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4 Unique Advantages of Wholesaling Houses

by blogger1
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on Thursday, 30 October 2014
BestTransactionFunding

Wholesaling houses has many obvious advantages. It also offers some unique and very powerful benefits many real estate investors at least seriously underestimate, if not completely overlook.

So what are these advantages of wholesaling compared to rentals or fixing and flipping houses?

1. Eliminating Disputes with Neighbors

When rehabbing homes to flip or hold as rentals neighbors can generate significant stress and become obstacles. Regardless of how well investors try to select tenants when holding properties, crazy and ignorant neighbors can cause all types of bizarre disputes which can lead to losses of income, property damage and more. Even in high end neighborhoods landlords can face the likes of Justin Bieber moving in next door and causing tens of thousands of dollars in damage by hurling objects at your investment property. This can all be avoided with wholesaling.

2. Compounding Gains Faster

Even the best rental homes, high performance mortgage notes, and rehabbing can mean sluggish returns compared to wholesaling. Not only can property wholesalers put down less money, which dramatically boosts cash on cash returns, but with lump sum gains being able to be reinvested and flipped multiple times per month on an exponentially growing basis that annual and lifetime returns on wholesaling can seriously put other investment strategies to shame.

3. Eliminating Holding Risks

Even house flippers fixing up and reselling properties in a period of weeks or months face major exposure to risk. From hurricanes and earthquakes to value dips due to neighboring foreclosures every hour properties are held means weathering a barrage of threats. Insurance is one of the necessary evils, but talk to a handful of residents in areas hard hit by hurricane Sandy or in storm prone South Florida and you’ll no doubt hear plenty of nightmare stories about how insurance companies fail to deliver.

4. Easy Access to 100% Financing

One of the really beautiful benefits of wholesaling houses as a real estate is easy and streamlined access to working capital and 100% financing. Via Best Transaction Funding wholesalers can finance their whole deals without asset verification, having great credit scores, or even having another job.

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Tapping Mortgage Note Investors For Wholesale Property Deals

by blogger1
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on Thursday, 26 June 2014
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Are mortgage note investors now one of the best sources of house deals for real estate wholesalers?

Current market conditions are ideal for real estate wholesalers. Some real estate investors of course have been complaining about the decline of foreclosure homes and publicly available inventory, as well as the rapid rise in home prices in their local areas. So where can more deals be found? Could note investors be the gatekeeper to a new sweet spot, and source of discounted homes for flipping?

It’s no secret that banks and asset managers have both delayed starting the foreclosure process on thousands of delinquent home loans, and have continued to hold many properties off market. What many may not realize is just how many of these non-performing loans are being shuffled off bank books to note investors.

The U.S. housing market is healing, but new, and legacy defaults are still substantial. However, the statistics showing foreclosure activity dropping are largely in part due to bad loans being sold off to other investors, rather than the banks foreclosing, auctioning them of, or selling them as REOs.

A growing number of real estate investors have been buying non-performing notes in the hopes of bringing them back to performing again, and benefiting from high yields and discounts.

Of course, not all of these loans can be made to perform, even if they are modified. Some borrowers simply can’t afford to keep their homes, or have no intention of trying. In these cases note investors need to foreclose, or permit short sales in order to allow homeowners a way out, and to be able to recoup capital. Note investors like the benefits of paper, they don’t want to be stuck with real property. It just doesn’t fit their strategy.

For wholesalers that can connect and build relationships with these mortgage note investors the opportunities for tapping into a significant stream of properties ripe to be flipped is huge. It provides a valuable service to note investors and homeowners, while skipping ahead of those competing for wholesale deals on the MLS, at auctions, or in mailboxes.

With Best Transaction Funding wholesalers can take on virtually unlimited volume, and flip far more houses than their competitors. It is just a matter of finding them, and building relationships. Note investors can be found in online real estate forums, advertising in magazines, via Google, and at local Meet Ups.
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