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One Dollar Home Deals Prove The Market Is Changing

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on Wednesday, 31 January 2024
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New Jersey has announced it will start selling off homes for as little as $1. Along with states like Ohio and New York, which are again working to get ahead of blight in the form of abandoned homes, it seems more distressed real estate is coming down the pipe for investors.


While many of these house deals require substantial repairs and may be reserved for retail home buyers, investors can expect more inventory to become available this year.


Distressed Debt And Real Estate Deals Are Building Up

It’s no secret that credit card, auto loan, and other debt has been deteriorating in performance, with a mountain of nonperforming debt that has been growing for several years.


As consumers run out of money, savings, credit lines, and find it harder to get new jobs, this will almost inevitably turn into more nonperforming debt sales, and REOs.


In fact, one economist has predicted there will soon be $1T in defaulting real estate debt to contend with.


Buyers have become more cautious, and as the Fed still hasn’t begun cutting rates, they are unlikely to swarm the market or be eager to pay recent market rates.


Get Smart

Many real estate investors in the current market do not have experience with the types of transactions that were popular in the last great recession. It’s a smart time to educate yourself about these types of deals, so that you can embrace them.


This includes REOs, short sales, and various forms of alternative and creative financing. Including using transactional funding to wholesale real estate.


You should know who the parties involved are, what their processes and timelines are, and start building the right relationships now.


Making Successful Real Estate Purchase Offers

What does it take to get offers accepted in this environment?


Fast closings are critical to sellers. Many are under a lot of pressure, and will lose their properties if they don’t sell on a tight timeframe.


Simplicity is key. Buyers can’t afford to be tied up in lots of contingencies. They don’t want long inspection periods, appraisal contingencies, and the like.


Finally, they will prioritize offers from qualified buyers with proof of funds, and who they can be confident in to close.

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Where Are The Discounts On House Deals Now?

by blogger1
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on Thursday, 30 April 2020
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Where are all of the discounts on properties which were expected in the wake of COVID-19?


As states begin to reopen and get back to normal, many real estate investors are asking where the deals are. Some may be disappointed we didn’t fall into a full on apocalypse. A lot of investors were expecting more motivated sellers and deeper cuts to pricing. So, where are they?


While there have certainly been disruptions, it doesn’t appear that there is as big of a financial and economic impact from the virus as anticipated. At least not yet.


People are filling hours of online content with memes and appear relatively carefree. While there are rumors of mass unemployment and lines for assistance, the retailers that remain open appear sold out of non-essentials like swimming pools and new TVs.


This is likely the result of a lag in the impact. Companies are still hiring hundreds of workers. Many can’t find enough. The temporary deferment of credit card and house payments, and promise of a ban on foreclosures and evictions, as well as token stimulus checks may be lulling millions into a false sense of security.


We are now entering a new phase when the help is fading, but regular incomes may not be bouncing back yet. At best many have depleted their savings. This gap will probably catch many by surprise in the weeks and months ahead. Expect it to snowball.


This could also be compounded by the usual annual spree of tornadoes, wildfires, hurricanes, unexpected healthcare costs and the legacy of personal tragedy from the virus.


Of course wealthy buyers are still splurging on luxury homes and big real estate funds are still buying units in bulk.


So, the best discounts on houses may still be to come. Sellers are cutting asking prices. More will be motivated as the ends don’t meet.


Investors could be specifically looking for deals among:

  • Vacation rentals

  • Non-performing annual rentals

  • Second homes

  • Urban residences and condos which are longer desirable with promise of recurring viral outbreaks and quarantine measures

  • Areas likely to rise in crime

  • Investors with pipelines they aren’t sure they want to close on now

  • Mature home listings ready to expire

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US Foreclosures Surge As 10M Homes Still Underwater

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on Thursday, 07 August 2014
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New data highlights massive pool of wholesale properties available for investing…

While the US housing market has rebounded quickly, many real estate investors continue to seriously underestimate the amount of house deals available to them for flipping for quick, and sizable profits.

New real estate statistics firmly buck the media spin suggesting it is hard to find value and foreclosure properties in the US in the second half of 2014.

While thousands of American homeowners have been lifted above water thanks to rapidly rising home values and equity, millions more remain in distressed situations. 9,100,000 remain underwater according to the latest numbers.

Per figures from RealtyTrac over a third of Nevada homeowners still owe at least 25% more on their homes than they are valued at (even values are going up daily). This is only topped by one central Florida city.

Unsurprisingly Nevada remains one of the top 5 states for foreclosures in the US. The other top 4 states for foreclosure activity include; FL, MD, NJ, and IL.

RealtyTrac’s VP says the time it is taking lenders to foreclosure in Nevada has actually risen as of June 2014. It now takes 494 days to foreclose on average, versus just 420 days in 2013. That means many more foreclosure homes coming down the pipe.

In fact, the Las Vegas Review Journal reports NV foreclosure starts rose 56% year over year, and 66% month over month to June 2014. This puts 1 in every 138 homes in NV in the default process. Twice as many Florida homeowners in currently in foreclosure.

Still, home builders don’t appear to be fazed and are still rolling out new projects. The market is heading up, and great times for real estate investors are ahead. However, there are still millions of great opportunities now, for taking advantage of spreads, and rapidly rising home prices. It is just a matter of honing in on the best locations.

Armed with fast cash from Best Transaction Funding real estate wholesalers should find no limits on deal volume, expect what they can personally handle.

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