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5 Ways To Find House Deals Now

by blogger1
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on Tuesday, 10 October 2023
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According to the narrative the mainstream media is selling, house prices are shooting up thanks to a lack of property for sale.


At the same time, common sense, and the data suggests that there is a tremendous amount of financial distress out there.


So, how can you find the houses and do more wholesale real estate deals?


Sure, there are many tools being advertised online for identifying properties and leads virtually. Of course, this may not work as well as it is marketed, and may now be saturated with competition.


Try these ideas instead…


Realtor Yard Signs

It may sound counterintuitive. However, many properties do not sell simply because agents fail to answer their phones or respond to leads.


Try calling on the for sale signs you see. If they answer, you may be able to strike a deal that way. If they don’t, then you can bet the owner is stressed and frustrated, and is looking for another way to get their property sold. Just be mindful of the rules regarding commissions being due.


Old Listings

Brand new listings get all the attention. You’ve probably got alerts to new listings yourself. That’s often not where the real deals are.


When was the last time you scraped older listings on Craigslist for example? Ads that may not be getting any competition. By now the owners may be even far more motivated to strike a deal and offer a discount.


Private Lenders

Private lenders have been incredibly busy putting out money over the past few years. Now many of their borrowers are not paying. Even though there may be equity in properties, and lenders have more than made their money already.


Lenders may foreclose and flip you these deals. Or simply introduce you to their borrowers to work something out.


Blog About It

Social media may be super saturated with cheesy junk, and so many ads that users have become immune to them. Yet, when it comes to homeowners searching for help, they’ll still most likely end up on Google. Which is going to feed them articles, blogs, and websites around their search terms.


Try starting a blog, or reviving and scaling one you’ve already got. Publish some content focused on how to sell your home in a variety of situations, and become the trusted advisor they turn to.


Inherited Property

A grim, but true statistic is that almost 3.5M people die in the US, every year. Based on homeownership rates, more than half of them may own a home at the time they pass away. This alone is a huge pool of properties.


Heirs and loved ones left behind need help. They are often left with a big debt that they cannot carry, and a lot of work. Often they just want to turn those properties into cash as quickly as possible.


However you plan to find your house deals, check out our Fall interest rate deals from 1% for funding your next acquisitions.

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Real Estate Flips To A Buyers’ Market

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on Wednesday, 01 June 2022
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Few saw the change coming this fast. Yet, in just a matter of weeks it appears that the North American real estate market has substantially shifted in favor of buyers.


This is great news for real estate wholesalers. It also means that those who are still stuck holding properties need to move them very fast.


Home Sellers Are Slashing Prices

We’ve fast gone from incredible bidding wars, with even big investment firms proudly paying 50% over market value for properties, to sellers almost competing just as fiercely in slashing their asking prices.


In Boise, Idaho 40% of home sellers have recently reduced their prices. Followed by around 30% in New Orleans, and Cape Coral.


Home Values Are Coming Down

Of course, in turn, sales prices and home values are coming down along with that. Some cities are already reportedly seeing them down 10% to 15%. For example, in Kalamazoo, MI.


Similar trends have been reported in Canada, where the market has also flipped, and recently hot markets like Waterloo are down by 8.5% as of April. With economists expecting them to drop by 20%.


It is true that these are reductions from very lofty highs. If the Fed can manage a soft landing it could just mean a slowing of growth, without an absolute crash.


Though JP Morgan Chase’s CEO just warned that we are facing an imminent financial hurricane.


What It Means For Real Estate Investors

Those still holding rehabs and speculative flips need to exit them fast. Or they face being caught underwater, with dead weight that is dragging them down.


Of course, most experienced investors have been waiting for this moment. They’ve been waiting for asset prices to come down, and the numbers make sense again.


It’s time to get bidding, and scaling. Just at the right figures, which price in the drop. Then wholesale them fast enough not to get caught with any further declines.


Obviously, this is best done by filling pre-orders from other investors who have cash and are ready to buy them immediately once they are under contract.


While capital markets have been flush, and business and mortgage lenders eager to put money to work out there, rising rates, and fear of a contraction could change that.


This makes leveraging transactional funding for quick in and out deals, with low risk an even more appealing option as we look ahead.

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Don’t Get Caught Out By Fake Real Estate Market Data

by blogger1
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on Thursday, 29 October 2020
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Just as there is plenty of fake news in the media around elections and celebrity gossip, there are plenty of misleading real estate market headlines too.


Falling for false market data may not only bankrupt you as a real estate investor, but can really hurt the local market and industry too. Here’s how to avoid that, and ensure you don’t get caught out.


The Danger Of Dead Weight

For wholesalers who are paying cash or using credit lines to buy properties with the hope of reselling, it only takes being stuck with one or two dead weight properties to really mess up your model and finances.


Instead of those deals being resold for lump sum profits in a couple of days, you may end up like all those crusty Craigslist ads that have been trying to sell the same properties for years.


During this time you’ll still be coming out of pocket for property taxes, insurance and have to risk further devaluation on a daily basis. This money has to come from your personal income or savings, or the profits on any other deals you do successfully wholesale. It can quickly eat away the profits on good deals you complete.


Looking at the bigger picture, if wholesalers have swamped a local market with tying up properties they don’t close on, or deadweight properties they are asking too much for, it can send signals to everyone else that the market has stalled. Days on market will appear very long, it could bring down values, and sellers will be more wary about who they contract with.


The Numbers Do Lie

Salespeople like to use numbers, because they appear factual and indisputable. In reality, the numbers lie all the time.


It’s not uncommon to see two contradicting new headlines on the direction on the market on the same day. Sometimes even from the same publication.


Numbers and statistics can be manipulated to tell just about any story the storyteller wants to spin.


Zillow was notorious for poor real estate data. It now appears they have stopped reporting on most statistics. Even the National Association of Realtors went back and restated several years of home sales data after the 2008 crisis became undeniable.


Realtors twist it all the time. With most preferring only to show the optimistic data, and hiding anything that may turn off their clients.


We’ve also recently seen a variety of big claims about new pending sales, home prices, and the traction in the housing market. Some of it may absolutely be true, in some places.


In other cases, few of those pending sales may actually close due to lenders changing their minds, tightening up and being too afraid to lend. While some properties may seem to sell fast, there may been many listings which have been on the market for 24 months or longer.


Perhaps most impactful, asking prices can be completely unrelated to actual closed sales prices and values. If you buy based on the crazy overpriced listings of a few people swinging for a lottery ticket sale, you might find the market thinks you are just as crazy.


How To Avoid A Glitch

The most obvious way to avoid this trap is to dig into the real data yourself. Know your market intimately.


Look at public records, know the neighbors who have actually sold, and have an appraiser you can pick up and call for questions 24/7. Look at how much properties are actually closing at, and any concessions which may impact the true net price and sold comps.


Having alternative exit strategies to avoid being stuck with a property is good. Like being able to offer it as a rent to own.


Savvy real estate wholesalers go even further by securing solid preorders and preselling deals before they even sign the buy side contract. Then they use transactional funding, so that they aren’t trying up any of their own capital in the deal.

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7 Tips For Preparing Properties For A Hurricane

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on Thursday, 07 September 2017
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Hurricanes present a serious threat to lives, business, investments, and properties. Much of this risk can be minimized if investors and property owners are properly prepared. It is always better to err on the side of safety.

Check out these seven quick tips for protecting your properties, personal belongings, and yourself and family…

Watch Evacuation Notices

Evacuation notices cannot be taken lightly. Keep tuned in to advice, and consider evacuating even when it is not mandatory. The key is getting out ahead of the storm. You’ll want to secure your properties, pack up, and head out at least a week before if possible. Otherwise plane tickets will be sold out and prices will be jacked up, as in Miami ahead of Irma. Or roads will be no more than parking lots, hundreds of miles long, with no gas or supplies. By staying you not only put yourself at risk, but your family, emergency workers, and anyone else who has to try to come save you.

Trim and Clear Landscaping

A big percentage of damage to properties is done by trees and debris in yards. Trim landscaping, and make sure anything which can be used as a projectile by the wind is secured.

Board or Shutter Windows

With an increasing number of major storms, which only appear to be getting stronger and setting new records in strength and damage, make sure you cover windows. Don’t rely on promises of strong glass alone. Get them secured early while you can, and while supplies and contractors are available.

Get Sandbags

Much of the damage from hurricanes isn’t the wind, but flood waters from the rain and storm surge. Sand bags can be a huge help in keeping the water at bay.

Turn Off Utilities

You may also want to turn off your main electric breaker and water at your property. This may help the power company get you back on faster after the storm, and prevent more damage and danger.

Move Vehicles

Vehicles can easily be flooded and used as projectiles by the wind too. Progressive notes that even moving them a few feet to higher ground can help. Some local parking garages may offer free storage during storms as well.

Document Condition

Be sure to carry all of your documents with you. This includes; homeowners, flood, windstorm and title insurance, title deeds, and the attorney you will use to get your claim from the insurance company. Take photos and video of your properties before the storm to help document damage and file claims.

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