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Top Choices for Financing Your Flips

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on Thursday, 03 August 2017
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Top Choices for Financing Your Flips

Short-term real estate investors have to navigate a number of different challenges when it comes to fix and flip funding. Capital is necessary to purchase the home, but it's also necessary for renovations. When it's time to buy a property, fix it up and sell it for a profit, you need to know where to get your funding from.

Using a Fix and Flip Loan

One of the major sources of funding for flips is a fix and flip loan. These come in a variety of forms including:

Hard Money Loans - These are great for all flippers needing quick money, but expensive.

Home Equity Line of Credit - Works well for flippers using an owner-occupied home as collateral.

Cash Out Refinance - A great way to use equity to invest in a new property.

Long-Term Bank Loans - A good choice for buy-and-hold investors, but not great for short-term fix and flip projects

While a loan may seem like the obvious answer, it's not always easy to get the money you need from a bank or conventional mortgage lender.

Partners

Another option is to partner with someone or with a group willing to fund the projects. Sometimes, you can partner with your attorney, doctor or even an investor in the stock market for the funding you need. However, this usually means you will have to split the profits, but it can get you the funding you need to buy and renovate the property.

Transactional Funding

A shorter-term loan used by fix and flip investors, transactional funding provides the necessary funding to acquire and quickly wholesale a property. The loan is usually for hours or days and is one of the easiest to obtain.  Transactional lenders will usually fund 100% of the acquisition costs, and closing costs. No credit, appraisal or asset verification may be needed.

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Real Estate Financing Trends

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What’s trending in the real estate financing space now?

Here’s what’s changing in the market as we roll through the second quarter, and into the second half of 2017…

Rising Loan Volumes

The Mortgage Bankers Association, analysts, and individual lenders are expecting loan volumes to rise this year. Commercial real estate loans are predicted to hit new highs in 2017 and 2018. That’s following RealtyTrac’s annual house flipping report which shows far more flippers are now using financing. Buy and hold real estate is still popular too, yet many rental property investors have most of their capital tied up in equity and will need to use leverage to expand their portfolios this year.

Higher LTV Financing

Lenders are expanding loan programs with new higher LTV options. In addition to 100% transactional funding, VA and USDA loans, private lenders and rehab lenders are also moving closer to offering 100% financing for fixing and flipping houses and small multifamily properties.

Declining Credit Score Requirements

Various efforts are being made to reduce credit scores used in underwriting. How much relief this provides to investors will depend on how front line mortgage originators adopt them. Many are still being far more stringent than the secondary market demands.

True Stated Income Loans

Alternative documentation loans have been on the fringes of the market for a while. Now we are finally seeing more lenders offer stated income loans for investors that don’t require tax returns, or even bank statements.

Equity Sharing Loans

Lenders are bullish on the market continuing to grow. More are wanting a piece of that rising equity, in addition to interest and origination fees.

JVs

Savvy investors and lenders are increasingly partnering up. This can be a great strategy for expanding, while minimizing risk, increasing diversification, and gaining access to more lucrative investments.

 

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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4 Trending Real Estate Investment Strategies In 2017

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What real estate investment strategies are trending this year?

The market is changing. Most housing markets are becoming more expensive, interest rates are going up, and many investors are switching up their strategies. So, what’s trending now?

1. Reverse Wholesaling

For those seeking low risk investing, and low capital outlays, reverse wholesaling can be the perfect REI strategy. Instead of finding deals, and then trying to line up funding and marketing for buyers, reverse wholesalers find the buyers first. Then with transactional funding they can turn deals around in a matter of hours. They know their exit before they get in.

2. International Investing

There is set to be a significant amount of cross-border investing in 2017. The majority of global investors surveyed say they plan to increase their investment in American real estate this year. That will account for a sizable percentage of the $1.7T in capital these investors have to put to work this year. At the same time many US based investors may again begin investing offshore. Among this group are those looking to diversify their buy and hold portfolios, those hedging against and American real estate downturn, and those looking for less expensive assets with better cash flow.

3. New Construction

In many areas it has become cheaper and more profitable to build new rather than acquire exiting distressed properties. Some are engaging in gut rehabs of older properties or are expanding with additional square footage. Others are building spec homes to flip, or fourplexes to rent out for cash flow.

4. Partnerships

With many new investors trying to get into the market, and experienced investors looking to diversify and spread risk of any local downturns, more investors are partnering up. Real estate crowdfunding is one way to do this. Others are teaming up with a few peers to take on rentals, and some lenders are offering JV opportunities which provide 100% financing and equity sharing.

How will you invest this year?

 

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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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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Where To Find The Money To Flip Houses In 2017

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Where can real estate investors find the money to flip houses this year?

The US real estate market is surging again. Home sales hit a new 10 year record in January 2017 according to NAR and Inman. Yet, it still takes money to make money. So, where can investors find the capital to get started, expand, and make the most of the opportunities?

Lines of Credit & Personal Loans

Despite all of the gurus proclaiming the ability to flip houses with no money and no credit, investors will find they run into expenses. They may find 100% financing for property deals, but there is still due diligence, gas money, and marketing. Personal or small business loans and lines of credit can provide essential working capital, and the flexibility to use it for everything from launching a real estate startup to rehabbing homes. Do expect lenders to demand a reasonable credit score, and normally an existing LLC or business entity to have already been set up for those seeking commercial funding.

Blanket Mortgages

For those who already own portfolios of income properties free and clear, or with significant equity a blanket mortgage can help. These mortgage loans can be used to leverage equity from part or all of a portfolio to bridge out and acquire more property. It provides liquidity to act as a cash buyer, with the simplicity of one set of loan documents.

Commercial Conduit Lenders

A new breed of mortgage brokers and conduits are setting up shop, and are aggressively marketing themselves to investors. They may offer lines of credit, blanket loans, and short-term fixed rate mortgages for rehabbing properties. Many now offer stated income loans. Most still expect significant skin in the game from investors, and often want to see a recent track record of successful acquisitions and exits.

Transactional Funding

Transactional funding lenders provide short-term funding for real estate wholesalers. This is typically 100% financing for back to back house flips. Often no appraisals, credit, or income verification is required. It’s fast and easy to get, and rates can be lower than hard money.

 

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 Valentine’s Day Gift Ideas For Property Wholesalers

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on Thursday, 26 January 2017
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Need some cool Valentine’s Day gift ideas for a property wholesaler in your life?

Check out the new list for 2017…

Thank You Cards

If you are in real estate the chances are that you have a few wholesalers which play a role in your business. They rarely get the appreciation they deserve. Whether you are an agent helping them move inventory, a rehabber buying it, or a partner or family member, a thoughtful thank you card can be really appreciated.

Leads

There is nothing that real estate wholesalers love and need more than leads. It probably won’t cost you a dime either. Yet, can be hugely valuable for the recipient. Know anyone looking to buy or sell property, or have seen some vacant homes around the neighborhood which could use a new buyer? Get the info and pass it on.

Drones

Drones are still in. They’ll help your wholesaler create the best photography and marketing presentations so they can flip houses faster.

A Stylist

Real estate wholesalers are typically not famous for their fashion. Yet, branding is becoming more and more important. Take them on a shopping spree, or get them a stylist from a boutique firm like Ensemble who can help them create the perfect wardrobe.

Education

You can never learn too much. There is always something more to learn and master in real estate. Help your wholesalers with the gift of new learning courses or tickets to an industry event.

Vacations

Valentine’s is the ideal time for romantic getaways. Send your favorite wholesaler off on a trip so that they can recharge and come back on top of their game. Mexico, Florida, and the Dominican Republic are all top choices this season.

Funding

You just can’t have access to too much cash in this business. Turn your wholesaler on to new sources of funding for their deals. It could be connecting them with a private lender, giving them some capital to invest for you, or introducing them to transactional lenders.

 

Authored by BestTransactionFunding.com - the BEST source of transactional funding for real estate wholesalers. Log on and get your free Proof of Funds Letter from us today!

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How To Win In Trump’s New Era Of Real Estate Lending

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What tweaks might real estate investors want to make as the Trump administration gets to work on changing the fabric of our lending landscape?

Last week we discussed the acquisition side of wholesaling real estate in the wake of the Trump win. Despite the claims of many celebrities and other residents that they would be selling and looking for homes in countries, and foreign immigration departments reporting up to a 2,300% surge Americans searching for immigration help abroad, not everyone believes we’ll see that many new motivated sellers hit the market. However, being non-political and remaining objective, everyone in real estate ought to be analyzing the new landscape and making appropriate adjustments to position themselves to benefit. One of the other big media stories to come out of the election is how Trump plans to shake up the finance and lending business. So what might that mean for you?

For know all we can go based on is what Trump says he will do. We know what he says, but also we know there will be challenges to that, and any tangible changes may take time. Still, highly respected financial mind, and hedge fund chairman Ray Dalio says it is prudent to keep an eye out for changes. Specifically via LinkedIn he says he expects to see; aggressively stimulative fiscal policy, high inflation, and increased US growth.

Per Trump’s transition website the president elect lays out plans for blocking new regulations, undoing the Dodd-Frank Act, investing hundreds of billions in infrastructure, and lowering taxes. Much of these plan and the role of the new finance team is to spur funding for small businesses and mortgage borrowers.

So while transactional funding may still be the best finance tool for flipping and wholesaling houses fast, with little risk, investors may want to get ahead of the curve with their exit strategies. A period of higher interest rates may entice some previous cash buyers into parking their money in high yielding accounts, with less work than real estate. At the same time expanded access to more money and credit for investing and buying homes, and the retirement of the Dodd-Frank Act could create a new generation or type of end buyer for investors. New home buyers, millennial investors, and investors who may turn around and seller finance their purchases instead of renting them. It’s worth keeping this in mind as investors begin to roll out their real estate marketing efforts for 2017.

Ultimately; anything can happen. Yet, savvy investors will equip themselves with the data and market intel available and work to get ahead of their competition in marketing to the best prospects before anyone else.

Love or hate the new direction the country is headed in, we’d love to hear your feedback and predictions on what’s next for the real estate and lending landscape. Just shoot us an email or let us know on Facebook...

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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What Types of Properties Can I Use Transactional Funding For?

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on Thursday, 06 October 2016
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Which types of properties and real estate deals can benefit from using transactional funding?

As the rest of the real estate world and lenders and banks began collapsing around 2008 transactional funding finally became available to the real estate investor community at scale. Transactional lenders, private lenders, and big funds provided essential liquidity and credit to keep the market alive, and rebounding.

More lenders have now returned to the market, and new conduits are popping up with new twists on asset based lending in order to try to keep fund and bank money working. With all these distractions some investors may not have tried the advantages of transactional funding yet, or may not be aware of how sources like Best Transaction Funding can boost their business in the current environment and make more deals possible. So why use this type of funding? How can you use it?

Property Types Your Transactional Lender May Fund:

  • Single family homes
  • Condos
  • Multifamily properties
  • Commercial real estate including; mixed use properties, hospitality, retail, and office
  • Land and lots

Types of Deals Your Transactional Funding Source May Finance:

Transactional lenders surged in demand when the market was over bloated with REOs and short sales. Yet, there are many, many transactions and scenarios in which they may be used right now.

This may include:

  • Vacant properties
  • Banked owned homes
  • MLS listings
  • Hurricane damaged properties
  • Fire damaged homes
  • Wholesale deals and reverse wholesale deals
  • You lender may even fund mortgage notes

Advantages of Using Transactional Funding:

Transactional funding offers many obvious benefits such as 100% financing, no appraisal or credit score requirements, and great speed.

This, and instant POF letters can all help real estate investors make better offers and be better positioned to compete for acquisitions. It also means being able to take on much bigger deals, regardless of your cash on hand. Some may want to begin using this financing tool much more frequently to leverage lower risk real estate investment strategies as the market begins to shift.

How will you use it?

 

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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4 Ways Property Wholesalers Can Help Their End Buyers Be Successful

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The more property wholesalers help their end buyers be successful, the more they will be successful themselves.

Wholesalers who are serious about succeeding will proactively look for ways to help their end buyer customers. The more profitable and efficient they are, the more homes you can sell them, the more loyalty and trust you will build, and the more you’ll enjoy what you do.

So how do you help your rehabbers and landlords who are buying your properties?

Pile on the Referrals

As a true wholesaler you may not be interested in retail buyers, or getting involved in renting or rehabbing at all. Yet, chances are you’ll run into plenty of these leads every week. Pass them forward.

This can include renters, Realtors, contractors, retail home buyers, and buy and hold investors looking for rentals, as well as lenders offering long term financing and rehab cash.

Provide Better Intel, Earlier

What slows most rehabbers down the most? Evaluating properties and getting the work complete. So give them a better head start. When you can get them access to the property in advance. When you can’t provide more detailed information, repair estimates, repair needs, etc. If you let them know what deals you may have coming up, even before you are ready to close on the B to C transaction they can be sure to have their financing and crews lined up too.

Share Marketing Tips

What is the biggest sticking point for more end buyers? It’s getting that property resold or rented so they can bring cash in and buy more inventory from you. Help them with that. It is only to your benefit. According to RealtyTrac flip times are at a new record high of over 6 months! That’s crazy. Start a real estate blog and share marketing tips to help them move their deals faster. Share tips you find via social media and email too. They’ll appreciate it, and you might generate more end buyer leads in the process.

Be Consistent

Stay consistent with your inventory conveyor belt, the quality and accuracy of your deals, the match for your end buyers, and the frequency. If they can rely on you to have the good deals when they want them then they will keep coming back.

 

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

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Transactional Funding, Wholesaling Becoming Critical as Market Shifts

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Property wholesaling and transactional funding are about to play a far more vital role in the finances of thousands as the US real estate market shifts…

The head of the world’s largest real estate brokerage, Keller Williams, recently spoke out warning that the outlook for the property market isn’t as rosy as it has been. This follows right on the heels of warnings of softening in the hospitality market as NYC’s One57 hotel swirls in rumors of efforts to sell. In reality we don’t know when a new correction will hit, how deep it will be, or how long it will last. Most agents and investors, as well as consumers won’t recognize it until we are deep, deep, into the correction. It may already be in play, or it may not hit for another decade. Regardless; it pays to be ahead of the curve.

When the shift does hit some will be changing strategies, and direction. Some will try investing overseas before those markets change, others will head back into old fields and careers, etc. Of course US real estate has proven to best for the long run. But not everyone has the guts and finances to hold during softer years. But you’ve got to make money – so what do you do?

Wholesaling houses to those that can rehab or hold as rentals can be the ideal way to augment your income and pick up the slack from any other areas. This can be full time or casually as you come across deals. The beautiful thing about wholesaling real estate is it doesn’t matter what direction the market is heading in. Lock in the spreads and right terms, and the buyers will come.

Regardless of how much cash you have or don’t, transactional funding provides the fuel to do unlimited deals and keep your cash rolling in, and the ability to protect what you’ve built. If you haven’t been wholesaling this is certainly the time to be learning about it, and building your network and brand in this space. That is if you want to survive and thrive in the next couple of decades…

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Top Banker Says Don’t Put New Money Into Stocks

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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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Brexit Could Bring Great Boost For U.S. Real Estate

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on Thursday, 30 June 2016
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The British vote to leave the European Union, aka the ‘Brexit’ could prove to be a great thing for the US real estate market.

The Brexit has been big news for days. Most notably because of its massive impact on stock markets. Stocks have plunged in the wake of the Brexit and the economic uncertainty it has brought to the world. Yet, the Brexit could also become a catalyst for a new surge in US property investment, appreciation, and performance.

Stocks have been pummeled since the beginning of 2016. That has only been compounded by the fallout of the British vote. Many will be looking at their statements this week realizing they are way down, and may now be far behind on their income and retirement goals. If you are down 50% in the stock market you’ll need to double what you have to get back to par! Few believe that is likely over the years ahead.

Real estate remains about the only reliable investment for preserving wealth, appealing returns, and consistent passive income.

For many real estate investment is the only way to get ahead and back on track reliably. Those with funds need to get their capital working hard. Those without the cash may find real estate and its agile options like wholesaling and using transactional funding the best option for generating lump sums fast.

Of course not everyone will make the leap into real estate or restructure their portfolios fast enough. That, and the ensuing availability of property deals will create even better opportunities for investors.

The Brexit also positions US as a great option versus London, Paris, and Toronto whose property markets may be hit by the economic turmoil. Look for who can serve as they try to recover from this hit to their portfolios and as they seek safety for their nest eggs and you’ll find your own finances grow quickly.

 

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.

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3 Ways To Legally Wholesale Houses In 2016

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on Thursday, 23 June 2016
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How can real estate investors still legally wholesale houses in 2016?

There is a lot of confusion and misinformation out there. There are many detractors who don’t want competition from wholesalers. They want those deals for themselves, or they really don’t understand the law. Or some have seen wholesaling done the wrong way or have read outdated materials and think that is the way all wholesaling is done. States have enacted various laws and regulations to protect the market, guard their streams of income, and keep consumers safe. But that doesn’t mean that true wholesaling is illegal.

Always check with an investor friendly local title company or real estate attorney on the finer points of your house flipping strategy. But definitely consider one of these three tactics which are legal in most markets…

Assign Your Contract

Assigning your purchase contract to another buyer is a streamlined way to make money on the house deals you can negotiate. There are many perks to this strategy including speed, avoiding closing costs which can eat profit, and more. In many areas this is not only legal, but expected. Check your local real estate contracts. Many Realtor and attorney contracts include a clause for assignment of the contract as standard.

Buy and Then Market for Sale

One of the big issues with wholesaling is marketing properties. There are many regulations on not marketing what you don’t own, unless you have a real estate license. However, you can absolutely publicly market and sell properties you do own. So if you’ve got a great deal use your cash or hard money loans and buy them. Then market them for sale and find an end buyer. Whether you fix and flip, or just straight wholesale from there is up to you. Once you own it you can unleash all the marketing you want from signs to Google ads, to listing it on the MLS with an agent.

Wet Back to Back Closings

Some types of ‘flips’ and wholesale structures have certainly been illegal in some jurisdictions for a while. This might include publicly marketing what you don’t own, as well as simultaneous dry closings where you aren’t funding your initial transaction first. However, by leveraging transactional funding and wet closing on the first, and then closing on your resale, this is completely legal, especially if you have only promoted the opportunity privately to your lists. That exit can occur any time after your first closing. Typically done in 1-3 days.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of ransactional 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.

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4 VIP Factors To Check Before Partnering Up In Real Estate

by blogger1
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on Thursday, 26 May 2016
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What is most important when selecting a business or strategic partner in real estate?

Partnering up in real estate is essential, if not at least incredibly powerful. There are many forms of real estate partnerships today. It can be a mentor and new investor, investing in a REIT or real estate crowdfunding offering, co-founders launching a business together, borrowing or loaning capital, or collaborating with another related business to refer clients.

Done well a partnership can make all the difference in success, and speed in reaching goals. Executed poorly it can be completely disastrous. So what do you need to know before getting involved with a partnership?

Check these four boxes:

Shared Values

Ignore the money and ego promises for a moment and really investigate whether you share the same values. If you don’t, none of the potential upsides will matter much. You will end up working against each other. In the medium to long run that could become far more costly and damaging to your reputation than any potential benefit.

Shared Risk

Billionaire real estate investor Sam Zell defines a true partner as someone who equally shares risk with you. So what are you risking? What are your potential partners risking? This doesn’t have to be the same thing on either side, but both should have a vested interest in making this partnership work.

Clean & Clear Exit Strategy

People change, companies change, plans change, and goals change. How are you going to part when it comes time to dissolve the partnership? Do not make the mistake of leaving this decision and strategy for later. That is guaranteed not to be fun or profitable. Create a clear path for going your own ways. Put it in writing.

Customer Service

Your success and reputation in the real estate world depend on service. You may be great at service, but is your potential partner? How do they treat people? How great is their team at customer service? Is this even a priority for them? Don’t just take their word for it. Check reviews, ask others, and test them out as a mystery shopper.

Have any other criteria you use when selecting partners? Have you run into challenges with partners in the past which could have been overcome by implementing these checks? Let us know…

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

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Introducing HomeNotes - Record notes and home photos on your iPhone or iPad

by press
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on Friday, 06 May 2016
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The perfect home buyer app that lets you record notes and pictures as you tour a property. Review and share your reports with others from your iOS device or computer.


- FEATURES -

Use standard room names or add your own custom names

Pictures can be loaded as you tour the property or loaded later

Share your reports with friends, family, or clients

Pre-filled valuation spreadsheets (mortgage calculator, ROI)

Agent version allows agents to view their clients’ activity

Quick 4-star rating

Access all your property reports from iPhone, iPad or computer



HomeNotes is free for the first 10 properties.

Pro Version with unlimited properties is a $4.99 / month subscription.

Subscribe now to HomeNotes and get $2 off the first month with code "BEST"!



 

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Make More Money Doing Less Real Estate Deals This Year

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on Thursday, 05 May 2016
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Is focusing on fewer deals actually the key to making more money in real estate this year?

Real estate investors, agents, and other professionals often rush in and try to ramp up as much volume as they can. They perceive volume as the path to more money, and more freedom. But that’s not always the reality. In fact; it frequently ends up delivering the opposite results.

Even when you look at massive giants like Zillow and Airbnb, they often just post bigger annual losses. That’s not to say volume and market share can’t one day turn into profit. But common sense says to build a model you can scale, not to create a big business and then hope you can make money from it.

Going after volume first can often just mean being busier. It can mean being busy hiring, training, managing, putting out fires, and sometimes for less money. Flipping more houses is great, but the focus should absolutely be on profit.

Ask yourself what’s better; doing one wholesale deal and making $100k this month, or trying to do 10 rehabs for $10k each this month? Which will give you more of what you really want?

Take a look at the deals you’ve done over the last year; which are the most profitable top 20%? What’s different about those deals, and what do they have in common? How can you do more of those and less of the bottom 80%?

Your time is literally priceless. Don’t waste it. Get the most return on your time that you can. When you do that you’ll have the freedom to do more volume with deals that have even better profit margins, but you’ll be able to afford to take time off for the things that are even more important.

Some ways to get a better ROI on your time may include; delegating more and micromanaging less, streamlining your financing strategy, wholesaling versus rehabbing or renting real estate.

Build in more profit by slashing your turn times on deals, negotiating better rates with vendors or paying them more to take on more responsibility, building relationships with good buyers that won’t nickel and dime you on deals, and empowering any team members you have to make decisions faster based on a good system.

Net profit or volume – which is your goal this year?

 

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.

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Do Your Friends Think You Are Crazy for Investing in Real Estate?

by blogger1
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on Wednesday, 27 April 2016
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One of the top concerns and challenges for new real estate investors is when friends and family members dismiss their plans. Why do they do that? Are they right or wrong? How should you handle it?

Why Your Best Friends Become Your Biggest Haters

This certainly isn’t always the case. It really depends on who you have been surrounding yourself with. But it can happen no matter what type of circle you move in; from barely paying the bills in a blue collar neighborhood to being a highly successful brain or plastic surgeon.

In some cases it is just ignorance. They don’t get it. And that’s okay. You don’t have to try and convince them. This is about you, your family, your finances, and your future. When they see the results in your life they can decide if it’s for them or not.

In other cases people may be afraid that you’ll ditch them and change their comfortable status quo. Surprisingly few people will really be pleased if you strike it rich in real estate. The opposite is true too. Material friends that only care about perception might not get moving to a smarter and more sustainable financial plan. One day they’ll regret it. Maybe you can help them out then.

The Big Question

The big and most pressing question for most new real estate investors is then “should I just get new friends?”

The answer for many maybe “yes!”

You don’t have to ditch them. But you will want to spend most of your time around positive people that will help you grow, rather than people who will hold you back. Of course that can be really difficult if your biggest detractors are your spouse, and other immediate family members.

A better question is do you want to keep staying where these friends are, and heading where they are really heading? Or do you want to be headed where the real elite are going?

Maybe thought leaders and major real estate investors like Warren Buffett, Mark Zuckerberg, and Richard Branson might be better friend choices.

Learning to Take Constructive Criticism on the Chin

The above certainly doesn’t mean that none of your current circle’s concerns are valid. Some inspired new investors can come up with some pretty wild ideas. That’s even true of those that have attended seminars, read outdated books, and got their education from online real estate forums.

Just learn to discern what constructive, helpful criticism out of love is, and what is just foolishness and envy.

There are risks to real estate, and any investment. But there are solutions to minimize those risks too. That may include insurance, LLCs, having a good attorney on retainer, and using 100% transactional funding (other people’s money) to fund your first few wholesale deals.

Most people might not get it, and that’s okay. Most people aren’t going to end up living the lives they really want. Real estate investment is a power tool to financial and lifestyle success – if you do it right. And there are plenty of great new positive people to meet along the way.

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.

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4 Types of Real Estate Funding You’ll Love to Have in 2016

by blogger1
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on Thursday, 31 March 2016
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There is more than one way to fund your real estate deals this year…

It is great to master a system and model for funding and flipping properties. Of course we all know that this business is constantly influx, and that every deal is unique, and can have special quirks. In order to stay consistent in deal flow, income, real estate marketing ROI, and to get the most out of every lead and contact, it pays to have a few different funding strategies and capabilities. That way you can stay agile and keep deals alive when curve balls come, and find a way to get every deal done, even if it isn’t your main MO.

Put these types of funding in your pocket this year, do more deals, and stay on top…

Transactional Funding

Grab this dough for a day and enjoy flash funding your real estate flips with low risk, less hoops, and for big profits. Obtaining transactional funding is ridiculously easy for those looking to wholesale and flip houses in 1-3 days. Check out just how easy it is here.

Hard Money

Some properties just aren’t ready to be flipped in 3 days. Perhaps there are necessary repairs to make, or your buyers may need a little more time to juggle their capital and close. There may even be more profit in taking the property to better performance over 6 to 24 months, and then reselling. This is when hard money can be incredibly powerful. It offer ease of funding, but with longer terms, even on properties other lenders won’t finance.

Working Capital & Lines of Credit

Real estate projects notoriously frequently cost more than expected, or funds get held up for a few days or weeks longer than expected. It is critical for real estate investors to stay liquid in order to pay their bills and team, to keep landing new deals and keep the pipeline full, as well as to consistently push out marketing to attract new leads. PayPal, banks, alternative lenders, and others now provide very easy access to working capital and lines of credit to bridge this gap. The key is putting this in place before you really need it.

Joint Venture Capital

Sometimes alternative cash sources are necessary. It may be a few thousand dollars floated to cover closing costs or minor repairs, or it may be partnering up to gain a larger sum to take down a big opportunity you just can’t pass up. Savvy investors all the way up to Warren Buffett and Berkshire Hathaway embrace this type of deal. It could come friends and family, local private money investors you meet at investor groups, or even from real estate crowdfunding portals. Constantly grow your access and knowledge of these funding sources so you are prepared in advance.

 

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.

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