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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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Wholesaling Houses After Fannie & Freddie

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on Thursday, 13 March 2014
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What’s the best strategy for wholesaling houses after Fannie and Freddie shut their doors?

The liquidation of Fannie Mae and Freddie Mac may not have been noticed or seemed like a big deal for many real estate wholesalers so far, but it could be.

It could make a sizable difference in availability of deals in the short term and who houses can be flipped to in the medium to long term.

Last week’s news of a new bill to officially wind down Fannie Mae and Freddie Mac certainly had a massive impact on the share value of the two mortgage giants. After instantly falling in price by as much as 44% on the news, shares of the giants continued to nose dive with Fannie’s hitting a low of around $3 by March 13th. Who knows; by the time you read these they may already be out for the count.

Many are complaining that this is happening as the mortgage giants are raking in billions in profit. However, the real issue facing property wholesalers is the evaporation of mortgage credit for home buyers.

Between new regulations and the absence of low down payment home loans for regular home buyers and first time home buyers a significant portion of end buyers could be taken out of the game for a while.

The market will certainly be fine and alternative loan programs will be born, but in the meantime flipping houses to retail buyers could be far more difficult, at least unless seller financing is offered.

There may be a big surge in foreclosures and availability of distressed assets as Fannie and Freddie speed up liquidation. But who will these bargains be flipped to?

Fortunately giant equity and hedge funds like Blackstone and Cerberus and their subsidiaries are rolling out more loan products aimed at helping small and medium sized buy and hold real estate investors to tap equity and even acquire and rehab rental homes in bulk and piece by piece.

It is these end buyers that will certainly be most valuable to wholesalers looking for fast turn arounds and lots of them. Using flash funding from Best Transaction Funding wholesalers can ramp up volume quickly and scale their businesses. The key is making contact with those tapping this bulk funding and adding them to lists for instant flips.

What are you doing to build your list?
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Great News For Real Estate Wholesalers - Where The Deals Are...

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on Saturday, 17 August 2013
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The last couple of weeks have seen several rounds of great news for real estate wholesalers…here’s where the deals are at now…

The cracks in the media and Realtor hype are appearing, and it’s time for investors to grab the market by the horns and crank up their deal flow.

Some industry players have been trying to turn some off and distract them from all the deals and profits coming online. They don’t want competition or to share the treasure haul that the market is hiding right now. They want you to believe it is too hard to flip houses in this market and that you should rush to overpay for properties. Don’t fall for it!

The hard data reveals the real situation and where the opportunities are today and will be over the next few months.

Yes home prices are on the rise, but the best days for wholesaling homes are just ahead. Flipping houses works best in a rising home price environment and the mass of off market discounted acquisition opportunities are creating incredible spreads for investors.

According to Inman News and RealtyTrac foreclosures starts were up in 26 states in July 2013, and up 6% on a national basis.

At the same time real estate brokerage Redfin reports bidding wars are actually down in 23 major U.S. markets, allowing for better bargains to be negotiated by wholesalers.

The inventory coming down the pipe is mostly new foreclosures and delinquencies which forward thinking real estate wholesalers can work to tap into early before the competition even gets a look at.

According to the numbers some of the states with the highest foreclosure spikes now include MD, OH, FL, CT and IL.

It’s also important to note that according to RealtyTrac foreclosures are actually back down to historical levels or below in IN, OK, CO, TX and MI.

It’s time to get cracking…

Need some extra inspiration or new strategy to get the edge? Start leveraging transactional funding and go see the ‘Jobs’ movie.
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Real Estate Wholesaling: How to Win Against Multiple Offers

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on Wednesday, 27 March 2013
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It’s a hot time for investing in real estate and there is no question these are not just the optimal conditions for flipping houses, but perhaps the best we have ever or will ever see. Unfortunately, the dramatically improving U.S. housing market is giving many the same idea and competition for homes is heating up.

Nationally foreclosures have fallen some 30% since February 2012 and the National Association of Realtors reports buyer traffic up 40% as of the beginning of 2013, while pending homes sales continue to rise.

This is causing multiple offer situations to rise rapidly from coast to coast. We are no longer just taking about 3 or 4 offers coming in on homes over a period of weeks. Realtors are frequently reporting a dozen of more offers within hours of homes going online on the MLS. In one of the most dramatic cases recently a West Coast real estate investor reported going up against 80 other cash offers and even bidding $15,000 to $20,000 over asking price with little hope of even receiving a counter offer.

So how can investors bid and win in among stiff competition like this?

With at least 30% of all real estate transactions being in cash today it is clearly a disadvantage not to be able to act as a cash buyer in this market. Fortunately using transactional lenders can enable wholesalers to effectively act as cash buyers with flash funding and Proof of Funds letters to back them up.

Sometimes it’s about price, other times it is just matching the seller and their agent’s desired timeline and quirks. Often they want to see higher deposits or fewer contingencies to prove how great a prospective buyer you are or it might just be a matter of spinning your personal story.

Another major part of this issue that many don’t understand is that Realtors often refuse to even present offers unless they are gaining both buying and selling side commissions and are effectively doubling dipping. While this certainly isn’t fair for the seller who is normally unaware, the best tactic for overcoming this is to make more direct Realtor connections and make sure you are always dealing with the listing agent, not a buyers’ agent.

Another major reason for such dramatic bidding wars is often the price range and property type investors are targeting. Their focus is often on the ‘bread and butter’ 3 bedroom, 2 bath single family home that also butts heads with the 30% of the market that is made up of first time home buyers. Perhaps targeting a different price range or property type could yield better deals with less competition.

Note that there are also many areas of the country where foreclosures are still spiking by double and triple digit rates and could offer many more choices and bigger discounts. This includes Washington, Florida, New York and others.

Of course switching acquisition strategies from bidding on publicly marketed properties to targeting off market properties and homeowners directly can also make a world of difference.

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Mobile Marketing for Wholesalers: Foreclosure Searches Up 180%

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on Thursday, 10 January 2013
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Mobile is fast shifting from an advanced trend to an absolute must for serious wholesalers, at least for those serious about doing serious volume and staying in the game for the long run.

New data shows just how important mobile is for real estate investors and where some of the sweet spots are…

The new report ‘Digital House Hunt’ from Google and NAR reveals those who purchased a foreclosure were much more likely to use the web in their searches over other buyers who used the web 90% of the time. Foreclosure related searches grew 180% in the third quarter of 2012 versus just 7% on desktops.

7 out of 10 who actually took action from their real estate searches used local keywords, with the top states for foreclosure searches being Florida, Nevada, Georgia, Arizona and Illinois.

Real estate searches on tablets were up over 300% for the year ending in Sept. 2012. 60% of home buyers who took action after a search did so within 60 days, with 24% acting the same day.

Who’s searching? The largest group was 25-34 year olds followed by 35-44 year olds.

There are many ways to capitalize on mobile marketing for real estate wholesalers from apps to advertising in iPad magazines and video. However, it is critical to dig into the raw data to maximize results and ROI.

For example many might be aware that video is also a growing marketing trend and YouTube is still responsible for the most views, but few probably realize that most home buyers watch videos to check out specific neighborhoods, not for watching testimonials or home tours.

By the end of this year those real estate wholesalers not heavily invested in mobile marketing will be at a severe disadvantage.

What are you doing to incorporate mobile marketing in your real estate business and what have you tried so far?

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5 Factors Affecting Your Success in 2013 & How to Dominate Them

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on Friday, 21 December 2012
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Are you on top of the 5 factors which are going to determine your level of success in real estate investing in 2013?

These 5 elements are what will control the game in the next 12 months, and if you are on top of your game you can crush it and dominate…

1. The Rebound

The U.S. housing market has come a long way in 2012 and is expected to post even better improvements in 2013. We might not be rolling from recovery to boom just yet. It is still an uneven recovery with even the best performing markets having another 30% to go up before hitting the baseline to launch another boom era.

Still, it is time to be aggressive and confident. Don’t speculate but do make big moves based on facts and cycles so that you control the largest percentage of market share you can.

2. Marketing Trends

We’ve all heard and are pretty well aware that mobile marketing is the hot ticket for real estate from here on out.

However, new tests launched by Facebook this week which aim to charge marketers $1 per message sent to anyone outside of an investor’s direct network put another nail in the social networks’ coffin and perhaps Silicon Valley’s startup nation, even if they don’t realize it yet.

So stay on your tech game but don’t count on social platforms for free marketing in 2013.

3. Foreclosures Move into Overdrive

Foreclosure sales are already speeding up in many hot areas on higher profits and prices being achieved by lenders. Expect this to continue during the next 12 months.

Don’t worry there are plenty of distressed properties to be had for the flipping too. It was just revealed that Bank of America alone is holding $64 billion in mortgages which are more than 6 months delinquent and haven’t even received a foreclosure notice yet. That puts far more distressed property out there than any private equity fund or even billionaire Carlos Slim can take down.

However, investors who want to be first in line to get the sweetest discounts on these deals need to be more innovative. Think pooling funds to buy in bulk, taking down properties as non-performing mortgage notes and checking out credit unions and asset managers as sources instead of banks.

4. Foreign Buyer Surge

While foreign buyers and investors have been a sizable force in the real estate market for the last few years we have just had a glimpse of the tip of the iceberg of what is to come in 2013.

The death of old havens like western European capitals, central London, Hong Kong and Canada has placed the U.S. as the top destination for global real estate investment in 2013.

These buyers want protection for wealth but most of all they crave high yields and regular income.

5. Mortgages

Mortgages will sadly remain the missing part of the real estate recovery puzzle for most during 2013. Lenders want to loan and hope to lend more but they are also afraid and hampered by regulations.

So get your transactional funding here for fuel all of your acquisitions and flips and get your deals in front of qualified cash buyers and REITs to smoke the competition and reel in huge revenues in the New Year!
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Flipping Houses: Cashing in on Sandy

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on Wednesday, 31 October 2012
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Hurricane Sandy may have brought devastation but it also brought massive money making opportunities for those flipping houses too…

You can bet private equity giants and hedge fund managers are really wishing they had gotten into flipping real estate instead of turning REOs into rentals now.

Hurricane Sandy has been devastating for the east coast and the tragedy of that shouldn’t be taken lightly but rather than meaning taking advantage of those in trouble, investors can pull in big profits from providing much needed services and helping those in a bind.

There may be many ways to do this but Sandy, as with previous storms has proven that wholesaling houses continues to be the safest and ultimately most profitable real estate investing strategy. In addition to no holding costs or liability from tenant lawsuits, for wholesalers there is no risk of property damage, no hassle of dealing with insurance companies and no fear of being stuck with dead weight properties that drain cash flow.

Hurricane Sandy has potentially damaged hundreds of thousands of properties in the northeast, causing more foreclosures, rendering many homeless and putting other real estate investors who weren’t prepared out of business.

This brings plenty of opportunity for flipping a massive volume of homes in the next few months. There are going to be a lot of ex-homeowners flush with insurance cash needing to buy homes, many entering the pre-foreclosure stage as they are too strapped to pay their mortgages and those who simply can’t afford to secure their homes and face big fines for not doing so and a void left where other wholesalers failed to secure the tools to stay operational in times like these.

Just make sure you do your due diligence before laying out any cash and ensuring that the properties you put under contract can actually be resold.
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Why the News Has the Housing Market all Wrong

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on Tuesday, 02 October 2012
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Why is it that the media and some real estate portals seem to have the housing market all wrong, what’s really going on with inventory and the direction of the market and does it even matter for those flipping houses?

Why is the News and Other Real Estate Investors So Out of touch with the Market?

For a start the media often relies on faulted data for its stories and is also clearly influenced by the bias of an array of different motives. On top of this, while national housing statistics present a (really) rough picture of what trends are on a countrywide level they balance out the disparity in some many different markets.

Publicly available inventory is way down in some regions and foreclosures may even be falling in some zip codes, pushing up home prices. In others quite the opposite may still be true and new waves of foreclosures and masses of distressed properties are causing the ‘average’ home price to slide. So what you may be seeing on the street in your market may really be completely different to an investor somewhere else.

However, the real question real estate investors should be asking is…

“Does it even matter?”

Clearly the direction of the market has proven to mean very little to those flipping houses. It may affect buyer confidence but the last 7 years have proven that big money can be made from wholesaling real estate, even in rapidly declining markets.

What about foreclosures? Investors must remember that foreclosures are just one part of inventory. How do you think so many millions were made in the last boom when foreclosures were virtually unheard of and were essentially non-existent?

3 Strategies for Beating the Market

1. Where You Look for Properties

Tight inventory can make it feel tougher but maybe you just aren’t looking at it in the right way? Tight inventory = rapidly appreciating home prices.

2. Diversify

Contemplate how can you get ahead of competition or find other sources of different types of distressed property besides those being foreclosed on for not paying their mortgages.

3. Create Your Own Market

Truly talented and savvy investors know how to create a market for their product, whatever it is.

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How to Make Winning Offers on Foreclosures

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on Monday, 23 April 2012
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The president of the Florida Realtors association says there are now 3 to 4 offers on every foreclosure being listed. So how can you compete and win more offers in order to save yourself time, keep your income consistent and keep the profits stacking up?

Be Faster

Half the battle in winning contracts on foreclosures is speed. Often the first one with a reasonable offer wins the deal. Have searches set up to so that you are consistently getting fresh new deals in your inbox every morning. More importantly, build relationships with the best wholesalers so that they call you immediately when they have a new deal in the works and will give you the first shot at it.

Make Bigger Deposits

Sellers and their agents love big earnest money deposits. It lets them know you are serious (while of course securing their commissions) and dramatically reduces the odds of you backing out. Of course most investors constantly strive to make the smallest possible deposits to reduce their own risks. How about meeting in the middle? What about offering a second deposit within a few days? This allows you to do your due diligence and get out if the deal isn’t what you hoped for while minimizing the downside and making your offer more attractive.

Fewer Contingencies

Needing to make ‘As-Is’ offers is a given when things are moving this quickly. However, some banks are refusing to allow any contingencies for backing out at all and even refusing to permit inspections. While it can certainly be foolish to buy any property without proper inspections, the fewer demands and contingencies you try to sneak in, the higher your odds of landing the deal. If you are flipping houses, you need to prepare your end buyers to buy from you in this manner too.

Knowing your market inside and out will go a long way towards helping you make better offers with fewer contingencies. Focus on a smaller farm area, drive it regularly and get familiar with every property so you instantly know a good foreclosure deal when you see one and have a good idea of its condition.

Make Cash Offers

Cash is still king. Your offers are much more likely to be accepted if they are cash offers than relying on you obtaining any financing. However, making ‘cash offers’ when you really don’t have cash will only cause you problems. The alternative is utilizing transactional funding for quick cash closings and obtaining a proof of funds letter from your transactional lender to provide with your offer.

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5 Ways to Pull in Crowds of Home Buyers in an Hour

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on Wednesday, 18 April 2012
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Looking for a way to generate more buyer leads to flip your properties to which can also maximize the use of your time and marketing dollars?

Check out the following 5 ideas successfully being used by other real estate investors for reaching dozens and even hundreds of prospective buyers at the same time…

1. Start Your Own Investor Group

Self-appointed ‘gurus’ who have already set up their own real estate investing groups and monthly networking events enjoy many benefits. The perceived expertise make positioning and selling your flips easier than ever while being able to enjoy cherry picking new members’ best deals. You can easily host your own at a local restaurant or hotel and you will find local real estate pros and new investors plenty excited for a new opportunity to network.

2. Foreclosure Tours

Foreclosure tours have been a big hit with some investors easily charging buyers for the ride and signing deals on the road. Can’t find a creative way to get your own bus or get enough upfront money to rent one then making it a driving tour, while pulling in more attendees on the day by incorporating social platforms like Facebook, foursquare and Pinterest.

3. Offer Investment, Foreclosure Prevention & Home Buyer Seminars

Put on these seminars at local educational facilities, real estate licensing schools or even at a broker or title company’s office. Given how hot these subjects are at the moment investors should also be able to capitalize on local press opportunities.

4. Investor & Foreclosure Conventions

Take networking groups and seminars to the next level by putting on a larger scale convention which can include classes on buying, investing and short sales. Use local pros as sponsors and you may even find the city willing to pitch in if it means revitalizing neighborhoods and more sales which increase tax revenues.

5. Webinars

Face-to-face interaction and public speaking obviously isn’t for everyone but that doesn’t mean you can’t capitalize on events like these. Webinars offer a lower cost approach but still mean being able to reach and pitch hundreds of real estate prospects at once.
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How to Use Transactional Funding to Flip More Houses

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on Monday, 26 March 2012
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The last two months have seen an incredible rise in the amount of foreclosures being filed and the number of actual repossessions being followed through on. Add to this 2 million more foreclosures expected in 2012 and the real problem for most real estate investors is not a lack of discounted homes available but how to finance them.

It is no secret that mortgage financing has become incredibly tough to get these days. Besides a slew of new regulations banks are still afraid to lend and are being more cautious than ever about the loans they take on. They want zero risks. Even though there has been a recent spike in activity among subprime securities new rules make it virtually impossible for true subprime lending or exotic mortgages to make a big come back anytime soon. So where should real estate investors be turn for funding for their flips?

Sadly ‘hard money’ lenders are no longer anywhere near as easy to work with as they once were. Besides tons of equity in a property they now want to check credit, income, assets and require investors to have a proven track record before they will lend to them. Then they still want to charge ridiculously high double digit rates and points.

Fortunately a new option has emerged. Transactional funding has been created as the perfect alternative for investors flipping houses. It means no more jumping through hoops and far faster funding of deals for shorter cash cycles. What are the advantages of using transactional funding?

  • No appraisal required
  • No income verification
  • No asset verification
  • No employment needed
  • Fast closings
  • No pre-payment penalties
  • Less paper work

Think it sounds too good to be true? What’s the catch?

Thousands of savvy real estate investors are using this type of flash funding to finance their deals every week. Though of course there is one catch. That is investors must also have an end buyer lined up who is qualified for a loan or has the cash to complete the transaction.

This really isn’t that difficult at all, especially as smart investors know they should have an exit strategy planned before they buy a property anyway.

These buyers can range from those looking for a new residence or second home to buy and hold investors who will rehab and rent them out. With a little regular networking and a good Internet marketing campaign for driving buyers to your opt-in list you too should be able to build a good sized list of potential buyers a lot faster than you think.

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The Most Cost Effective Way To Find More Properties

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on Tuesday, 04 October 2011
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There are all types of complicated Internet marketing strategies and sales funnels that you can set up today but perhaps the most cost effective of all for finding more wholesale inventory has nothing to do with the world wide web at all.

There are distressed homes to be grabbed up all around us. In addition to bank owned REOs and the properties being peddled by other wholesalers there are thousands of homeowners becoming delinquent on their mortgages as well as many homes needing to be sold quickly due to divorce and probate.

Of course exactly how many homes are in foreclosure or are in a distressed state in your area can vary, but taking a look at some of the numbers from data compiler Realty Trac it is likely an enormous figure. In August alone 1 in every 266 homes in Lee County, Florida received a foreclosure notice. In many parts of Los Angeles this rate is around 1 in every 100 properties. In Las Vegas, NV some zip codes are saw 1 in 19 or even more foreclosure filings in August this this. This of course doesn’t count all of those who have already fallen into default in the last year or two and who still need to sell their homes.

This means that you must certainly personally know quite a few people who need to sell. More importantly perhaps, it means that everyone you know also knows a number of people in need of help. Just through personal contacts alone you should easily be able to find more than enough inventory to keep you busy flipping homes for quite a while. The question is are you reaching out to them and do they know that you can help? If you simply traded contact details with everyone you ever come into contact with and told them what you do, you should have more than enough homes to make millions.
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Real Estate Investor Makes $1 Million Dollars A Month With Transactional Funding

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on Thursday, 23 June 2011
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Looking for a little inspiration to take your real estate investing to the next level and want to know how the pros are really able to make so much?
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