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Surviving The Next Phase Of The Real Estate Market: What Not To Do To

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on Thursday, 01 December 2022
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As the real estate market changes there will be a few big winners, while the majority of players end up folding and going to try and find jobs elsewhere.


This clearing out of competition, the bad apples, and those with poor operational skills is a great thing for serious real estate investors and business owners.


In order to be one of those survivors that comes out stronger, with more credibility, and in an even better financial position it is critical to avoid these classic mistakes which can take down the largest companies, as well as newer business owners and individual portfolios.


It’s really all about avoiding falling into scarcity mode. You must keep up that positive mindset that got you the great results you want more of.


Stripping Service & Product And Charging More

This is always a huge mistake. If anything, customers want and need more value and better deals. If you cannibalize your most loyal customers they won’t forget. It will cost you a lot over the long run.


We’ve seen this with banks like Wells Fargo in the past. As well as streaming services. Recently Mercedes Benz thought it was smart to start charging an extra $1,200 a year if you want your car to accelerate at its full capacity. No doubt leaving many customers frustrated that they aren’t getting what they thought they paid for.


Thinking You Can Get Away With Faulty Products

Some get desperate and will find all kinds of excuses to justify selling faulty and harmful products. In the past we’ve seen it with house flippers going into areas hit with flooding or hurricanes and simply covering over the dangerous mold. Or builders building new home developments on contaminated land. More recently there has been a huge movement among victims of Camping World which has developed a reputation for selling RVs that are leaking when brand new, and may have mold and other dangers for families. It will catch up with you sooner or later.


Burning Your Sellers

Developing relationships with buyers and sellers is vital for long term success and profitability. Especially volume buyers and sellers. Don’t burn relationships that could be a steady source of income each month for one deal. Such as by backing out of contracts. Do your due diligence first. Don’t tie them up and cost them money, only to leave them hanging.


Letting Great Talent Go (To The Competition)

The majority of companies, all the way up to the largest and best funded global corporations seem to be making mass layoffs and are freezing hiring. Many may have hired far too many people, too carelessly, and too fast. You may have to right size your team too.


However, great talent is your best asset. Great people are extremely rare to find. Don’t let them go if you have them. Or they will go to the competition and become your competition.


Skimping On Marketing

You’ve got to show up stronger than ever right now. Those that keep marketing will keep on gaining market share as others slow down or try to be cheap and publish lower quality content. This keeps shifting the power and profits to fewer players that keep getting stronger.

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How Much Of A Discount Do Real Estate Wholesalers Need?

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on Thursday, 01 July 2021
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What discount do wholesalers need to make offers on homes, and turn a profit?


There is a lot of misinformation about how much house wholesalers should pay for properties and make offers for. This can be a major detractor for sellers and agents selling to wholesalers, as well as for wholesalers themselves, when out there searching for deals and making offers.


Be wary of old rules of thumb. Especially in a fast changing market, and when what’s happening out there can be so different from one local market to the next. You don’t want to short yourself on the volume you could be doing, or get stuck and go bankrupt holding deals you paid too much for.


How Much To Offer

Formulating offers is actually quite simple as a wholesaler. You take how much your end buyer will pay, and subtract your costs of doing business and desired profit margin.


End resale price - (costs + profit) = acquisition offer price


If you secure your buyer upfront in this way, then you already know your exit price, and can use transactional funding to finance 100% of your purchase and closing costs.


Build Your Buyers List

The key to this is building a big and growing buyers list of qualified buyers.


Then get to know them intimately well.


Understand The Market, Not Just The Headlines

Everyone loves to quote the big media data points. Yet, in the back of all of our minds we know that we shouldn’t be trusting tabloid news. And it's all tabloid and fake news today.


You have to know the real local market as it is on the street.


Know how much properties are worth to retail home buyers, based on what they can afford and finance. Know how much they are worth to landlords, based on their desired yields and calculations. Know the discounts that house flippers need to be safe and profitable in the current market.


Summary

It really doesn't matter if you are buying properties off of the MLS at peak prices, as part of a bulk pool of REOs, or a direct to seller, direct mail find or inherited home. The math is still the same. Be wary of being too glued to rules of thumb in dynamic markets. Know your buyers and you’ll know your offer prices.

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4 Must Have Skills Investors Need For 2021

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on Wednesday, 18 November 2020
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These are the essential skills real estate investors must have, develop and lean on over the next year.


If you want to survive and thrive, here’s what to focus on mastering…


Maintaining Integrity, While Exuding Optimism

There is a huge need for optimism in the world out there today. Even more so in real estate and financial markets. Of course, in reality there is a lot for home buyers, owners and individuals and families to be concerned about and to consider. It is times like these when most novice real estate agents and investors keep denying there is any distress. They fill their email newsletters, social feeds and sales pitches with blind fluffy optimism and fear scaring off customers by telling them the truth about the changing market, foreclosures, and risks.


These things are obvious, even to outsiders. By glossing over them and trying to cover them up, you only lose your integrity, trust and respect. Not to mention a lot more sales.


Instead, be transparent about the good and bad, and make your case for why they should still take action with all the facts on the table.


Negotiating Skills

The market is changing in such diverse ways and the media is such a mess that there are many unrealistic sellers in the market. Many are far overvaluing their properties and far over-estimating the demand for them. Even many investors and wholesalers are falling into this trap. Don’t be fooled, there is a lot of persuasion of buyers to be done. Being too arrogant or out of touch with the real data will break you. Don’t waste leads. Learn to negotiate with them better.


Delivering Customer Delight

Standard ‘customer service’ or ‘satisfaction’ just isn’t going to cut it. You’ve got to wow your leads and customers. This should be the number one priority in your business, even above sales and dollars. If you delight potential customers, the rest will take care of itself.


Discipline

You must keep investing, but stick to your numbers. Don’t gamble and speculate. The market and world is changing so fast. Not even by the day, but by the hour. Don’t assume anything about the market. Invest by the numbers and lock in your exit before you enter a deal.

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Post Election Real Estate Outlook: Perfect For House Flippers?

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on Thursday, 12 November 2020
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Now that the presidential election seems mostly over, what does the outlook for the US real estate market look like? Has the recent vote created the ideal conditions for house flippers?


The K Shaped Market

The second half of 2020 seemed to bring what many are calling a K shaped market or economic recovery. Billionaires added more than 30% to their wealth in just a matter of months thanks to the crisis. A few well positioned companies have thrived on the recent chaos and shifts. Many other parts of the economy seemed to be struggling, with the future of millions of jobs in question.


With such a close presidential election we also have two very different perceptions of where the economy and real estate market is headed. Perhaps for the first time in recent history, the country will be split down the middle in what it expects the market to do, and what they need to do to survive and thrive over the next few months to four years.


Panic & Distress

The 50% or so of the country which didn’t vote for the president-elect are not very optimistic about the economy or property market. They are cringing. They are bracing for new lock downs, rising interest rates, and the end of tax benefits for long term holding of any assets like real estate. They don’t anticipate any healthy economic growth, or jobs.


Those in this bucket can be expected to be trying to liquidate any existing real estate assets. They want out before new taxes arrive and values fall too far from recent peaks. The best advantages will probably go to those who can exit before the end of the year.


With calls from the president elect’s advisors to institute a new national lockdown, millions more may move away from dense urban cities to find more freedom and space.


High On Optimism & Exuberance

Of course, the other close to 50% of the country must have cast their votes believing their new president will be great for their bank accounts and property values.


This euphoria of winning should be spurring great financial confidence and a buying spree. Aside from the usual sprint transactions as those working in politics move, many should be upgrading their homes, and buying up as much investment property as they can, expecting today’s prices to prove cheap compared to the lift they will get over the years ahead.


Work The Middle

So, on one hand we have both very real and even more perceived distress in the housing market. Then the other half of the population ought to be extremely bullish and active. These are the perfect conditions for real estate wholesalers and house flippers. It may be the most split our market has been between bulls and bears in recent history. You have both motivated sellers and optimistic buyers.


Real estate investors stand to benefit a lot from working the middle of this equation, and there is still easy access to financing for real estate wholesalers.


Just make sure you really know your end buyer market. Don’t assume. Presell those deals and know what the market will really bear in terms of pricing and terms before you get tied up in contracts and inventory.

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Cease And Desist: Cities Move Ban House Flippers

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on Thursday, 05 March 2020
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Creative new moves are being made to block house flippers. What do you need to know? How can you keep your business thriving?


No Love For House Flippers & Wholesalers

Despite having single handedly pulled the US and probably the world out of the financial crisis, real estate wholesalers and house flippers aren’t getting much love.


In spite of the animosity and blame shifting, investors engaged in 2008 when no one else would. They took on the risk and put in the sweat to drag the country out of the hole. They saved people from even worse financial situations. They revitalized communities and saved home values for neighborhoods.


Now they are once again being blamed for rising property prices, high property taxes and gentrification.


Some states and cities are passing rules to try and prevent wholesaling and house flipping. Like Ohio and Illinois. Now Brooklyn, NY has its own plan to keep them out.


Cease & Desist

Brooklyn residents are pushing for Cease and Desist zones and the creation of a Do Not Call style registry which would make it illegal for house flippers to even try to contact them to buy their homes. The financial and legal penalties for ignoring the law could be steep.


What can you do to keep your business going now?


Move Fast, Make LOTS Of Offers

New York actually has many new real estate related laws on the verge of making things dramatically more difficult for investors. If you want to acquire, wholesale or flip in NYC, now is the time to make your move.


Go big. You can be cranking out many offers a day. Do it now, while you still can.


Inbound Marketing

When you can’t make outbound offers to buy homes, be there to take inbound leads.


Show up online when they search for help. Educate them on how you can help, and how they need to take action fast. Make it crazy easy to get an offer. There is really no reason home sellers shouldn’t be able to get true instant offers right online in seconds.


Be sure you are setting up a dominating presence now before the competition.


Personal Connections

Spam is the real problem. Irresponsible real estate flippers have just over done it. They sabotaged themselves with no respect for homeowners. Now it is biting them back.


If you can’t target them with Facebook ads, direct mail, email or text messages and phone calls any more, it is high time you got out from behind your screens and started making more personal connections. This is your chance to really help people without all the spam.

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New Laws That Are Forcing Investors To Switch Things Up

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on Wednesday, 13 November 2019
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A flurry of new laws are forcing real estate investors to adapt or be regulated out of their niches or entire businesses. Here’s what you need to know…


These are just some of the recent legal issues, new rulings and proposed laws that might make you want to restructure how you do business, your real estate investment strategy, and where you invest.


ADA Lawsuits

ADA lawsuits have been crippling businesses for years. This is especially true in California where they are rife and there are many professional ‘hitmen’ who are making a full time living from suing business owners. Yes, equality is important and so is providing reasonable facilities to those with disabilities. Yet, some of the mandates put on businesses now may catch you by surprise. Some investors may have thought they were in the clear by only operating online. A recent lawsuit against Domino’s pizza changes that. The supreme court shutdown an appeal by the company which is being sued by a blind man who says he couldn’t use their website.


Education

A recent suit against a real estate education company linked to two reality TV stars may shake up some of the many giant guru businesses that have popped up over the past decade. This is not a new concept. Though it is a warning to be very careful about the information you provide to others, and the legal risks of sharing real estate investing education. Especially if you are charging for it.


Hiring Help

The California Trucking Association just filed a new lawsuit appealing new rulings that could kill off 70,000 member jobs. The new employment rules aim to make it difficult for Californian companies to hire independent contractors instead of full time employees with benefits and protections under that classification. It is also an issue for Uber and giants like Apple and Amazon whose workforce includes many remote workers and contractors. There may have been some bad actors forcing contractors to work like employees. Though a new law of this severity could also kill off much of the progress made in the gig economy and millions of jobs. All while making it less desirable to hire people. Real estate investors may find a work around in asking their freelancers if they have a company they can bill as an outside vendor and service provider instead.


Taxes

Real estate investors also need to watch out for new taxes. If Bernie Sanders wins the 2020 presidential election he says he’ll implement a new 25% tax on house flippers, a vacant property tax, and new tax rate of 52% for high income earners. Investors may be able to avoid many of these bankrupting new taxes by switching from buy and hold and flipping houses to real estate wholesaling instead.


Rent Controls

California and New York have recently brought in sweeping new rent controls and protections for tenants that may prevent them from being evicted. That dramatically increases risk for lenders on properties there, and could put buy and hold investors in the red for a very long time. Expect this to push more to investing in other states in 2020.

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Freaked Out By Big iBuyers? Here’s What You Need To Know...

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on Thursday, 03 October 2019
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Are you getting freaked out by these giant iBuyers in the real estate market yet?


Giant tech and real estate companies are moving into the market. They want to own it. It’s a major shift every investor and business in the industry should be paying attention to. Here’s the good, the bad and ugly of what you need to know about them and their impact.


The Who, What & How Big of iBuyers in the Real Estate Market

There are three really big players in this space, with even bigger funds behind them. We’re talking about this new breed of supersized online home home buyer who is offering sellers cash for their homes and the promise of a quick transaction.


In addition to Facebook and Amazon who still very much want to get involved and stake their claim to the US housing market, there are OfferPad, Opendoor and Zillow.


OfferPad recently inked a deal with Keller Williams to buy up homes. Opendoor has forged a similar partnership with Redfin. They’ve also hooked up with Lennar to promise movers one seamless transaction for trading up from their old home to a newly built one. Opendoor has raised hundreds of millions of dollars from very powerful venture capitalists. Zillow is notorious for being willing to lose billions of dollars just to buy up market share and drown out the competition.


What They are Doing Well, and Not

These companies are doing great about making noise, getting in the press and raising money. If you just giant companies like these, then they may also carry a lot of credibility.


They have mountains of cash to buy homes. They have great infrastructure for turning around and wholesaling or flipping these homes for a small profit in just days. The amount of capital they have and authoritative voice on prices also gives them a lot of power to manipulate home values and the market in their favor.


Of course, with all giants, they are pretty slow moving as well. Each focusing on expanding to a few major metro areas at a time and have very tight buying criteria.


The numbers show at least half of sellers have been rejecting their offers, so they may not have nailed this model yet. At least not at scale.


How Big iBuyers are Helping You

No small company or individual real estate investor should be wanting to take a billion dollar giant head on. It will get ugly.


However, these companies may be helping wholesalers and house flippers more than you realize.


  • They are making selling your house online to a wholesaler normal

  • They are leaving plenty of properties un-served

  • Their heavy 7% plus fees leave room for better offers

  • They are still essentially working as Realtors, and many sellers don’t like that

  • They could be your biggest end buyers

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

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


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


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


Individual Cash Buyers

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


Investment Funds

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


House Flippers with Specialized Financing

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


Boomers & Generation X Home Buyers

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


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

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Who Are The Top Buyers Of Wholesale Homes Now?

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on Wednesday, 07 March 2018
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Who can you be flipping your wholesale homes to now?

If you want to wholesale more properties, wholesale faster, and make more profit, it helps to know who the most active buyers are in the market. There is more than one type of buyer for wholesale houses. Bulk up your list with them.

Rehabbers

Rehabbers and fix and flip investors are still one of the top buyers of wholesale homes. They need this inventory to fuel their businesses and incomes. Having a consistent source of wholesale deals allows them to stay focused on what they do best (fixing). This is becoming even more important as house flippers look for new areas to work in, with more opportunities.

Rental Property Investors

Rental property investors also need to keep their pipelines full of new acquisitions. They are needing to dig deeper and deeper to find house deals where numbers work. Some may want to make renovations and improvements, others won’t.

Other Wholesalers

While it’s important not to get tied up in long chains, other wholesalers with bigger buyer lists, and who can handle more volume may be some of your best contacts. These may be other pure wholesalers, investors looking to owner finance and create new mortgage loan notes from these properties, and even funds.

Retail Home Buyers

Regular home buyers are increasingly looking for wholesale house deals too. Too many other properties are being overpriced, and inexperienced and unrealistic agents and sellers are overpricing and have little in the way of negotiation skills. Today’s buyers want to feel as if they are getting a good deal. Some may take more work than other wholesalers, but they may pay more too.

Non-Profits

Nonprofits and not for profits are also looking for affordable housing supply to supply their users with, or to house workers and those they help. They may even buy your deal in bulk.

Home Builders

Small builders are often finding it more profitable to acquire existing properties and fully renovating them instead of building from the ground up. It can be greener too. Even larger builders often need to piece together larger parcels to put new communities and projects on. It’s much easier for them to work with wholesalers than regular homeowners.

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Should More House Flippers Be Seller Financing Their Deals?

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on Thursday, 22 February 2018
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Is is smart for more house flippers to be seller financing their deals to retail buyers?

The latest figures from ATTOM Data Solutions’ house flipping report shows that flippers are down to a record low number of deals, only around 65% are using cash for their deals, and it is now taking over six months to turn the average flip. With this in mind, many house flippers could find offering seller financing on their resale properties helps a lot.

Rather than getting easier, there could be more difficult in obtaining home loans for end buyers ahead. Offering to hold the mortgage, do wrap around deals, or short term lease options could all help.

For a start, it can dramatically speed up the resale. Instead of sitting on the market for six month collecting dust, and going down in value in the perception of buyers, advertising seller financing could lead to a very fast resale deal.

Higher resale prices are another reason to consider this strategy. The types of buyers who are most likely to take these offers are not as price sensitive. They know there is a trade off in price versus terms. They are more worried about the ease of getting in, and the monthly payments.

In taking a seller held mortgage, investors are creating a new flexible paper asset. It can be held for ongoing passive income, sold quickly for cash, or a combination of both.

As a wholesaler you may be able to afford to do this if you are buying super cheap assets, say $4,000 to $40,0000. Or connect your flippers you are selling to with rehab lenders and private lenders who will give them a year to pay them off. The more you help your flipper clients, the more they can buy from you.

The owner financing concept can work well, IF sellers are providing attractive and competitive terms, and a trustworthy presentation. Many are not. They are asking for way too much in down payment, are not leaving enough spread in payments for a buyer to rent out the property, and are not squashing concerns about the seller being able to live up to their end of the deal. Keep these factors in mind.

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Wholesaling Trumps Fix And Flip Real Estate In 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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New Breeds Of Real Estate Loans Could Help House Flippers

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on Thursday, 30 March 2017
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These new real estate loans could help house flippers do more deals…

Capital sources are once again innovating and bringing out new loan programs. Some may be used directly by real estate wholesalers and house flippers. Others can be introduced to retail buyers and end investors to increase their ability to absorb new inventory.

Transactional Funding

Transactional funding has been publicly available to a broader range of real estate investors since around 2008. Yet, it is still seriously underutilized. Many investors are sitting on the sidelines, or are doing a fraction of the deals they could be, due to liquidity challenges. Transactional funding offers easy and fast access to 100% financing for wholesale deals.

Stated Income Loans

While transactional funding may provide the easiest qualifying of all loan products on the market today, it is short term money. A new variety of stated income real estate loans are emerging that could be ideal for helping experienced investors to get back in the game, and to enable active investors to expand their capacity and portfolios. These loans do not require tax returns or W2s, allowing for a faster and lower hassle approval process. Wholesalers should be connecting their end buyers to these financing providers to create more win-wins, and to scale deal flow.

Equity Sharing Mortgages

Lenders have gotten smarter. They may prefer the easy of lending and debt investing versus owning and managing physical assets. However, they also don’t want to miss out and leave money on the table. So, with equity sharing mortgages they are able to provide great financing terms, and get a piece of the equity appreciation as well. These loans may offer more attractive terms to investors, and can give them advantages of having an experienced and connected ‘partner’. Just be clear about the fine print.

Lines of Credit

More and more lending channels are ramping up their offerings of unsecured lines of credit. Lenders and private investors have trillions in capital to deploy this year, and they want it out there working. Unsecured lines of credit are ideal for rehabbers who may need more working capital, as well as the liquidity to jump on new deals while completing projects already in the pipeline. Again, the better wholesalers do at connecting their end buyers with these real estate financing sources, they more valuable they become, and the more business volume they can do.

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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Does It Matter Who You Flip Your Properties To?

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on Thursday, 25 August 2016
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Does it make any difference who you flip properties to?

Some real estate sellers really don’t have a choice who they sell to. If they list a property with an agent, on the MLS, or at an auction, they really can’t pick and choose. If a buyer comes in with a full price offer their agent is at least due commission for that. But house flippers and wholesalers do have some control.

You can choose who you promote your property deals to. And you should.

Note that you cannot, and should not discriminate in any way, shape, or form. That also means you should be able to back up your choices of buyers. Government and regulators are increasingly stepping in, and at least in one area now control how landlords choose tenants. But it is very important to choose.

Why? We aren’t just talking about selecting the best qualified buyer who is most likely to close on time. That’s a given. However, as the market changes investors will find their future in the business is largely dictated by their buyer choices.

It matters for your reputation. It matters for staying out of legal trouble. In turn this will make a big difference in how many referrals you get, how many repeat deals you do, and the volume you can do. If you are tied to a rehabber who does a shady job and just covers up the mold instead of remedying it, or who does dangerous and illegal electrical work, that can come back to haunt you. Not just legally, but having to live with the fact that you had a hand in harming someone else and their family.

While we all want to maximize profit that also means looking at the long term picture. Are your end buyers pulling a ‘Valeant’ and are pumping up prices so high they are unsustainable, and that they will derail the area due to lack of affordability? Or are they helping people get into good homes and investments while making a fair, but very attractive paycheck?

So how do you get the right buyers? One conversation will usually tell you a lot about a person and their motivations. Google is a pretty handy and fast to use tool as well. Though you can also streamline this process and filter your funnel by sourcing buyers from the right places. Instead of blasting out to the whole world, what if you sought buyers from on and offline groups that shared your same values. Who follows the same people on LinkedIn or Instagram as you do? Who attends the same types of local meetups?

This isn’t an easy decision, and it may not appear to put the most money in your pocket this month. But in two years from now it could make all the differences in whether you are still in the real estate business, and how much of your gains you get to keep.

 

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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Top Banker Says Don’t Put New Money Into Stocks

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on Thursday, 04 August 2016
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One of the top bankers in the US has said not to put new money into the stock market. So what do we do now?

While the world’s financial markets continue experience the rollercoaster ride kicked off by the Brexit, former CEO of Wells Fargo Richard Kovacevich told FOX Business he didn’t think people should be adding new money to the market right now. So if such a high profile and experienced analyst is taking this stance, what should the rest of us be doing with our money and investments?

At the same time bonds have fallen to terrible and even negative yields, gold prices have been pumped up by fear, and tech stocks have been looking frothy for quite a while. How do we keep making money with 3 or 4 of the major market options overvalued, ripe for a correction, and potentially delivering negative returns?

Wells Fargo’s former CEO says he’s piling up cash on the sidelines while waiting for a dip in prices. That’s not a bad strategy if your only alternative is to invest in depreciating assets with negative yields. Fortunately, there is also real estate to consider as an investment, and many are. Even if fluctuations happen in property prices in the future house flippers can still make money by getting in and out at the right prices, or locking into rental income which can provide steady yields regardless of the rest of the market.

So what to do? Keeping cash for value opportunities may be wise. Of course inactive cash also devalues by itself. House flippers and rehabbers can beat this by putting money in to value add deals and getting out again quickly. Real estate wholesalers can feed both rental property investors and rehabbers by using 100% financing from Best Transaction Funding, and get in, out, and paid with low risk, and massive ROI. Any cash that does need to be put to work can then be spent on marketing and growing the business to increase volume and revenues.

How will you invest?

 

Authored by Best Transaction Funding - the leading source of transactional funding for real estate wholesalers in the US.

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You Should Be Tapping Other Real Estate Investors For Deals

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on Thursday, 28 July 2016
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Need more real estate deals to buy and flip? Maybe tapping other investors is the key?

Real estate wholesalers are really spoiled when it comes to the ability to scale and do volume business. With transactional funding in their pocket wholesalers are really only limited by the number of deals they can find and their systems to take them on quickly and process them. Yes, end buyers may be a factor, but with Brexit and concerns over the stock market and bonds there is really no shortage of them. The question facing most is where to find more acquisitions?

There are many ways to find more inventory. You can tap Realtors and the MLS, or go direct to FSBOs, as well as those representing estate and probate properties. However, there are also some powerful reasons to look to your peers.

Other investors can be easier to work with. They understand the business and deal structuring. So they can be easier to negotiate with and close. Right now we also have a lot of investors with property to unload. Many are highly motivated, and can be pipelines with whole streams of deals.

This includes lenders who have taken back property as OREO. But it also extends to aging landlords who want to cash out while rates are low, novice house flippers who have found them stuck and out of cash due to failing to work the numbers correctly, and even other green wholesalers who have been finding deals but lack the capital or buyers or know-how to cash in on them.

There are a number of ways to find and connect with these motivated investors. Via real estate agents, direct mail, networking at local events and clubs, driving neighborhoods, establishing an online presence in this niche, referral partners, and tapping online real estate forums.

Equipped with transactional funding you can get out there and take on great amounts of deal flow, while bringing fresh cash to the mix. However, even though this may seem like an opportunistic opening; look for ways to create true win-win solutions and build your reputation and relationships. Make them feel good about the deal and open the gates for many more transactions to follow.

 

Authored by BestTransactionFunding.com - the leading source of transactional funding and for real estate wholesalers in the US. Request your Proof of Funds Letter today and go get those deals!

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Web Still Wide Open For Realtors & Real Estate Wholesalers

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on Thursday, 29 May 2014
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Are aging, low tech real estate agents and investors actually making it easy for newcomers to win more business on the internet?

Inman News and NAR have recently raised the issue of today’s aging real estate professional population, and the opportunities it offers for the young and ambitious. Even though most Realtors say they plan to stay in the business for another two years, the average agent is now 56 years old. This, along with the new growth phase we are entering, has led to real estate has been dubbed one of the best careers to get into.

While older generations have been adopting technology, and iPads have become one of the most popular presents for grandma during the holidays, many real estate workers have been very slow to integrate. It took years for many to start using email. The latest statistics suggests that despite the presence of drones and Skype, many are still not embracing the most basic forms of online real estate marketing.

A new 2014 Member Profile report from NAR suggests the vast majority of Realtors are spending very little on internet marketing.

The report found Realtors spend far more on their vehicles than any other business expense. The median amount spent to maintain their real estate websites in 2013 was just $200. Many top real estate wholesaling gurus spend far more than 10 times this amount on online marketing per month.

A little more than half of Realtors say they now use social media for real estate marketing, but few reported have a blog. Industry news analysts have been criticizing agents for their poor use of SEO, while others highlight the data showing low repeat business and referral statistics as a percentage of total business volume.

This suggests good wholesaling websites, real estate blogs with sustainable SEO strategies, and automation for follow up and asking for referrals could help both agents and wholesalers quickly rise above much of the perceived local competition, while increasing net earnings.

Those on extremely tight budgets could find the web their best ally in getting more out of their marketing dollar.  Affiliate programs which generate referral income for everything from real estate books to recommending the best transactional funding lenders, can also be used to increase income and offset online marketing investments, all while increasing their value in the marketplace.

For those without the patience or desire to learn new technologies, summer interns, apprentices, and hiring young tech savvy freelancers on an as needed basis could provide a dramatic edge. Who knows, you may just discover the next manager to help you head up your real estate business so you can hit the beach or golf course, and simply collect the rewards of the infrastructure you have created.

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