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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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Can Transactional Funding & Real Estate Crowdfunding Benefit Each Other?

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on Wednesday, 18 May 2016
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Can transactional funding lenders and crowdfunding campaigns be used together for even greater results?

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

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

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

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

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

 

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

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

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

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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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Boost Your Real Estate Business On #WorldGuerrillaMarketingDay

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on Thursday, 29 October 2015
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How will you super-charge your real estate business on World Guerrilla Marketing Day?

Monday November 2nd is World Guerrilla Marketing Day!

This new power productivity day introduced by Direct Marketing Hall of Fame member Seth Godin is the perfect opportunity for real estate entrepreneurs and investors to really kick-start and catapult their businesses and incomes forward.

Guerrilla marketing is ideal for real estate, and especially real estate wholesalers. It’s all about finding ninja style tactics to boost your business. It’s about gaining more results with less money. About resourcefulness, and making things happen. But as Seth and Jay Levinson remind us; it’s also about being generous. Gaining people’s attention isn’t that difficult, it’s what you do with it once you’ve got it that matters. So make this Monday a massive day for reaching new customers, and wowing them!

Not sure where to start? Here are 13 quick guerrilla marketing ideas for real estate investors:

  1. Host a Walking Dead viewing party
  2. Post a video of you getting your real estate brand logo tattooed on your neck to YouTube
  3. Self-publish press releases
  4. Unleash a new real estate blog
  5. Turn your properties into 3D billboards
  6. Arrange a pop-up event to raise visibility for your brand, or need for affordable housing
  7. Hold an open house event featuring local artists
  8. Create an awards event or list of local individuals that are doing the most to innovate in real estate
  9. Pay a struggling homeowner’s mortgage payment for them
  10. Use Craigslist (all of the categories)
  11. Host a contest with a prize for local entrepreneurs
  12. Launch a real estate crowdfunding campaign
  13. Circulate this blog with you Twitter handle attached, and benefit from the hashtag activity

Want more ideas? The Guerrilla Global Summit is on in Orlando, FL from November 2nd to 4th with many great thought leaders in this creative marketing space, and it’s one of the most affordable events of the year.

Let us know about your World Guerrilla Marketing Day adventures…

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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When No Money Down Real Estate Gets Really Expensive

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on Monday, 22 April 2013
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If no money down real estate investing still really works in 2013 is it really possible that it could wind up less appealing than strategies?

There is no denying that no money down real estate works today between transactional funding and creative deal structuring, but can it actually end up being less profitable and more expensive than putting money down?

The promise of no down payment real estate deals has drawn thousands of new investors to the housing market year after year for decades, but while it has worked well for some, others have been caught off guard by ‘deals’ that weren’t really deals at all.

So what’s the main issue?

A lot of no down real estate investment education programs and gurus hone in on seller financing as a solution for those with no cash of their own to invest and poor credit.

Owner financed property might be a great idea for first time home buyers, those now purchasing a new residence after foreclosure and even some investors but it does come with its complexities and challenges for serious investors.

Seller financing is commonly offered by slick and amateur investors and desperate homeowners. Often they want above market prices in exchange, or demand terms and fine print that make properties much more expensive; shrinking profit margins and making them difficult to resell.

There can also be problems with transparency and seller ability to commit. Sometimes they aren’t actually able to sell on the terms they agreed to knowingly or not. This requires quality due diligence to ensure seller solvency, become aware of any additional liens and potential clouds on title.

All it takes is getting stuck with one dead weight deal you can’t get rid of to begin bringing down your house of cards.

All this can be avoided by sticking to wholesaling and using private, hard money or transactional funding.

This still offers all the advantages of leveraging other people’s money and the potential for zero down payment deals, but without the complexities, risks or digging into profit margins.

So line up your funding and you’ll be able to get out there and make a lot more offers, do a lot more volume and enjoy more income, bigger payday with less stress.
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Investors Must Prepare for Major Market Shift

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on Tuesday, 07 February 2012
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There is a major market shift coming that could end the majority of real estate investor’s businesses as fast as the last bubble bursting if they aren’t prepared for it...

Regardless of what the banks and government are doing or proposing to stem the flow of foreclosures a seller’s market is on the way and if the wave hasn’t hit your area yet, it could be a tsunami sized slap to your cash flow.

Real estate investors have enjoyed a free ride for the last few years with endless deals at ridiculous discounts to choose from. Many have never experienced a bidding war or know what it is like to be told not to make an offer unless it is full price. However, this is already happening in many areas of the country. There aren’t weeks or even days to think over whether you should put a property under contract, demands for bigger deposits and Proof of Funds are increasing and even trying to get a return call about an available property is going to be pretty difficult. If you business model isn’t structured right you could be in for a big wake up call and a stall in your cash flow.

Real estate investors need to be building better relationships with wholesalers and agents, be improving their negotiation skills, be prepared for tighter spreads as sellers push up their asking prices and focusing on attracting more buyers.

The one big difference between now and the last boom is the lack of availability of financing. There are lots of cash buyers out there to flip to but with sellers becoming tougher o the window to close and hard money a lot harder to get than ever before transactional funding is going to be crucial to your success. Start preparing for the shift now...
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