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Keeping Deal Flow Alive When Your End Buyers Are Landlords

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on Thursday, 02 September 2021
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How do you keep your deal flow alive when you end buyers are landlords and buy and hold investors?


Pandemic lockdowns and ensuing restrictions, new policies and eviction bans have rocked everything rental property investors thought they knew about real estate. This might have put a dent in your deal flow if you’ve been wholesaling houses to them. So, how can you help them, and keep your business flowing?


The Big Eviction Ban Problem

Covid related restrictions and rules have impacted rental property operators in a variety of ways. One of the most notable is eviction bans. Regardless of them already being ruled unconstitutional, they are still out there.


In fact, new legislative bills like the Federal Disaster Housing Stability Act of 2021 are proposing both automatic and potentially never ending eviction bans.


That isn’t exactly making acquiring more rental properties very attractive to most buy and hold investors.


Here’s how you can help them, and keep your business firing on all cylinders too.


Serve Up Performing Rentals

No one wants to buy a non-performing rental with an occupant they may never be able to remove. Yet, the data suggests that the bulk of rental properties are performing well.


Find those with a track record and good tenants, and wholesale those deals instead.


Provide Deeper Discounts To Offset Risk

Investing decisions are all about the balance of risk and reward. If you can help lower your end buyer’s risk, and offer more promise of potential reward it could tip many more buyers in your favor, and lead to a lot more deals with each one.


One way to do this could be to offer deeper discounts to buyers; building in equity, and creating larger spreads for them.


Another option could be 12 to 24 month rental and income guarantees.


Turn Them Onto Smarter Leasing Structures

It is true that aside from Section 8 style government paid housing, the old traditional annual lease is probably dead. It is just far too much risk for any private and individual landlord to take on.


Yet, with a little creativity there may be many innovative leasing options that can avoid this attack on landlords, and help them pull in that cash flow.


This may include entire leases being paid in full in advance, switching to short term rentals, memberships, or even finding other ways to derive income from a property; such as renting it for storage or parking.

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Real Estate Wholesaling: The Number One Most Important Factor For Success

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on Thursday, 11 March 2021
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There is one factor that is by far more important to your success in real estate wholesaling than anything else. Do you know what it is? Do you have it?


It’s true that marketing is incredibly important. Being able to find deals is essential. Knowing your market data and values can make or break you. Yet, there is something far more important and pivotal for your success in real estate wholesaling.


This is truly knowing your customer.


Specifically, knowing your end buyer for your house deals.


Why It Matters

You can’t market well, pick deals to buy well, run the math accurately, systemize or have a predictable deal flow and income unless you know your end buyer customers in depth. You just can’t.


Failing here will cause you to bleed out your budget on all fronts. It will take you far longer than it should to sell properties. You’ll burn contracts and relationships on the buy side. Your reputation will get crushed.


Not to mention the fact that it only takes being stuck with a property or two to sap all of the profits you may be making on other deals. It is extremely risky.


Then, even if you do get lucky a couple of times, failing to really know your customer means that you cannot scale your business and income.


What Does Knowing Your Customer Mean?

So, what does it mean to really know your end buyer customers?


It means knowing as much about them as possible. Intimately and granularly.


You should know your demographic data. At the most basic you should know how many potential target customers you have each month and year. You need to know what their likes and dislikes are, where they hangout online, their preferred ways to communicate, and more.


You need to have absolute clarity on what their real pain points are. What their goals are. Plus, what their ability is to leap this gap with you.


For example, are they buying from you because they desperately need somewhere affordable to live? Or because they need deal flow for their rehabbing and flipping or rental property business? How much can they really afford monthly and as a down payment? What are the fears and limitations holding them back? Is it finding someone to trust, unknown repair issues and costs, or finances?


Ace this, and everything else will fall into place.

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Is Your Real Estate Agent Helping Or Hurting Your Sale?

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on Thursday, 09 February 2017
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Are real estate agents really helping or hurting investors’ efforts to sell homes?

Many property investors and regular homeowners simply aren’t aware of how beneficial or harmful Realtors can be in the mission to sell their properties. How do you know if yours is doing their job? How do you spot the good among the terrible?

The Issues

Just as with investors, not all Realtors are perfect. But, there are great ones out there. They can offer a lot of value to those flipping houses, restructuring rental property portfolios, and searching more homes to buy and wholesale. Those that fail to operate ethically, don’t have the hustle, or simply are not tuned into current trends can really hurt the sellers they represent, and be a major roadblock for buyers.

Unfortunately, some agents still hold out on presenting offers; either to wait for the one which offers them double commission, or because they don’t understand them. Some are just slack at returning inquiries and following up. Others don’t have the motivation and hustle to try and make deals work and make the most out of every lead.

This doesn’t serve anyone well. It can result in properties rotting on the market, owners losing homes or failing to get the most money in a timely manner, and it can choke the pace of the market too.

What to Look for in an Agent

To beat the above issues real estate investors need to select the agents they work with carefully. Don’t just hit Google or go based on who has a lot of yard signs out. Don’t base the choice on years in business either.

Instead, look those you can build a relationship with. Those that put values and service first, those that are hungry and active, and those that can answer questions about quirks in the market or can find out fast.

Test them. Do they answer calls on their properties fast? Do they take offers and try to make them work? Do they know the requirements of local associations, building codes, and mortgage lenders?

Always do a little mystery shopping before selecting an agent to help you. Then if you list with them, do it again. See how well they are serving potential buyers for your property. If they aren’t presenting you offers, responding, or being courteous, you may have a case to fire them and find someone better.

What have you found is most and least important in choosing an agent? Let us know your favorite investor friendly agents around the country on our Facebook page

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding for real estatewholesalers 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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