash to get you through the next phase of the economy.


Alternatively, you could merge your business with someone else, or just sell off your assets. This may include your data, other physical assets, and portfolios of properties. There are plenty of other investors who want to buy them.


Where To Cut Costs

This is a good time to trim frivolous expenses that are eating up your cash flow and profit margins.


Subscriptions and software can add up fast, yet are often underutilized. Review your accounts for all those you are still paying for, and cancel all but the essential.


The biggest area to cut for those still working old school is their office and business premises. Not only is having an office unnecessary, it is putting you at an extreme disadvantage against the competition. Both financially and in terms of productivity.


You can also cut labor on unnecessary activities. Like meetings, or low yielding busy work that doesn’t increase profits and revenues.


Where NOT To Cut Costs

Whatever you do, do NOT stop marketing.


If you stop marketing, you stop bringing in deals and dollars. Your business will die. Just more slowly and painfully than if you just shut it down now.


Also be wary of laying off your best talent. You cannot replace great talent with lower quality talent, and expect for things to go well. It is counter productive. If you lose your best talent to the competition, they will use it against you. It is hard to find, harder to keep, and easy to lose.


If you can’t afford your current wages, then consider temporarily reducing and minimizing their hours, until you get your deal flow going again.

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Why Your Properties Aren’t Selling

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on Thursday, 12 May 2022
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In spite of being in a super hot market, some real estate investors are still finding they are stuck with inventory sitting on the shelf for months, or even years.


With so many bidding wars, and competition between buyers, it seems bizarre for properties to fail to sell immediately.


This is incredibly important. Even more so than many investors appreciate. Properties that are languishing in your inventory are costing you money. They present risk every day. They raise questions about the strength of the market in your buyers’ minds, and can detract from your other inventory. At a minimum, they are watering down your overall returns, even if you paid cash for them.


It doesn’t take much dead weight to sink you. Or to eat up all the profits from your other properties. It puts you at risk of breaking the golden rule to not lose money.


Why Your Properties Aren’t Selling


Pricing:

In this market, when most properties seem to sell in a day, the most obvious reason something isn’t selling is that it is wildly overpriced. It’s not even in the ballpark.


It may make a lot more sense to cut the price, get your capital back, and get on to a deal that you can make more money on.


Trust:

Even if you are offering a stunning deal, if buyers don’t trust you, they are not going to buy. Period.


It’s Too Hard To Communicate With You:

This isn’t about what works for you, but being available in the medium they prefer. Many simply do not want to talk on the phone today, won’t take calls, and never check voicemail.


If you don’t respond to emails and text messages, then you are probably going to miss out on the bulk of buyers out there. The opposite is true as well.


They Aren’t Sure What It’s Worth:

You may not be conveying the value of what you are offering well. Perhaps there is too much uncertainty over comps, property condition, and repair costs.


How To Move Them Faster


Owner Finance:

In addition to the above tips, you may consider offering financing. Think low down payment, palatable monthly payments, and perhaps even three months with no payments to get them started.


Work On Your Website:

It doesn’t have to be big, complex, or fancy, but it should be up to date, and boost your credibility, and likability.

 

Find The Buyers First:

In future, don’t speculate by buying and hoping you can resell. Instead, find the buyers, fill their orders, and use transactional funding to turn them around immediately.

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Deal Spotlight: $2M Wholesale Deal

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on Wednesday, 09 March 2022
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We are glad to celebrate one of our recent clients who just completed a $2M wholesale flip with our transactional funding!

Empowering real estate investors like you to succeed and thrive in all market phases is what gets us excited, and out of bed in the morning.

As a part of our new Deal Spotlight Series we are going to be highlighting those who are out there doing great deals.

This month’s is a special deal that we hope will inspire you to go even bigger with your own investing.

$2M Wholesale Deal

We recently helped this investor acquire an over $1.9M property, and instantly exit it for $2.7M. Deal Specs:

Funding date: 2/17

Purchase price: $1,939,524.63

Loan amount from BTF: $1,939,524.63

Property: Mid-rise office building in Arkansas

Resale price: $2.7M

That’s a nice spread for any investor!

Highlights:

LTV: 100% funding from Best Transaction Funding

Closing time: Funded in just 3 days from receiving final HUD

Rate: 2% case by case

This was a great back to back closing. Special thanks to Title for getting it done.

A to B Closing Statement:

B to C Closing Statement:

Your Lender Of Choice For Large Wholesale Deals

Best Transaction Funding is your lender of choice for funding your larger loan amounts and wholesale deals.

We love helping you close big deals.

If you are looking for transaction funding especially for $500k plus transactions you’ll find we have the best rates and terms.

We’ve remained a true transaction funding lender. Offering 100% financing for wholesale real estate deals, and can fund closing costs. All with no credit check or appraisal.

We close deals, and we close them fast.

We are especially proud to be your partner in this market as you build up your volume, and expand into other areas. BTF funds deals nationwide.

Submit your deal and funding request, get your POF, and make those offers today!

 

Plus, if you are already funding deals with us, let us know if you’d like to be included in this new Deal Spotlight series by dropping us an email.

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Real Estate Investing: How Much Should I Be Offering Sellers Now?

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on Thursday, 24 February 2022
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With the fast changing real estate market many investors are wondering if they need to be changing up their offer strategies, and how much they are offering sellers. So, what should your offer formula be now?


The Changing Real Estate Market

The economy, finances and real estate market keep on changing at a face pace. There have been plenty of twists and turns, with more to come this year.


The housing market has continued to beat expectations. Multifamily is very strong too.


Tens of billions of dollars are chasing deals in this space right now. Which is also leading many investors to question their offer strategies. Especially as they find it more challenging to secure deals with often overly optimistic sellers.


The big question is how much to offer to still ink profitable deals, and keep up deal flow? You’ll starve without doing deals, but don’t want to be losing money by overpaying either.


Be Wary Of Rules Of Thumb

There are many books, articles, and speakers out there plugging their rules of thumb for making offers on properties to flip. Much of this is outdated and out of touch.


You cannot just stick to one rule of thumb and offer formula. Market dynamics are changing all the time. Some investors are used to making offers in the 60-70% range. Others have driven hard bargains at 40 cents on the dollar during crisis times. In other phases of the market a lot of money has been made offering 90% of the retail value for homes.


In the past some appraisers and lenders have gone up to 125% of the value knowing the market is growing so fast.


Be Wary About Overpaying

Overpaying will catch up to you eventually. Even these big funds blatantly paying 50% over value for properties will eventually find they pay for it.


At the same time, you may need to be more aggressive, and be willing to pay more for property than you thought it was worth over the past couple of years. Remember, it is about what the market is willing to pay for it.


Still, with prices expected to rise, at least one guru has been advising his followers to make offers based on pending sales, not closed comps. That is extremely dangerous.

Pending sales often don't close. They are not used for lenders and appraisals. It can mean big trouble flipping, and being restricted to only cash buyers willing to over pay.


Stay Flexible

Be aggressive enough to land the deals. Yet, conservative enough to not lose money and get stuck with dead weight you can’t sell.


Sellers won’t hold out forever. If you hold firm, the sooner they will fold. There is a lot of distress building. Especially with inflation in gas, insurance, and medical bills. As well as declining consumer debt performance.


Ideally you already have end buyers lined up in advance. You know their numbers, and can base your offers on that. Then with transactional funding your risk is incredibly low, deals are presold, and you are in and out, and paid.

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5 Mortgage Underwriting Quirks That Could Kill Your Next Deal

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on Thursday, 13 January 2022
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The US real estate market is expected to hit new records this year. Yet, choosing the wrong deals and buyers could turn your best year ever into a financial nightmare.


There is plenty of capital for real estate wholesalers to use transactional funding to flip deals fast for big profits. Though end buyers relying on financing could run into challenges in trying to close due to quirks they may not anticipate in mortgage underwriting guidelines.


Even some of the most progressive new private money lenders, and investment property lenders have a lot of rules which can be directly at odds with what investors are being told are good deals this year.


Here are five to watch out for when contracting with an end buy that needs financing.


Square Footage

Unless you’ve run into it before you may not be aware that lenders often have minimum and even maximum square footage they will lend on.


This often rules out tiny homes and small condo units. As do their minimum loan amounts.


Some even have a cap on how big a home can be, and how many bedrooms it has. They prefer average sized ‘bread and butter’ deals that are easier and faster to liquidate.


Mixed Use Properties

There may be more mixed use properties being built, as well as many opportunities to buy now abandoned office and retail space, and convert it into mixed use.


It sounds like a great plan, and they can be great properties. Unfortunately many lenders don’t want to touch them. Especially when you are trying to finance a property which includes residential too.


These properties are much harder to finance, with big down payment requirements.


Acreage

Even though hundreds of thousands, if not millions of US households are heading to the suburbs, small towns and rural areas, many lenders are less interested in funding those properties. Some specifically prefer urban infill.


You may run into lot size caps as small as one acre.


Declining Vs. Improving Markets

Lenders guidelines are typically very specific about lending in improving and appreciating housing markets with strong supply and demand balance.


While many of the deepest discounts for wholesalers may be found in distressed markets, a declining market can be a nightmare for financing, with a drawn out process, repeat appraisals and more.


While most of the country is expected to keep growing this year, don’t be surprised if we see a dip in some once prime NY, CA, and IL markets.


Forbearance & Skipping Payments In The Pandemic

Many borrowers were offered the ability to skip payments on credit cards, car loans and house payments during the pandemic lockdowns. Some banks even automatically threw their borrowers into forbearance plans without them asking.


These plans were offered on the premise that they wouldn’t negatively impact credit and credit scores. Yet, some lenders are revising their mortgage underwriting guidelines to bar applicants with missed payments or that have been in forbearance plans, and consider them a loan default. Make sure your end buyers are aware of this before inking a contract.

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4 Factors You Didn’t Know Impacted Property Value

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on Monday, 01 November 2021
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Do you know what adds value to a property, and what doesn’t?


This is one of the most critical parts of investing in real estate. Sadly, even many Realtors have no idea what truly adds value to a property. You certainly shouldn’t be basing your education on ‘reality’ TV show makeovers or Zillow either.


By now, hopefully you understand that upgrading flooring and accessorizing don’t add real value. In fact, most home ‘improvements’ lose money. Which is a large part of why real estate wholesaling is so much more attractive than rehabbing or fixing and flipping.


It can take quite a few years, and hundreds of transactions for real estate investors, Realtors and even mortgage brokers to really be able to catch many of these nuances of this business. Important valuation factors which can make or break deals.


Many issues arise in mortgage underwriting. Even if you are paying all cash or are using transactional funding, where these aren’t problems, they can be incredibly problematic when it comes to your end buyer obtaining financing.


Then there are also quirks, like some of those below which may influence how much others are willing to pay for a property, regardless of what the comps may indicate based upon the numbers alone.


City Names

Some city names and mottos are certainly more attractive than others. Who wouldn’t want to move to the ‘Sunshine State’, the ‘City of Angels’ or Paradise?

Then we have those like Slaughterville in OK, Scary in WV and Hell in MI. They may certainly have some niche appeal. They may be a hit for some on Halloween. Not so much for the rest of the year, the bulk of the buyer pool, or those seeking an Airbnb escape.

Don’t forget Toad Suck, Arkansas, Boring, Oregon or Roachtown, Illinois.


Street Names

It is often bewildering to see some street names, and to try and imagine who thought they were a good idea.


Who wouldn’t want to live on Happy St.? It is a real one. Or how about Freedom Ave?


Then you have movies and events that destroy the value of streets too. Like Freddie Kruger. The Guardian reports that homes on Elm Streets all over now sell for 70% less than competing homes.


Industrial & Commercial

Having views of industrial and commercial real estate from your residential property can also be a huge issue for many mortgage underwriters. Many will just turn applications down.


Property Taxes

Homes are much more attractive in low tax destinations. Those in high cost areas can be dramatically different from one unit to the next. Often based on the owners appealing their assessments. There can sometimes be a 50% difference in the property taxes on almost identical units. Which would you pay more for? This can directly impact value when properties are being evaluated on their profitability and cap rates too.


What quirks have you found that have surprised or frustrated you, and you want to warn others about?

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Evolving Trends In Real Estate

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on Wednesday, 29 September 2021
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Check out these evolving trends in real estate…


Understand how these changes are influencing the market, creating opportunities, and how you can invest to benefit from them.


Taxes, Taxes, Taxes

We already seem to be in a year of unprecedented tax hikes, the addition of new taxes, the stripping away of long used breaks and deductions, and proposed taxes.


One of the most notable of these new tax proposals has been the targeting of tax saving retirement accounts, including IRAs. Now, despite saying it won’t cost anything to pay for the new $3.5T spending bill, the government is proposing a new tax on unrealized gains.


That means you would pay taxes each year on the increased value of assets. While the ruling is still very cloudy, that would take away the interest or advantage into holding onto homes, retirement savings invested in long term hold real estate, stocks and even precious metals.


It may mean more cash being spent in the economy in the short term. Further supporting price growth. If you are going to pay the taxes each year anyway, then turning around house flips fast for lump sum gains just seems to make more sense.


Extreme Inflation

Hyper inflation seems unlikely to subside anytime soon. This certainly applies to construction materials and labor. Materials are costing even more due to shortages, increased delivery costs, and gas prices. Hyper inflation in gas and daily living expenses means construction workers need to get paid a lot more to justify going to work every day too.


This means the market favors real estate wholesalers far more than rehab flippers and house builders.


Soaring House Prices & Deep Discounts

If you haven’t noticed, the real estate market is in a really weird place too. In some cases house prices are up almost 100% year over year. In others oversupply means desperate owners and builders who are offering extreme discounts. Even though rents there may also be rising by 70% or more each year.


Financial Leverage

Real estate investment businesses and funds are trying to leverage even more capital now to take advantage of all of the opportunities out there, and to benefit from extremely low interest rates. Traditional mortgages may be virtually dead right now, but there is a ton of investment capital ready to be deployed.


Many real estate investors seem to be trying to create ‘pitch decks’ to raise capital like they see tech startups doing. Yet, few really understand what a modern pitch deck should look like, and how a good fundraising process is run.


With transactional funding wholesalers can skip all the hassles of borrowing and raising capital, optimize their leverage fast, and sell for cash quickly to those that have it.

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8 Things Robbing Your Wholesaling Business Of Deals Every Month

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on Wednesday, 07 July 2021
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While some have complained about fierce competition and low inventory in the market, there are still plenty of deals for wholesalers to do. Unfortunately, in many cases it all comes down to real estate wholesalers sabotaging themselves.


These are eight of the most common causes of lost deals every month.


Demanding To Talk On The Phone

Generating dozens, and even hundreds of visits to your website or property ads isn’t that difficult. Yet, it is all for nothing if you don’t enable prospects to communicate in the way that works for them and medium they trust.


There are so many scammers out there that most distressed homeowners, and probably most buyers no longer want to talk to a salesperson on the phone. They much prefer text or email.


Your Email Address

How does your name and from address show up when you are emailing buyer and seller prospects? When was the last time you checked? Does it look spammy? Or does it look like you are a real, authentic person? Get this one thing wrong and they probably won’t even open your messages. It’s even less likely they will respond.


Pop Ups

Hopefully you aren’t just relying on a Facebook page or cheap website template that looks like everyone else. Beyond that, one of the top things killing online business today is popups. It seems that those who aren’t getting results from one popup ad or message think it is going to work if they have two, three or four. If it isn’t working, don’t do more of it. If people can’t see the info they want on the page already, they are just going to click over to your competition.


Focusing On The Wrong Details

If you are going to do marketing, and especially hire someone to do marketing, be wary of getting hung up on the wrong details. The only thing that really matters if it works. Is it working? Is it profitable, or at least on the path to being profitable? If so, get busy fielding the leads.


Taking Too Long To Respond

Customers expect instant responses today. If you can’t do that, then hire help to handle it. Otherwise you are just wasting your time and money marketing.


Taking Too Long To Make The Offer

Taking weeks, days, and even hours to make an actual offer dramatically reduces the chances of closing the deal. Making offers could be so much faster, automated and intuitive. It will definitely separate you, and put you ahead of the competition.


Inaccurate Property Information

Providing prospective buyers with as much information as possible upfront can definitely help facilitate and speed up the decision making process. Though providing too much, and getting zoning or usage information wrong can also rob you of deals you should be closing.


Not Being Able To Fund Deals Fast Enough

Serious buyers and sellers just want to cut right to signing the deal today. You need to have the funding ready for your transaction so that you can close fast too.

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The Other Benefits That Make Wholesaling Real Estate Irresistible

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on Thursday, 15 April 2021
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Wholesaling is a preferred real estate strategy for a variety of very obvious reasons. Yet, there also some very important benefits both new investors and veterans of other strategies will find make this play irresistible.


You are probably familiar with wholesaling being the low risk, no hammer needed, fast way to get paid in real estate, and enjoy large lump sum gains. Then there are the tax benefits and supersized returns.


However, the benefits don’t stop there. In fact, for wise entrepreneurs and experienced investors the following reasons may be even more vital and urgent drivers to choose wholesaling.


Scale

Wholesaling is not only an easy strategy to scale up, but also down. This can be incredibly important during rotating cycles. Done right, you don’t have to worry about laying people off, defaulting on office or storefront space, or carrying too much overhead.


You can also scale up and down on-demand, whenever you like. Do more when you want to boost your income, and scale down when you just feel like taking it easy.


Vacation Time

Landlords never get the luxury of vacations. Rehabbers certainly can’t afford to take time off in the middle of a project. They aren’t even getting nights and weekends off. As a wholesaler you can choose to hit pause any time you want. You can pause your offers, and take a long weekend staycation. Or pause for two weeks and go to Hawaii with the family. All without really putting much of a dent in your income.


No People, No Property Management

You can certainly hire a small army of remote staff to really scale your wholesaling business. Though you can also make some pretty good money doing it by yourself. You don’t have to be recruiting and managing a lot of people. You don’t have to deal with all of the headaches of property management or have to step in when they let you down.


Never Be Worried About The Market

Almost everybody is concerned about the market and where it is headed next. It is stressful, and 90% of the time leads to bad decisions. Wholesalers don’t have to worry about that. They are always in and out and paid before anything changes on them. When things are ugly out there, the deals get even better and more plentiful. When the market is on fire and accelerating fast it is easy.


Easy 100% Financing

Sure, there may be ways to get really creative with the paperwork and deal structuring and blending funding options to finance buy and hold rentals and fix and flips with no money down. Though it will always take a lot more work and energy, and is never guaranteed to close. In contrast wholesalers can finance 100% of their purchases with the easiest financing available. Even with no appraisals or credit checks.

 

So, are you wholesaling yet?

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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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How To Make Money When You Can’t Find Any Good Real Estate Deals

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on Thursday, 30 July 2020
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The coronavirus pandemic has unexpectedly affected every aspect of our lives, delaying tasks and cancelling plans. If you are a wholesaler, house flipper or investor, you know the real estate market was not left unaffected. The initial market projections for 2020 have drastically changed.

But real estate is not dead. As the economy bounces back, so will the housing market. Realtor.com Chief Economist Danielle Hale recommends taking advantage of the online resources available. Interested investors can pursue listings online, communicate with the owner or seller by phone or email or text and complete transactions all in the comfort of their home, virtually.

There are a couple of challenges. Some owners, sellers and Realtors are being unrealistic. They are asking for far too much, or far too much down. Others think they don’t need to sell yet as foreclosure and eviction moratoriums drag on. This will bite many owners and investors over the coming months as they lose properties or have to sell at far steeper discounts.

So, as you wait for things to sort themselves out, what is the best way to make so COVID-safe additional money?

Stick to your numbers and find deals that you are confident will work. To keep up your income in the meantime, look for new ways to generate revenues and cash flow.

Best Transaction Funding has a deal to help you with this. Join our affiliate program and get a 10% fee on your referral’s transaction. If others are beating you to the deals, at least you can make money on all of those deals, without even having to do the work.

How does it work? Simply introduce a friend, family member, peer, client or other investor to the lending services of Besttransactionfunding.com.

The easiest and most convenient way is to automate this process with your own custom referral link. Send it directly to them, or post it online and let it work while you are sleeping and looking for other deals.

Otherwise, the introduction can be active, by promoting BTF’s 100% financing for real estate wholesalers on your social media and in online forums, texting and emailing your network, and recommending them when out there networking.

You can also email us to introduce your referral. You can also tell the referral to mention your name when they contact us, or for them to enter your name under “Referred by” and “Please specify” as they finish their funding request form.

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Boost Your Real Estate Wholesaling Business By Helping Other Investors

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on Thursday, 16 April 2020
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How can you boost your deal volume and the dollars coming in as a real estate wholesaler right now?


Many property investors are struggling to adapt to the new landscape. For many, their normal channels of business may have been disrupted and may or may not be for quite some time. The good news is that you can keep up and even grow your deal flow and income.


One way to do this immediately is to step up to help other investors. They are struggling too.


One of the most significant members of this group are landlords. Many have tried to step into this business since 2008. Many were tricked into thinking we wouldn’t face another turn in the cycle. Or they grossly overpaid for properties. They had no sustainability plan for something like this.


Many bought places relying on overpriced Airbnb rents. Most of that market has disappeared. It’s even illegal in many places right now. With unemployment heading for 50% or more, at least 30% of renters didn’t pay their April rents by the 9th of the month. Eviction bans mean they can’t get occupants out. Even more than not being able to weather this financially, landlords are scared.


They want their cash out. They can’t get good terms on refinancing, if they can even get loans at all. They need liquidity. You can buy their properties and bail them out.


Then flip  them to investors who are buying. There are plenty who are. Especially big funds. In NYC one family just bought 8 condos they plan to rent out after the crisis. You can even do this in bulk. Put together the portfolios to sell at once to a bigger buyer.


Best Transaction Funding is still funding deals. We find 100% of your purchase price when wholesaling properties.


How are you growing your business now?

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