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The Best Real Estate Strategy For Starting Out?

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

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

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

Turnkey Rental Property Investing

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

Private Lending

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

Real Estate Wholesaling

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

Summary

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

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Wholesaling Trumps Fix And Flip Real Estate In 2017

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on Thursday, 06 April 2017
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Is wholesaling the better real estate strategy in 2017?

The real estate market is always changing. That makes it smart to have a good mix of tactics to ensure cash flow remains consistent. Fixing and flipping was made cool by reality TV. Yet, current and emerging market conditions may make things easiest for wholesalers in 2017 and 2018.

There are several dynamics in play which may make things more difficult for house flippers and buy and hold investors this year, and looking forward. This includes; rising interest rates, declining rental rates, high property prices, and limited access to credit for retail home buyers.

Data from Zillow and reports from local landlords suggest that rents in San Francisco have been falling sharply. Zillow also predicts property prices there are peaking and will decline later this year. Lower rents make properties worth less. That can also cause havoc for landlords who are leveraged and have loans to cover. At the same time some parts of the country are seeing sellers and agents prices properties wildly high. They are pricing properties based on Airbnb rentals, or may just be throwing listings against the wall and are hoping for the best. While capital may be plentiful for real estate investors, it is still really hard and unappealing for regular home buyers to apply for mortgage loans.

This means some house flippers may find themselves caught with no profit, especially if they are taking extended timelines to fix and flip, or wind up spending too much on rehab. In contrast, wholesaling can work in any market. And there will still be demand for prime property, providing it is priced well.

Just think about what is easier. To put a property under contract for $150,000, that may be worth $250,000 after repairs, and selling it for $199,000. Or taking 3 months and putting in another $30,000 plus in improvements? In this scenario wholesaling would probably still be more profitable. The market for the property priced at $199,000 is also going to be a lot bigger than priced at its full retail ARV. Wholesaling gives the opportunity to get in, out, and paid, fast, with the least amount of risk.

There will still be viable rehab and rental deals out there today, but wholesaling may provide a much needed tactic for ensuring consistent returns and income in the months ahead.

 

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

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Minimizing Risk In Investing: Real Estate Fraud In 2014

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on Thursday, 01 May 2014
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While often underestimated, minimizing risk in investing is just as important as striving to make gains. So what can real estate investors do to minimize risk and ultimately increase their overall potential?

Choosing wholesaling as a real estate strategy and niche offers natural protection against risk. It really lowers risk as far as it can be hoped to do so. This is especially true when using leverage in the form of transactional funding and double closings.

However, property investors are also wise to defend themselves with LLCs, tax structures, and having good real estate attorneys on retainer in advance. Too many are leaving these elements to being an afterthought or only when they run into trouble. This is too late.

Preserving wealth in real estate investing is the number one financial rule of wealthy and sophisticated investors. Preserve your capital and you’ll be able to continue to see gains. However, more important than protecting capital is preserving freedom to keep generating income year after year. This is sadly where so many have become victims over the last decade.

There have been many victims of bank and real estate fraud over the last decade. While many might not feel any sympathy for those jailed for their parts, they certainly have become victims too. As the new real estate boom grows so apparently are real estate scams. Daily investors, Realtors, mortgage brokers and title reps go to jail, often leaving children without parents.

This makes one of the most important factors in minimizing risk as avoiding being caught up in fraud. There is no short cut or amount of money worth it.

Popular online real estate forums are packed with poor advice, people seeking advice on how to circumvent the law, and even boldly and foolishly bragging about how they have gotten away with it. Don’t just do it because everyone else is, or because you might get away with it. Don’t do it because real estate agents or bankers say it’s okay. They’ll be the first to throw you under the bus when they get busted.

With transactional funding, legitimate double closings, continued availability of so much undervalued property and rapidly rising home prices, there is plenty of opportunity to make incredible money from wholesaling houses with little risk. So enjoy it, but do it right and preserve your wealth and wealth making abilities.
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