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Real Estate Investing: How To Prepare Yourself To Win In The New Economy

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on Saturday, 07 October 2023
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Want to ensure your real estate business takes off and continues to flourish in the next few months and years?


It’s amazing to already see the great disparity dividing investors, entrepreneurs, and businesses. Some are going bigger than ever with ease. They are growing into new niches, with $100M pipelines and plenty of deals and capital lined up. Others are already struggling and the fear and doubt that is creeping in could prove self-fulfilling.


Whether you are just starting out in real estate, have been riding the recent bull run but haven’t experienced adversity before, or have been at it for decades, there are both regular cyclical and major macro economic shifts happening.


In order to get ahead, and keep winning and growing, you’ve got to be intentional about it.


It may take some tweaks to your model, or a whole new approach. This is an important time to refresh your perspective and anchor it in what really matters and will make you successful.


Consider these 10 ways to prepare for success in real estate, and avoid being swept away by external changes.


Take Stock Of What Really Works

What has really been working, and has directly created your success so far. Be sure to differentiate between those fundamentals, and the frills that may have come along with it.


For example; it was probably working the extra hours and going above and beyond to take care of those customers, not the Ferrari that got you there.


Remember the progress you’ve made and what you’ve achieved so far.


Take Time Away To Think

There are so many distractions around us. Which is often what leads to making serious mistakes, and continuing to slide into failure.


Take a long weekend away. Detach from the everyday tunnel vision. Gain time to truly think and focus.


Unplug and evaluate. Then take time to see new things, and what’s really happening outside of your own little bubble. See how so many are actually struggling right now, as well as how others are doing so well that they are oblivious to this. See new ways of doing things.


Relist Your Priorities

What is really most important to you?


Above the work, is it your family, a partner, or your own health?


In real estate, which metrics and KPIs are truly most important? Hint; they are probably customer happiness, NPS score, and net profit. Everything else may be a dangerous distraction.


Learn What The Successful Are Doing

How are those that have been through these changes before handling it? Not just what they are saying or recommending, but what are they doing in their own finances and business? What have they done to survive and thrive through changes and challenges in the past?


Is it shifting investment strategy, increasing marketing efforts, or being more prudent in their offers?


Read books by real human authors, with real experience. Join mastermind groups or start your own. Hire the right team for this phase of your business, and be sure you hold onto them.


Make Sure Your Team Gets It

Most founders should be horrified by the gap between their initial vision and efforts, and how the business ends up getting run on the front lines.


Ensure your team knows the big vision, the why behind changes, their most important metrics, and the values that are there as guide rails to get there.


Discern What Will Stay The Same Vs. What Will Change

You’re probably far too behind the trend to slap the ‘AI’ label on your business and hope it helps. Now we even have AI created Coca-Cola. It’s become a cheesy and cringe worthy meme, more than a signal of value.


It can help to sail with tailwinds, yet it is being strong in the fundamentals that make a good and sustainable business. Then you build the marketing on top of that.


Refresh Your Morning Routine

It may be time to shake up your morning routine. Add new important tasks. Ensure it anchors you in a positive and successful mindset to overcome the day ahead.


Be sure to check out our Fall Funding Deals, with interest rates as low as 1%.

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Why Wholesaling Real Estate Remains The Best Strategy For 2021

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on Thursday, 01 April 2021
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Wholesaling real estate remains the best investment strategy for investors this year. Check out how it is stacking up against other real estate plays that may not be as attractive anymore.


Many real estate investors are searching for and debating the best moves to make in this uncertain environment. While all traditional real estate investment strategies can still work, and are for some investors, more are looking to lower their exposure to risk, increase their upside, and stay ahead of the curve.


New Construction

While many builders and developers are still busy building, construction material prices are up significantly, and only appear that they will continue to rise in the near future. That in turn means the prices of new properties are up significantly. This is risky as a builder. Pre-construction investors investing in individual units have also found sellers changing terms and prices on them after a contract is signed, or are terminating contracts to sell for more to someone else, eliminating all of the returns they were counting on.


Rehabbing

Construction costs are also hitting rehabbers and fix and flip investors. This is on top of the volatility of not knowing how local markets will continue to perform and the direction they will trend in. Unless flippers are in and out in days instead of months this leaves them very exposed to changes which could derail their planned exits and profits.


Rentals

While some types of rentals are certainly performing, and should continue to do so, the events of the last year have shaken up rental property investors. They never expected they would see mass eviction bans at this scale. They are worried that if this was possible, anything could be possible in the future. It’s not the safe or secure play it was before 2020.


Tax Liens

Tax liens used to be a lesser known real estate strategy. Now between big funds using them to access inventory, and gurus turning masses of novices onto it, investors are reporting auctions are overcrowded, with no appetizing profits to be made.


Mortgage Notes

Much the same of the above applies to institutionally originated mortgage notes. There are exceptions for privately originated mortgages. Though investors are still scared the government could change the rules on them too.


Wholesaling Real Estate

Wholesaling offers high returns, the ability to get in and out before the market changes, and access to leverage. There are both motivated sellers and buyers. If you don’t buy in until you already have an exit it is really hard to lose with this strategy.

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Pandemic: The Truth About Investing In Real Estate In The New Economy

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on Thursday, 19 March 2020
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Suddenly all of those who have been denying a new dip was coming are realizing they were way wrong. Many are still lying to themselves about how deep this is going to go. What do you need to know about surviving and thriving as a real estate investor now?


It’s Going To Make 2008 Look Like A Vacation

This economic crisis is going to make 2008 look like a test trial. Expect the fall out from COVID-19 to be at least 2x as bad.


Fortunately, we can also take comfort in the fact that there are predictable patterns and cycles. The massive shift in daily life will really shake up some people.


They didn’t know life could change this much, so fast. Yet, we know that over the long term most real estate will keep growing. Today, the luxury NYC condos that were selling for $2M yesterday are probably worth less than a roll of toilet paper. Other parts of the market, where those quarantined have lots of yard to move around and maybe room to grow their own food are going to explode in value.


Schools and work may never be the same. In many cases that is a good thing. It is just speeding up the most to being more efficient.


A 70% drop in the stock market and some housing markets shouldn’t shock you.


Foreclosures

There will be some similarities from 2008. As in the best moves to make to get through. Yet, some things will be substantially different.


Don’t count on a flood of foreclosures. Governments are already banning foreclosures and evictions. If we don’t eradicate the virus fast, the foreclosure process will probably be years in the making.


So, be wary of spending all of your time and marketing money on foreclosures. Sellers aren’t going to buy the fact that they will lose their homes.


If you hold mortgage notes, the best thing you can do is to be proactive. Communicate with your borrowers. Give them a break on payments. Those will be the ones who stay and work things out with you.


However, there will be other types of distressed property sales. Especially among new developments and all of the owners of Airbnb properties who far overpaid and can’t rent their units. As well as speculators and flippers who need cash. Don’t forget condo owners in big cities who don’t want to be quarantined in small apartments in the middle of the chaos.


Landlords & Renters

Renters are going to stop performing. They are already being told Trump is going to send them bailout money, just like Obama in 2008.


Be proactive, talk to them, give them a break now. Or they are going to drag it out a lot longer than you think. When they do get out, you may have to lease at dramatically lower rates.


You can make it, if you work with them now, and keep tenants who will deliver cash flow again in a couple of months.


Wholesale Real Estate

Real estate wholesaling is the perfect investment strategy for this market. Get in, out and paid fast. Before the market can change on you. Use transactional funding to finance your deals, and hold onto your cash for now. They are already making runs on the banks and banks are limiting access to cash. You’ll have plenty of opportunities to invest it as asset prices get lower in the months and years ahead.


Just don’t stop marketing. This is your chance to expand market share.

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Good News For Real Estate Investors: The Stock Market Meltdown Has Begun

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on Friday, 09 February 2018
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The stock market has begun to enter a new correction phase. That’s great news for real estate investors. Here’s what to expect, and how to make the most of it…

Coverage by the Wall Street Journal shows the Dow diving over 10% in early February 2018. This could well be the beginning of the major correction that we’ve expecting for years. There will be some small rebounds before the real correction, and overcorrection, but the WSJ already reports sell-offs by big institutional investors and automated algorithms. The Dow alone could end up plunging over 15,000 points before it gets down to the baseline at the beginning of this bull run.

It’s always sad when hard working individuals and families lose their savings and retirement investments in these cyclical shifts, but the warning flags have been up for years. Many who drag their feet could easily lose 60% to 70% of their nest eggs in this correction.

On the bright side this trend is only likely to create a new surge in real estate investment. The necessary exodus from the stock market, sends investors running to safer, more tangible assets, and those with better growth prospects. That’s real estate.

This means more demand for buying investment properties, and lending private capital to real estate investors.

Or course, the darker side and larger impact when these slides happen is a drag on the economy, hurting homeowners, and with higher interest rates, often a pending correction in the housing market too.

So, in the short term we should see even better conditions for fast flipping. Then we’ll see more motivated sellers and distressed house deals. That’s when the deeper discounts come back.

Real estate wholesaling is the perfect property investment strategy for safely generating more cash, and profiting from this shift. You can get in at attractive prices, and out fast for profits. WIth wholesaling it doesn’t even really matter which direction the housing market is going in. If you build in enough spread, and price your deals right, you can still make great money, and move them fast in both highly competitive rising markets, and declining ones.

Now is the time to really make a push with marketing and educating others. Help them out of the stock market, and into better investments, and earn well while providing a valuable service.

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