Viewing entries tagged wholesaling real estate Subscribe to feed

Fed Not Cutting Interest Rates In 2024 Afterall

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Friday, 01 March 2024
BestTransactionFunding

After a brief glimmer of hope in the headlines, it turns out the Fed is deciding not to cut interest rates this year. What does it mean for real estate investors?


Hopes Of A 2024 Fed Interest Rate Cut Flop

While the hype around potential rate cuts certainly likely helped boost stock prices and spending for a few weeks, it seems that relief isn’t coming after all.


According to Bloomberg, the Fed now does not foresee cutting rates at all this year.


How is this likely to impact the market?


More Inflation

Higher costs of borrowing result in higher consumer prices. Even though it is claimed that high rates are used to battle inflation, we continue to see the opposite at checkouts online and at the store.


On the upside for real estate investors, this could also help to continue to support a rise in retail home prices and rents in some areas.


More Distress

Recent rate hikes have also coincided with increasing financial distress.


We’ve now got record volumes of nonperforming consumer debt in several categories, as well as ongoing defaults on mortgages, to the tune of billions of dollars.


With the news the NYCB is replacing its CEO and allocating more cash to cover loan defaults, this finally appears to be hitting the banks as well.


Motivated sellers of all sizes and types out there. From regular homeowners to big corporations, to financial institutions.


It’s a great time to be wholesaling real estate. While there are now countless ads and websites offering fast cash offers for homes, you can stand out by taking the time to understand the seller’s unique situation and triggers. Find out what’s most important to them, and not. That may or may not be price, closing date, and term. Then formulate the most attractive offers.


Funding Your Deals

A new report shows that it has not been this hard to get a car loan since the midst of covid. With banks holding money to cover loan losses, expect mortgages to also become harder to get.


Fortunately, whether you are just looking for the funds to get started in real estate, want to lower your risk, or expand faster with more capital, transactional funding is still available, and at great rates.

Rate this blog entry
0 votes

Will 2024 House Prices Crash By 50 Percent?

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Wednesday, 20 December 2023
BestTransactionFunding

Will the bubble burst in 2024, and send house prices crashing by 50 percent or more?


According to one economist, the ‘everything bubble’ is about to pop. Leading to the deepest depression we’ve ever lived through.


If that happens, what will continue to make real estate stand out as an attractive investment? What’s the best way to take advantage of the dip, without having to wait and hope that the Fed cuts interest rates?


The Everything Bubble

Economist Harry Dent predicts the worst depression of our lifetimes coming in 2024. This time it will be deeper and longer. With asset prices falling across the board.


He forecasts that stock prices will fall by around 90%, and crypto by close to 100%.


Additionally, in contrast to 2008, when he says property prices fell by around 30%, this time he says they will fall by 50%. For those that experienced 50-70% property price declines in the last financial crisis, this one would see them far even lower.


The primary reason for this is being blamed on 100% artificial inflation since the wake of 2008.


Real Estate Is Still The Most Attractive Investment

While trading prices may temporarily stumble, at least real estate offers a tangible asset. One that can bounce back. As well as being able to produce strong cash flow streams, regardless of paper valuations.


We could see a lot more demand for real estate in a period like this. As savvy investors are going to need a flow to preserve their capital, more income sources, and want to buy when prices are low.


The Best Investment Strategy

If you also anticipate a hard correction, or just aren’t sure about the direction of the economy in 2024 and beyond, then wholesaling real estate seems to be the best strategy.


It enables you to be in, out, and paid before prices change.


With Best Transaction Funding you can also take advantage of rock bottom interest rate deals right now. No need to wait in hope of the Fed cutting rates in the run up to the November election.


What’s your forecast for house prices in 2024? How will you navigate the market successfully?

Rate this blog entry
0 votes

US Home Prices Hit New Record High

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 30 November 2023
BestTransactionFunding

The S&P Case Shiller Index reports US home prices have hit a new record high, after posting 8 straight months of consecutive gains.


Just how high are home prices in the US now? Why are they going up so much? What does it mean for property investors?


Record High Home Prices

While all real estate is local, and there seem to be many ways to calculate ‘average’, Forbes recently put the average home price in America at over $495k.


Including interest for retail buyers that use financing that means the average home can now cost homebuyers well over $1M.


The average rent households can expect to pay in their lifetimes may well be over $500k as well.


The Ideal Conditions For Real Estate Wholesalers

The mainstream media say that house prices keep going up due to a lack of homes for sale. Of course, high inflation on everything is certainly adding fuel to the fire as well.


Many industry experts, Realtors, veteran investors, and home sellers may disagree with these findings too. Some are certainly seeing transaction volume down, longer marketing times, and buyers wanting to pay less.


Recent bank data shows that there is a mountain of distressed debt growing. Including defaulting credit card payments, auto loan repos, business loan delinquencies, and construction and commercial mortgage defaults.


This signals great distress behind the scenes, with many ripe to be motivated sellers. Together with fast rising prices, and a shortage of publicly marketed units to meet demand, these are the ideal conditions for wholesaling real estate.


Connecting The Dots

There is great need out there. With millions of individuals, households, and businesses needing help. Real estate investors that can help bridge this divide stand to be very well compensated in this market.


While many motivated sellers have not listed their homes, they are out there. Many more would love to, and need to sell, if they can get a reasonable offer. Consider how to identify their distress, and reach and and connect with your purchase offers.


There is plenty of investment capital that needs to be put to work as well. In the form of transactional funding, this money can be very cheap. With current deals on jumbo sized loans coming with as low as 1% interest.


Then it is about presenting this inventory to end buyers. These may be other professional investors, movers seeking to downsize and find more affordable housing, or affluent families looking to protect their wealth in real estate. Find out where they are, and market to them.

Rate this blog entry
0 votes

How To Beat Your Competition To The Real Estate Deals

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Tuesday, 17 October 2023
BestTransactionFunding

This is a fantastic time to be wholesaling real estate. Of course, that means that many others are hunting for deals too. If you believe that there is a shortage of publicly listed properties for sale, that may make it even more challenging if you’ve relied on that for deals in the past.


Here are five more ways to out maneuver and beat your competitors to the punch.


Failing Competitors

Even though the real estate investment remains strong and attractive many started folding their businesses out of fear at the beginning of COVID, then as rates hiked.


Even though they may have stopped actively investing, many have portfolios of properties they are holding. Or at least sizable databases of seller leads.


You may acquire their company, their real estate assets at a discount, or their lead lists.


Insurance Agent Referrals

Insurance agents are among the first to find out when people find themselves in a crisis. That may be a health issue, a car accident, or damage to their properties.


In a few cases their clients may get payouts that make them strong cash buyers for your properties.


In most cases insurance companies do not pay claims. If they did, they wouldn’t be in business or so big. In these scenarios policy holders may have to sell their homes fast for cash.


Lumber Company Leads

This is another untapped referral source. When trees fall on garages or homes, lumber and tree service companies get the first calls.


In other cases these referral sources can tell you when prospects are desperate for cash and are trying to sell their trees cheap. Or where there may be a property which also has a lot of value in timber rights. Money that may be used for helping to acquire or extract extra value your competitors don’t see.


The Unemployed

The AI revolution is creating levels of unemployment and interruption to income at a scale we’ve never seen before.


The vast majority of property owners cannot afford to carry their mortgages for even a month or two without a paycheck.


Depending on your contacts and access to data, you may find these sellers by tracking employers that are making layoffs, through recruiters, new credit defaults, and job wanted ads.


Be The Fastest And  Most Attractive Buyer

Have your proof of funds in hand, along with a contract, and be willing and able to close faster than your competition. Those things can mean a lot more to sellers than the top line price today.

Be sure to check out our Fall Deal with interest rates as low as 1% on loan amounts over $600k.

Rate this blog entry
0 votes

Been Laid Off? Wholesaling Real Estate May Be The Answer

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 20 July 2023
BestTransactionFunding

If you’ve been laid off, see it coming, or have even just had your hours and income cut back, is wholesaling real estate the answer?


Mass unemployment is snowballing faster than most realize. It’s a domino effect that isn’t just going to wipe out far more jobs, but also most retirement accounts that are not anchored in tangible assets.


If you or someone you know is in the path of this financial avalanche, wholesaling real estate may be the only thing to cling onto in order to survive it.


Mass Unemployment Is Coming

It’s already surging under the radar of official statistics and lagging data. Don’t be surprised if we exceed 20% unemployment by next year.


Consider that out of just over 330M people in the US, only just over 60% of those have been participants in the workforce.

Then look at all the big corporations and tech companies that have been laying off tens of thousands of employees. Including Goldman Sachs.


Then you have AI and automation replacing your gas station and grocery store clerks. Then soon all of your delivery drivers, warehouse staff, and uber and truck drivers.


On top of that the Bureau of Labor Statistics puts around 10% of the entire population working in customer service. About 20% of the working population. All of whom could be quickly unemployed by new technology.


Then another 18M freelancers working on jobs that could soon be replaced by robots. Even if those robots do a terrible job.


In turn, the fallout will force other businesses to fold and make layoffs.


With hiring freezes in place, don’t count on finding another job.


What Can You Do?

You can’t just live off of your savings. You can’t take a job that doesn’t keep you ahead of real inflation. Which by the way is still up by high double digits. These are just paths to a slow financial death, and a lot of stress and sleepless nights.


Entrepreneurship and investing seem to be the only viable answer. To be creative and find a way to create your own income, without relying on anyone else.


Of course, most businesses still have high startup costs, and are slow to produce any meaningful income.


Trying to sell enough products on Letgo or Amazon to pay your bills is going to take a while to build up.


Real estate obviously stands out as an answer. Though most do not have the very, very deep pockets needed, or capital of their own they can afford to bet on rental properties and fixing up and reselling homes. So, what’s left?


Wholesaling Real Estate

For most, wholesaling real estate may be the only thing that can save them.


Using transactional funding, you can have 100% of your deals financed, including closing costs. Even if you’ve taken some credit hits lately.


This is a real estate strategy that allows you to get in, out and paid, in just days. Providing anywhere from $5k, to $50k, to over $500k in profit per deal.


You probably don’t need many of those each month to replace your old income.


Now is the time to get ahead, even if you haven’t been laid off yet.

Rate this blog entry
1 vote

AI Could Create Double Digit Unemployment By End Of Year

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 13 July 2023
BestTransactionFunding

AI is trending. It could also create a new downward trend in the economy, and double digit unemployment in just a matter of months.


What does this mean for real estate investors, and where the deals are at?


Change Is Coming Faster Than You Think

When the economy fell off a cliff, seemingly overnight in 2008, business owners and investors thought that they still had 6 or 12 months before a crash. Then it was too late.


With lagging economic data, technology speeding up change to its fastest pace ever, and the Fed with its foot to the floor on the gas pedal to try and increase unemployment and cool the economy, many will wake up tomorrow and find their world has already been disrupted.


Double Digit Unemployment

Even the most vocal advocates of AI and automation technology have also voiced their fears that their success will also create massive unemployment around the globe. Which in turn could create immense poverty.


It’s already happening.


Some AI may be helpful. Unfortunately, it lacks a lot of intelligence in favor of a lot more artificial help. Almost every business seems to be trying to implement it. Yet, without understanding how it is already killing their own businesses.


Virtually all stores are now installing self checkouts, and are putting workers out of work. The frustration this is causing for consumers will likely push them to just a few delivery services.


Big companies like Upwork have replaced human customer service with AI chatbots, which are killing their relationships with their biggest revenue producers and most loyal, long time customers.


According to the Bureau of Labor Statistics, there are almost 3M people working in customer service in the US alone. That represents nearly 10% of the population. Close to 20% of the working population.


Then with many companies blindly turning to AI for content creation, without thinking about how counterproductive it is, and how junk and repetitive content is killing their companies, there’s another 18M freelance jobs at risk on Upwork alone.


More unemployment will be created as even jobs not directly replaced by AI will go away as these companies fail, due to implementing it too early.


It’s easy to see how this could potentially snowball to high double digit unemployment in no time at all.


Discounted Real Estate Buying Opportunities

Mass unemployment and business failures would also mean a tremendous amount of financial distress, credit defaults, and discounted property buying opportunities. Both in the residential and commercial space.


Few many want to hold real estate in a declining market. Though there will be plenty of end buyers who do. This makes for the perfect environment for wholesaling real estate as a strategy.


You can flip to luxury buyers needing asset protection, foreign buyer with economies hit harder than the US, and those investors operating and switching to truly affordable rentals, including Section 8 owners.


Win the space with intelligent human service and differentiate your business with it. You can implement AI later, in the next wave when the kinks are worked out, and there is clarity on the consequences, as well as potential benefits.

Rate this blog entry
0 votes

Don’t Copy These Retail Strategies, If You Want A Booming Real Estate Wholesaling Business

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 08 June 2023
BestTransactionFunding

The retail industry is cannibalizing itself. We are seeing the results daily. With more stocks plummeting, big companies losing market share, and having to conduct huge layoffs.


Yet, many small businesses still think that they should copy some of the very same tactics and campaigns that are sabotaging and bankrupting these companies.


Losing Retail Strategies Not To Copy

Rewards programs have become the downfall of many companies. For a start, they are often confusing and frustrating, and just lead to losing trust and more friction in the hard one relationship.


No one has time to sign up for more rewards or discount programs. If you went around a mall today, and gave out your number to every retailer, you may end up spend half a day of your precious time deleting and unsubscribing from all the junk mail and texts.


Which in turn means that all the effort put into these programs is wasted capital on behalf of the business. It just causes more efficiency and friction at checkout, and ruins the user experience.


Especially in the wholesaling business, if you just give people the best deals, they will keep on coming back. No need for gimmicking programs. The money you save on the junk processes can then be simply passed on in lower prices, earning more business and customer loyalty organically.


This can also apply to online sign up walls, or forced activities on social media like sharing with friends to get a discount.


Similarly, trying to force autopay on customers you finance can wreck the relationship and rob you of repeat business if it isn’t working well.


Another is popups and ads on your website. If one popup ad isn’t working, then adding ten more if only going to hurt you 10x more, rather than helping.


The Essence Of Wholesaling

The very essence of wholesaling is to buy low and sell low. Do this, and provide an efficient and streamlined process with a good user experience, and you will win plenty of customers, and they will keep on coming back, and grow the amount of properties that they are buying from you. They will want to refer others.


Save the money on wasted gimmicks and features that detract from that, so you can give better deals, and enjoy better overall net profits. Then you can also build up your budget to do more marketing and fill the top of the funnel with more prospects. Through ways that give them more value and make their lives better and more enjoyable.

Rate this blog entry
1 vote

Over Half Of Americans Expect To Lose Everything

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 30 March 2023
BestTransactionFunding

A new survey reveals that over half of Americans expect to lose everything in a new recession. Most believe that recession is already here.


While that is tragic for all of those individuals and families, it does create an enormous opportunity of a lifetime for real estate investors to help, and to be well compensated for that.


America Is Going Bankrupt

Big bank failures, and the dollar amounts involved are likely to make the last great recession seem miniscule in comparison.


If the world’s biggest banks can go under so fast, then not only will that have a waterfall effect on other businesses, but most individuals stand little chance of making it.


55% believe they will lose everything in a new recession. Close to 70% believe that recession is already here in 2023. While some at the very top and bottom may be insulated from this, it seems like there are many more who are not in tune with the economy, or do not have a healthy appreciation for just how fragile their financial situation is.


Here are the three main things this means for real estate investors…


Millions Of Motivated Sellers

The US population is estimated at around 336M in 2023. Around 60% of households are homeowners. That suggests at least tens of millions of those individuals who are becoming uber motivated to sell their properties before they lose them.


Some will need to be educated and nurtured through your funnel. Others will require creative solutions. Yet, not even all the banks left standing will be able to buy all of these deals. There is so much opportunity.


Massive Housing Needs

The flip side of this is that all of these tens of millions of households will need somewhere new to go.


Many may have to rent. Many will not be able to due to destroyed credit, and lack of documentation that has now made it harder to rent from all of these corporate landlords than to get a mortgage.


So, there will also be millions needing to buy new homes. As well as other investors looking to load up on supply to meet the booming demand for affordable housing and rentals.


People Need To Make Money

Jobs are being obliterated. Fed monetary policy continues to push toward creating more unemployment to deflate the economy.


Many are losing all of their savings in bank crashes and a tanking stock market or other exotic investments.


This is a great time to build out your own team with the best talent. Including training others how to help you wholesale houses so that you both win.

Rate this blog entry
1 vote

Laid Off: Is Wholesaling Real Estate The Answer?

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 09 March 2023
BestTransactionFunding

Have you been laid off or see the possibility of it coming in your near future?


The world’s biggest and wealthiest companies have all joined in to create a massive layoff tsunami. In addition to hiring freezes, meaning no new jobs to get for many.


This will no doubt keep on trickling down from tech, banking, and other professional jobs to hit those businesses that have relied on their spending. In turn, that means even more people will lose their jobs.


This is largely a result of recent monetary policy designed to do just this. Recent announcements that the Fed is planning bigger rate hikes, and aiming for a higher peak will quite likely fuel high inflation in the short term.


At the same time, the data shows the value of retirement savings plummeting, leaving most with little to no financial back up.


Whether you see the potential for being laid off in the near future, or have already been let go, there is an urgent need to generate income now. Not in two months or six months, but to stay ahead of the bills due this month.


Secondary to that is rebuilding cash reserves and savings for larger expenses and the future.


Why Wholesaling Real Estate Stands Out As The Only Answer

For the majority in this situation, wholesaling real estate is really the only solution. And it is a highly attractive one.


First, it enables you to get paid fast. If you dive in, you can probably make money in wholesaling a lot faster than it would be to get a paycheck from a new job. Plus, there are no interviews to ace, no requirements to pass, or tests to take.


It is also one of the few things that can provide a high enough income to keep up and create a surplus.


Additionally, it provides lump sums of cash to rebuild reserves.


Unlike fixing and flipping houses or buying apartment buildings, you can use transactional funding to finance 100% of your purchase price and closing costs, so there is no money out of pocket.


This is also something you can do anytime, anywhere. You can do it from home. You can do it through a pandemic or recession. You get control of your financial future, and are not relying on others for your income or financial health.

Rate this blog entry
0 votes

Cash Home Buyers Are Rising: How To Land More Of Them

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Tuesday, 28 February 2023
BestTransactionFunding

New data from ATTOM and Bloomberg shows that 50% of home purchases are now being made by cash buyers in some cities.


Why are there so many cash buyers in the market right now? Why should you be connecting with more of them to fuel your investing? How do you do it?


The Rising Percentage Of Cash Buyers

New data reveals that cash home buyers now make up 50% or more of all transactions in at least 13 major cities. Including Atlanta.


Recently the media has spun a lot of negativity about the economy. Which may or may not be accurate. Though it may make it surprising that so many cash buyers are showing up to purchase homes.


However, in this next phase of the market when traditional retail mortgages can become harder and more expensive to get, cash buyers certainly do rule.


They are certainly the preferred choice for real estate wholesalers looking to turn their deals fast, with certainty, and the fewest risks of falling apart before closing.


Who Are They?

ATTOM poses that institutional investors have actually pulled back a little, with regular retail home buyers jumping in as these cash buyers.


This is great for wholesalers who can find well priced deals, and still sell at retail, and close to top of the market prices.


Of course, many institutional investors have been working on liquidating old inventory, and are preparing to make more acquisitions as the market balances out.


This may be a great time to jump in while there is less competition and find more profitable deals.


Many of these retail buyers may include those selling homes with lots of equity and looking for new destinations to live in. As well as those relocating to more affordable areas. And those cashing out poorly performing retirement accounts, and looking for something more solid to put their money into.


How To Build Your Cash Buyers List Now

This next phase of the real estate cycle is one in which cash buyers are always extremely important.


In many cases traditional retail mortgages become very elusive. Cash buyers are the most reliable end buyers to wholesale your deals too. Those who control the most qualified buyers will be those that win the most. So, how do you line up more of them?


SEO, and publishing blogs and articles is still the highest ROI way of attracting real estate leads today. According to Whatconverts, it can be 3x or more profitable than other forms of online marketing.


However, the same data set shows that by adding a little PPC to your marketing mix can actually exponentially drive up the results of your SEO and content campaigns.


With all the new technology and noise out there, human connection, relationships, and better customer service have also only become more important and valued. So, also look for opportunities to build an offline community and network to build those real connections with those who are likely to be cash buyers.

Rate this blog entry
1 vote

World’s Largest Fund Manager Blocks Withdrawals

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 12 January 2023
BestTransactionFunding

The world’s largest asset manager appears to be in financial trouble after blocking client requests to access their funds.


Could this be the beginning of a new liquidity crunch? How fast might it flow over to other institutions? What can you do as an individual investor to protect your finances and grow them in the coming turbulent times?


Is A New Liquidity Crisis Already In The Works?

Blackrock recently announced that it will not be honoring its clients requests to withdraw funds that they’ve made since September last year. At least for one of their $3.5B property funds. This is the world's largest asset manager, which boasts $10 Trillion dollars under management.


That is around 20x bigger than the FTX debacle. Which should be a major red flag for everyone.


Then we also saw Goldman Sachs ring in the new year with the announcement it will be laying off close to 10% of its workforce, across all banking departments.


What Does It Mean For Investors?

Big brand names seem to mean nothing. The bigger they are, the harder they seem to fall. Remember Lehman Brothers. They were far, far smaller than Blackrock.


Invest directly for yourself. Individual investors should be very wary about having too much of their money tied up in any one fund, bank, or entity. Invest in a way that you can control your own assets. Keep your money diversified.


Stay liquid. Having more cash on hand seems essential for making it through what’s next. Executed well, some of this cash can be used to capitalize on discounted deals and investment opportunities. Cash is king in a financial crunch.


One great way to balance continuing to grow and do more deals is to maximize financial leverage. Check out transactional funding for 100% financing for your real estate deals.


Get in, and get out fast. This is certainly shaping up to be a very volatile year. Wholesaling properties, especially when you are pre-selling them seems to be one of the best ways to create more cash fast, and to avoid getting stuck. Or having your money tied up in anything too long.

Rate this blog entry
1 vote

House Prices Fall The Most Since 2009

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 27 October 2022
BestTransactionFunding

Bloomberg’s headlines recently announced that house prices just fell the most since 2009. Is that possible? If so, what do you do as a real estate investor?


Have House Prices Really Fallen That Much Already?

In contrast to Bloomberg’s report, Zillow data shows that while even hot markets have seen average home values falling a few thousand dollars month over month, they are still up by double digits from last year. Though there are many individual motivated sellers, companies, and banks accepting deep discounts from cash buyers.


If you lived or invested through real estate in the 2008 Great Recession, then you know that house prices can and did go down much, much more. They are likely to again.


How Far Can Prices Go Down?

If you owned property between 2006 and 2010, or know anyone who did, there is a good chance that property fell by as much as 50% to 70% in value during that time.


There are some exceptions. Slow growing, Midwest markets, and where home equity loans were limited to 80% LTV, like in Texas, may have suffered less severe drops.


Still, given that many buyers have recently been overpaying for properties by as much as 50% over top retail asking prices, this next dip could be even deeper than the last.


Real Estate Is Still The Best Way To Make Your Money

Those that are just now experiencing a rotation in the economy and real estate cycle for the first time may find this very scary.


It doesn’t last forever. Prices will rebound and surpass recent highs. At least according to what we’ve seen throughout history up until now.


However, if you didn’t plan for it, and don’t know how to navigate this part of the market, it can be shocking.


Fortunately, this is actually one of the best times to invest and make money in real estate!


There is a lot less competition, you can demand much better value deals, and terms.


How To Make, Not Lose Money In A Declining Market

There are several keys to winning in this market. One is making sure that your offers are low enough to be in and out, and make a profit, before the market catches up to you.


The next is to stick to wholesaling real estate. This means either flipping the contract without even buying the property yourself. Or buying and immediately reselling to an end buyer within 1-3 days.


You can lower your risk, and dramatically boost your cash on cash returns even further by leveraging and using transactional funding to finance 100% of your purchase price.

Rate this blog entry
1 vote

Who To Wholesale Houses To Now The Market Has Changed

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 13 October 2022
BestTransactionFunding

Who should investors be wholesaling their properties to now that the market has changed?


Even those that denied the change was coming have joined the mainstream media in admitting that the economy and real estate market has changed. Some have become very bearish on the outlook.


Of course, this is the best time in the market for wholesalers to finally pick up some of the best discounts on properties that have been available in over a decade.


There is no shortage of deals to acquire. The big question many may be grappling with now is how to organize their businesses to keep a great flow of deals and income. After all, you don’t want to load up on properties that you can’t immediately unload and convert into cash profits.


It is pretty clear that the middle class retail homebuyer is in deep trouble. Between skyrocketing everyday living costs, taxes, and interest rates, most are being blocked out of the housing market. So, who does that leave?


Wholetailing To Affordable Home Buyers

The middle class is now flocking to more affordable housing. Including new areas they never would have considered moving to before. Lower income buyers are also benefiting from new home loan programs that are offering zero down payment options.


Wholetailing To Luxury Home Buyers

The luxury end of the market still seems to be enjoying blissful ignorance about the current recession and inflation that is crushing the middle class. Even when they do feel it, real estate is often a go to for securing their assets.


They are still buying big ticket properties. In many cases they buy teardowns in prime locations which are perfect deals for real estate wholesalers.


Wholesaling To Veteran Investors

Just like many lenders, Realtors, and others, many real estate investors that jumped into the market over the past decade are going to bail out and find jobs elsewhere. Many already are.


Look for those who kept flipping through 2008 and COVID lockdowns, and are eager to take a high volume of deals from you over the next few years.


Wholesaling In Bulk To Funds

Funds are still active. Especially buy to rent funds. They are snapping up multifamily buildings, and entire SFR projects.


Which of these end buyers will you focus your business on?

Rate this blog entry
0 votes

The Real Estate Dip: How Little Should I Be Offering Now?

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 14 July 2022
BestTransactionFunding

Property prices and rents appear to be floating down. With many seasoned investors expecting a deeper dive on the horizon, how much should you be making offers for now?


Shopping For Discounts

In this new phase of the market everyone is looking for deals and discounts. They don’t want the risk of buying in at the top of the market. Then instantly losing as prices continue to come down.


With this in mind, savvy buyers are going to be offering even less than current market value to build in that cut.


You may have recently seen some veteran real estate wholesalers and fund managers remind us how they were buying properties and mortgage notes and reselling them for as little as 30-40 cents on the dollar back in 2008. Sometimes even less than that.


We may not be there yet. Though many investors are sticking to offers no more than 30% of recent comp values.


Don’t get hung up on rules of thumb. Especially as the market is always in flux, and changing. Though do make sure you are ahead of the graph.


Focus On…

Instead of focusing on rules of thumb for offering 90%, 50%, or 30%, of previous values, the two things it makes more sense to focus on are:


  1. How much you can sell it for
  2. How much you need to make


The first is about risk. Lowering your risk. You can do that by focusing on wholesaling real estate, and using transactional funding. Meaning you aren’t getting stuck holding any deadweight properties which may go down in value and put you underwater.


So, before buying, know how much your buyers list are going to pay for it.


If they are willing to pay 90% of market value, then you can offer a lot more to sellers than your competitors, and still make good money.


The second part of this is working based on how much you need to make.


This may either be a flat dollar amount per deal, or a desired percentage return. For example, you may want to be making at least $20,000, or 20% profit for it to make sense for you.


Decide on your number, and on your fees, taxes, and transaction costs so that you are netting what you need. Make your offers based on that.


Some sellers may still be resistant and in denial. Though it won’t be long before they are desperate to sell. You can always update your offer then to account for the changing market.

Rate this blog entry
0 votes

How To Know When It’s Time To Go All In On Property Wholesaling

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 12 August 2021
BestTransactionFunding

 

Is it time you went all in on real estate wholesaling?


How do you know when it is the right time to shift your focus from other real estate strategies to wholesaling real estate? Or to go all in on it in place of your other niches, or use it as your lead to get into real estate investing?


There are many ways to invest in real estate. This is one of the greatest and most profitable times to do it. Just make sure you are getting the most out of it; maximizing your upside potential, and stripping away potential risks.


When You Are Making Most Of Your Money Reselling Or In Equity

Perhaps you are already using a variety of methods of investing in real estate. When was the last time you really sat down to evaluate and compare where you are making most of your money and the best ROI?


If you are making a lot more in equity and reselling, than in rents, then it may be time to switch your focus to just wholesaling.


Perhaps you’ve owned rentals over the past couple of years, but have barely been making a couple hundred dollars per unit. Maybe you are net negative after costs, repairs, reinvesting in improvements and the personal time you’ve put in. If you can make more wholesaling the same types of properties in 3 days, than you can make in 3 years of rents, it’s probably time to change it up.


Construction Costs Are Eating Up Your Margins

Hyper-inflation has been adding 30% or more to the cost of construction materials. More hikes are coming in taxes and labor costs, if you can find good help.


This has already led many homeowners to indefinitely put off home improvement projects, and others to cancel plans to build new homes.


You may make more profit just by immediately wholesaling that property as-is, than trying to rehab or improve it. Not to mention you’ll get paid a lot faster, and be able to roll up and compound those returns more times over the year.


Uncertainty In Rents & Future Property Values

If you aren’t certain that your income from rents will be consistent, or you just aren’t 100% sure where values on flips and buy and hold properties will be in a few months or the next 24 months, then it may be better to sell now and make the gain rather than gambling on the future.


You Can Finance Your Deals & Eliminate Risk

Real estate wholesalers can take advantage of transactional funding to finance 100% of their purchases and even closing costs. It’s fast, easy funding, that means you can virtually take all of the risk out of investing.

Rate this blog entry
0 votes

Where Rents Are Rising The Most

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 17 June 2021
BestTransactionFunding

 

If you are wholesaling real estate, it pays to know where rents are rising the most, versus where they are crashing.


Some real estate investors and home buyers in general are having a harder time finding properties to buy with the white hot housing market.


Fast rising, hyper competitive markets like this can be great for real estate wholesalers. You can often buy at retail prices and sell for more the same day. The danger with that is getting caught holding a lot of overpriced dead weight as the market turns. That can bankrupt you.


Ensuring that you have a more sustainable business that won’t leave you hanging out to dry is smart. So, for those looking for better deals with quick exits, where do you look?


Where Landlords Are Buying

Retail buyers can be fickle, and by the time the data comes out revealing they have left the party it is usually too late to correct your buying strategy.


While selling to retail home buyers can provide premiums, selling to flippers and landlords can be a higher volume and more consistent business and income stream.


Right now landlords can afford to pay more than ever as they are rich with cash capital and technology is helping them to operate more efficiently and profitably - creating better yields on pricier deals. Investors tend to keep on justifying buying at higher prices after retail buyers are priced out of the market.


It’s also worth noting that landlords are storming into the single family market more than ever. They are even buying out whole new home communities. According to Globe St. the SFR market is now worth $3.4T, just behind MF at $3.5T, but the gap is closing.


Follow The Rents

Landlords are chasing rents, cash flow and yield. So, rent performance can be a great indicator of where landlords are going to be looking for deals, and where your deals will be easier to market.


According to Seeking Alpha the average US monthly rent rose about 4% over the past year.


However, there is great disparity between markets that are crashing versus rising. Rents are now down almost 9% in San Fran and NYC. Declining rental rates can also be found in Seattle, Boston, DC, Chicago, and Minneapolis.


Among the fastest growing markets for rental rate increases are Memphis, Tampa, and Phoenix. Riverside, CA has seen rents up by almost 12% as people flee expensive dense urban areas like LA and the Bay Area.


You may also choose to check out many of the more modestly growing markets that may not have peaked yet, and offer the most room for growth and sustainable growth ahead.


You can wholesale your deals raw as-is, provide units already occupied with tenants, or offer turnkey deals.

Rate this blog entry
0 votes

The Best Investment For Beating Inflation

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 13 May 2021
BestTransactionFunding

 

Hyperinflation is here. What is the best investment and income generator to beat it?


The cost of just about everything seems to be rising on one excuse or another. Some types of investments appear to benefit from that, but there may only be one which offers truly superior upside, with low risk.


Hyper-Inflation Is Here

If you’ve already been wholesaling a lot of real estate you may have too much money to have noticed it yet, but rapid inflation is here.


Food prices are up. Gas prices are up. In many cases small items may have had prices hiked by 30% or more over the past year. Even if that is $1 an item, if you spend $300 a week at the grocery store you may only be getting $200 worth of products compared to last year.


At the same time many are experiencing hyperinflation in their taxes between new types of taxes, and tax hikes.


So, many are experiencing less net income, finding what they have left doesn’t go as far as it used to. Then are paying more tax on any gains they make from their investments.


If you not only want to keep your finances balanced, but see them improve, you have to start supersizing your income and wealth growth faster than inflation.


How To Stay Ahead Of Inflation

Inflation can hike the price of many things. Including crypto currencies and publicly traded stock prices. Unfortunately, those types of speculative investments are also hyper risky. There is no downside protection at all. A single tweet can wipe out 20% of your wealth and capital in hours.


Real estate is typically the ideal investment to offset inflation. It typically goes up in line with, or better than inflation. As we’ve seen over the past year, the price of eggs may have gone up $1, but the average house price went up by at least $30,000.


However, now inflation is also hitting construction and labor costs. Meaning it is very expensive to build rentals or to fix and flip. The past year has also set brand new precedents in how rentals can be controlled by the government.


Then there is real estate wholesaling. It is by far the best income generating tool and investment in this type of environment.


It’s all upside, benefiting from inflation. In many cases extreme demand means you can buy pretty high and still sell for more the next day. However, with wholesaling you don’t get caught by the downside either.


Plus, you get to use 100% financing, keeping your cash for unexpected emergencies and use it for marketing and growing your business, instead of having it locked up in a house.

Rate this blog entry
0 votes

The Other Benefits That Make Wholesaling Real Estate Irresistible

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 15 April 2021
BestTransactionFunding

 

Wholesaling is a preferred real estate strategy for a variety of very obvious reasons. Yet, there also some very important benefits both new investors and veterans of other strategies will find make this play irresistible.


You are probably familiar with wholesaling being the low risk, no hammer needed, fast way to get paid in real estate, and enjoy large lump sum gains. Then there are the tax benefits and supersized returns.


However, the benefits don’t stop there. In fact, for wise entrepreneurs and experienced investors the following reasons may be even more vital and urgent drivers to choose wholesaling.


Scale

Wholesaling is not only an easy strategy to scale up, but also down. This can be incredibly important during rotating cycles. Done right, you don’t have to worry about laying people off, defaulting on office or storefront space, or carrying too much overhead.


You can also scale up and down on-demand, whenever you like. Do more when you want to boost your income, and scale down when you just feel like taking it easy.


Vacation Time

Landlords never get the luxury of vacations. Rehabbers certainly can’t afford to take time off in the middle of a project. They aren’t even getting nights and weekends off. As a wholesaler you can choose to hit pause any time you want. You can pause your offers, and take a long weekend staycation. Or pause for two weeks and go to Hawaii with the family. All without really putting much of a dent in your income.


No People, No Property Management

You can certainly hire a small army of remote staff to really scale your wholesaling business. Though you can also make some pretty good money doing it by yourself. You don’t have to be recruiting and managing a lot of people. You don’t have to deal with all of the headaches of property management or have to step in when they let you down.


Never Be Worried About The Market

Almost everybody is concerned about the market and where it is headed next. It is stressful, and 90% of the time leads to bad decisions. Wholesalers don’t have to worry about that. They are always in and out and paid before anything changes on them. When things are ugly out there, the deals get even better and more plentiful. When the market is on fire and accelerating fast it is easy.


Easy 100% Financing

Sure, there may be ways to get really creative with the paperwork and deal structuring and blending funding options to finance buy and hold rentals and fix and flips with no money down. Though it will always take a lot more work and energy, and is never guaranteed to close. In contrast wholesalers can finance 100% of their purchases with the easiest financing available. Even with no appraisals or credit checks.

 

So, are you wholesaling yet?

Rate this blog entry
0 votes

Why Wholesaling Real Estate Remains The Best Strategy For 2021

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 01 April 2021
BestTransactionFunding

 

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.

Rate this blog entry
1 vote

Are Rentals Dead? If So, These Could Be The Next Best Moves To Make...

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 07 January 2021
BestTransactionFunding

 

While the pandemic of 2020 may have been foreseeable, no one envisioned such an extended period without rental payments or a ban on evicting tenants. If this is the end of rental properties, then what is the best investment move to make now?


No End In Sight For Eviction Bans

Dealing with non-performing tenants is nothing new for experienced landlords. An indefinite ban on evicting those renters is something completely different.


NY has already given renters a free pass through at least May 2021. CA appears to be next in extending their moratoriums. Even without any more extensions this backlog could easily make it 2022 before landlords could regain control of most of their units.


For landlords the bills are still due. If they don’t have other sources of cash coming in, then they face losing the portfolios they’ve worked so hard to build.


The Exceptions

It is true that in the long term property values have proven to just keep on going up. Even through every type of crisis that has come along.


There are PPP loans to help landlords stay afloat, and some may be able to take advantage of rent paid directly by local government agencies. We may also see much wider spread use of universal basic income and housing subsidy programs over the next year.


Big companies like Amazon are still investing billions in rental housing, and big institutional funds will still invest in these properties to play the long game. Just expect far fewer individuals being active in this space.


Wholesaling Real Estate

For those who need income now, wholesaling real estate is probably exactly what is needed.


It can provide fast cash injections which can supplement for lost earned income at jobs, and rents. Providing both living expenses, more investment capital, and cash flow to hold onto rentals.


The market is perfectly aligned for wholesaling too. We have almost $100B worth of distressed loans and motivated sellers in the pipeline. Meanwhile, retail buyers are active, highly motivated, and pushing retail house prices to new highs.


Wholesalers can flip their deals to rehabbers and directly to retail home buyers. Both of which are plentiful in the market today. Buy right, and you can bake in your profits upfront.

Rate this blog entry
1 vote