Viewing entries tagged crowdfunding Subscribe to feed

Wholesaling: Real Estate & Mortgage Trends To Watch Now

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Tuesday, 28 August 2018
BestTransactionFunding

 

Watch out for these four real estate and mortgage trends that are evolving now…


The US real estate and mortgage market is changing fast. Many diverse trends and conflicting headlines are showing up. Some of these are local market differences. Like new foreclosure spikes by double digits and declining property prices and rents. Others may have more macro impacts, with bigger opportunities and consequences. If you are out there wholesaling houses now, make sure you know what’s going on.


Mortgage Interest Rates

Bank Rate reports that mortgage interest rates have come down in August 2018. Average 30 year fixed mortgages are only 4.37% and 15 year fixed loan rates are averaging 3.78%. That’s great news no matter what you are financing or refinancing.


Housing Beginning to Drag Down the Economy

Market Watch reports that housing is now finally beginning to pull down the national economy. The chief economist for Fannie Mae says that lackluster building activity, slow sales activity and and brokers commissions are all beginning to become a lag on the whole economy. Other analysts report that only around half the number of people are moving for jobs in 2018, and many home buyers have simply given up. Less building, fewer listings sold, and lower Realtor earnings can all start showing up in unemployment figures, GDP reports, and the balance sheets of local businesses.


While we never want to see other suffers, the sooner agents and sellers who have been overpricing listings catch onto this, the sooner wholesalers should be able to scoop more deals at better prices. If you’ve been longing for the glory days of 2008 and cheaper houses to come around, we could see more distressed sales and motivated sellers ready to take action soon. Providing you are wholesaling and are negotiating at good prices, this is all good news.


Alternative Lending

Investment capital is still plentiful for now. This is the time to use it. Non bank lenders have seen their market share rise over the past 4 years, and made over $60B in loans last year. In addition to transactional funding there are credit unions, crowdfunding portals, conduits, home equity loan lenders and private lenders will to provide capital. Real estate investors can use these sources to fund marketing, make down payments, do rehabs and grow their businesses. Don’t expect this to last forever. So, do take advantage of all the leverage you can get while it lasts.


Just watch out for shady lending and deals in the gray area which could make you a target and scapegoat when things go south. Remember what happened to all the stated income borrowers last time around.


Watch Your Advertising Practices

Facebook just got it with a big suit from HUD. The government agency alleges that Facebook has effectively let real estate professionals and businesses discriminate by providing them with its targeting tools for advertising on the social network. While no one should ever discriminate, many may be accused of it, even though they didn’t realize they were doing anything wrong by trying to market to their ideal audiences. Don’t think for a second that with all the pressure Facebook is under today that it won’t sell out its users and advertisers and give them up to the feds. This may seem extreme, but your financial survival and freedom may rely on revisiting your Facebook ads, promoted posts and social feed and removing anything which shows preference for marketing to any groups of individuals and leaving anyone out.

Rate this blog entry
0 votes

Can Transactional Funding & Real Estate Crowdfunding Benefit Each Other?

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Wednesday, 18 May 2016
BestTransactionFunding

Can transactional funding lenders and crowdfunding campaigns be used together for even greater results?

The debates over alternative and hard money lenders and crowdfunding portals bumping heads are increasing. Some have posed that crowdfunding can offer cheaper money. Others recognize that successful crowdfunding campaigns can cost a lot of money, and can be extremely time intensive, not to mention slow to fund. Some debate whether one of these capital sources will replace the other.

Could they actually work together? If harmony between these funding options possible? Could both transactional funding and crowd funded capital be used in the same deals?

There are a number of obvious differences between these two types of borrowing. Transactional funding lenders can sometimes charge higher rates in exchange for faster service and ease of obtaining cash, depending on the individual scenario. In contrast crowdfunding can offer the advantages of having many different parties involved in your project (some may be hard money lenders too). But expect to spend 10% to 30% of the funding goal on marketing, and keep in mind that it can take months to secure finances through this channel.

The truth is that there is not one answer to the transactional funding versus crowdfunding question. That’s like asking if food or drink is better. You probably need both. You’ll need or want each at different times depending on the situation and timing.

Perhaps one of the best blended strategies for investors in this arena is making an acquisition quickly with transactional funding, and then once the real estate is controlled – paying off that loan with funds from the crowd. Investors can also augment hard money they receive by raising the down payment from the crowd, or raising additional funds to make improvements from the crowd. Or crowdfunding campaigns can be used to improve a surrounding area; to aid in revitalization and elevating property values. How about using hard money to cash out the crowd and return their capital?

 

The options are endless. Perhaps these strategies and tactics are what more of the media should be focusing on to actually serve real estate investors well.

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of flash funding and hard money loans for real estate investors in America. Get a quote, and fund your next deal fast…

Rate this blog entry
0 votes

2016 Real Estate Market Trends To Watch

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Friday, 13 November 2015
BestTransactionFunding

What’s in store for US real estate in 2016?

We’re usually already inundated with predictions for the year ahead in real estate by now. One reason forecasters may be late to the party this year is the potential for contradicting trends which leave a lot of uncertainty around the specifics of property market performance over the next 11 months. So what factors are at work now, and what can investors count on?

Interest Rates

Uncertainty over the potential for fed interest rate hikes has been causing chaos in the stock market. It’s still unclear how soon we’ll see a robust series of rate hikes, or if we’ll experience ‘Permazero’ rates for several more years. Odds are that we’ll see some lift in rates in the next 12 months, but they may be slow in coming in order to avoid cramping current economic growth.

Affordability

Lack of affordability is unlikely to ease any time soon. Between Freddie Mac’s new deal to expand the definition of ‘affordable’ to give $18 billion of tax payer money to multi-billion dollar hedge funds for apartments and soaring rents due to the Airbnb Effect the cost of housing is only going up. This may be great for local government revenues, but may cause as much outward migration as it supports urban re-development.

Commercial Real Estate Turmoil

The National Association of Realtors’ Q3 2015 report shows a glut of office space resulting in high vacancy rates. This is only trumped by hotel vacancies which are being hammered by private rentals. On the bright side retail is growing and could be one of the strongest retail sectors ahead if wages pick up and support consumer spending.

Crowdfunding

Industry experts have already lost faith in crowdfunding as being viable for non-accredited investors, even before the final SEC vote on Title III of the JOBS Act becomes law. Still, institutional lenders are reportedly quietly turning to crowdfunding portals as their new generation of mortgage brokers which allows them to get around stringent underwriting mandates and expensive in-house origination costs.

Multifamily

With massive investments being made in multifamily by builders and private equity funds there is a lot of dollars and power that may not want to see a softening of demand for rentals. However, the government could also rely on a resurgence in home buying and lending to push the national economy forward. With millions of boomerang buyers becoming eligible for mortgage loans again and buying homes so much more attractive than renting consumers will be eager to shun landlords if they can.

Stocks

Stocks and tech could continue somewhat supported by growth in real estate, but appear to be set for an overdue crash. This would create even more momentum, with more capital pursuing real estate investments.

Summary

While the specifics of the market in 2016 are still a little cloudy, investors should be able to count on balance, with growth, with more clarity and more robust growth after election no matter who wins.

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

 

Rate this blog entry
0 votes