Viewing entries tagged REOs Subscribe to feed

Property Wholesaling: Making The Most Of The End Of Year Rush

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Friday, 22 December 2017
BestTransactionFunding

The next week may offer a big opportunity for wholesalers to get up their numbers. Are you making the most of it?

There is often a sweet spot for buying property at the end of the year. With some unique regulatory and trend twists, the last week of December could be especially profitable for wholesalers this year. It’s a short window, but one which can help you finish the year strong, and start 2018 even better.

Time to Buy

There is typically a lot less competition for bidding on and buying properties at this time of year. Realtors and home sellers who aren’t in a good financial position or who aren’t familiar with seasonal trends can be extra flexible and open to negotiating and cutting great deals.

Others are looking to make their annual numbers stronger. That can include home builders, real estate brokerages, and asset managers with REOs who are looking to maximize write-downs and losses for tax purposes.

The new tax bill also threatens to hit many with extra taxes in the new year, unless they downsize to avoid mortgage interest and property tax deduction limitations. Then there is the huge capital gains tax hit which will really hurt those who wait until January to sell.

Selling

While some people are too distracted with the holidays, there can be enhanced opportunities to wholesale and flip houses you find. Real estate is a great holiday present. Many executives and workers will be getting big bonuses this year, and will want to invest that too. Some firms and individuals will be under pressure to spend and invest to minimize tax exposure for the year as well. Then there are Realtors who want to get their numbers up for the quarter and year, and lenders who may be more willing to push through loan applications. There is often a dip in rates right after Christmas which can help buyers.

Investors should absolutely take time to enjoy the holidays, but don’t ignore the advantages to scoop deals, and flip them while others are distracted through the beginning of January.

Rate this blog entry
0 votes

Is Reverse Real Estate Wholesaling Really A Smarter Strategy?

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 22 September 2016
BestTransactionFunding

Is reverse wholesaling a better way to flip properties?

Flipping houses has become incredibly popular thanks to reality TV shows, celebrity home flippers, and a rising housing market. Many investors have found property wholesaling a great way to take advantage of this with less risk, and more volume potential. Now some are pursuing a niche in reverse wholesaling. So how does that work? Could it be a smarter way to profit from the current market?

Reverse Wholesaling has been gaining attention thanks to real estate educators like Kent Clothier at REWW. The concept is simple. Instead of contracting to buy properties or acquiring them, and then going looking for end buyers, reverse wholesaling flips the process around. It means finding the end buyers, then filling their orders with wholesale properties. It’s essentially preselling and taking pre-orders.

Does it make sense? Of course. Instead of investing all the time, effort, and money into inventory which you aren’t sure will sell, or how long it will take to sell, it means the confidence, speed, and enhanced profitability of knowing your deals are already sold before you get them. This decreases risk, and makes sure you are operating at maximum efficiency.

To make this strategy work investors need to target buyers first. The more qualified buyers you have waiting for multiple deals the more you can get out there and do. Of course you will ultimately need the deals, but there are plenty out there if you know where to look. The latest data shows a substantial double digit surge in REOs this year, and there are almost 1.4M vacant homes which could be ripe for flipping.

As a reverse wholesaler your volume and income potential may only be capped by your access to capital. That’s what transactional funding lenders are for. Best Transaction Funding specializes in this type of lending, and can provide up to 100% financing with no appraisal requirements.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

Rate this blog entry
1 vote

How To Land More Wholesale House Deals [Overcoming Sales Aversion]

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 11 December 2014
BestTransactionFunding

How can real estate wholesalers help homeowners overcome sales aversion to land more deals?


There are still over 200 billion dollars in defaulted loans and REOs at banks in America. This doesn’t even take into account all of the other foreclosures pending due to delinquent property taxes and HOA dues, nor all the motivated home sellers that need to sell their houses fast for other reasons.


The bottom line is that there are plenty of distressed properties, and potential for scoring deep discounts on homes that are ripe for wholesaling. There are many sources of these properties. Going direct to homeowners is still one of the favorites for the ability to cut out other costs and difficult to work with parties. However, despite the urgent need for many of these property owners to sell, and do it fast, and the valuable service that real estate wholesalers can deliver, there can still be a disconnect that prevents owners from taking advantage of the help.


Often this comes down to Sales Aversion. There are times when consumers want to be sold, for example when they really want to justify an expenditure to buy a luxury item. However, in general most of the population has come to avoid being put into positions where they are to be in high pressure sales pitches. They’ve learnt the hard way after falling for timeshare offers, being strong armed into overpaying for gym initiation fees, friends hosting parties with MLM motives, and even just being lured into giving up email addresses, only to be hounded with never-ending spam.


Consumers don’t want to be cornered into uncomfortable and abrasive sales pitches. They definitely don’t see why they should spend in order to be put in these positions either. Why should they take time off work, and drive miles to a used car dealer that refuses to give any upfront information? Why take the day off of income producing work, and endure a day of family stress to accommodate a property showing to a wholesaler who is vague, won’t provide detailed information upfront, and is expected to try and hard-sell them on committing to selling their home for pennies on the dollar?


This pain can be worse than just sticking with the status quo, even if they are in a tough spot. Sales 101 says that in order to make a deal prospects need to be shown a path out of their current pain toward pleasure.


Many of today’s wholesalers don’t realize that they aren’t accomplishing this.


Yes, property owners might be in distress. Yes, the best move for them may be to sell. It may even make sense for them to sell at serious discounts and just get out of the debt and walkaway. Wholesalers armed with transactional funding which can free homeowners, and even put cash in their hands may be their best option. But, in order to truly effectively convey that and make the process palatable and appealing can take a little more effort than some appear to be making.


So how can real estate wholesalers overcome sales aversion and close more house deals?


There are many ways to connect with motivated sellers. However, it really all boils down to two marketing strategies:


Notification Marketing

Word of Mouth Referrals


There is absolutely a need for Notification Marketing for new wholesalers. They need to get the word out about their services and product. This can include direct mail, social media advertising, Google Adwords, press releases, and email marketing. It can also include inbound marketing via articles and real estate blogs designed to help prospects in discovering solutions and meeting needs on demand.


Word of mouth marketing has evolved significantly too. The original form still applies, but this has also morphed into using affiliate marketers, social media, sponsorship, and strategic referral partnerships.


Whichever real estate marketing strategies are being used, one principle applies to making them effective for landing more real contracts today.


Doing business with wholesalers, and even just contacting them, and agreeing to meet them requires making it easy and attractive to do so. It has to offer the promise of more pleasure, while diminishing their current pains.


There are two critical parts to this. The first is overcoming objections in advance. This involves education, defining expectations, transparency, and clarity. This can be done upfront online, on real estate wholesaling websites, and in initial interactions.


The second part, which builds on the first is making it appealing to pick up the phone and call you, give up an email address, fill out a form, or arrange a showing. The anticipated experience should be appealing, not simply the homeowner opening themselves up to a high-pressure, hard sales pitch.


Define the process upfront, and offer a win-win for them for taking the action you desire, even if the two of you don’t wind up making a deal on this transaction. Cut the mystery, increase the clarity. This will boost your reputation, and the eagerness to share you by others.

 

Rate this blog entry
0 votes

3 Real Estate Trends for Wholesalers to Watch

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Saturday, 19 October 2013
BestTransactionFunding
The U.S. real estate market continues to be influenced by a variety of emerging factors simultaneously. This is creating incredible investment opportunities for innovative and fast moving wholesalers, while those failing to adapt will become trapped in reactionary cycles that will limit their success.

So what’s going on now, and how can real estate wholesalers cash in?

1. Revival of Industrial Real Estate

Several new reports highlight the growing attraction to industrial real estate and how big capital will be drawn in as the sector grows. A number of factors are changing this landscape from the widening of the Panama Canal to mobile and e-commerce growth resulting in giants like Amazon taking on millions of square feet of new space across the country. Making the jump into directly investing in industrial property may be a huge gamble for more investors, but by staying tuned into new development wholesalers can bank big on flipping residential and other types of local property in surrounding areas.

2. The End of Foreclosure Relief

Real estate professionals privy to detailed bank data know that there a huge wave of new loans falling into default. However, this pool of distressed homeowners that owe some $200 billion plus in non-performing loans are facing the expiration of short sale benefits from the Mortgage Forgiveness Act and the nation’s largest banks wrapping up their financial commitments under the giant settlement. This means a massive number of highly motivated sellers, with nowhere to turn but investors flush with cash, or at least with access to flash funding from BestTransactionFunding.com.

3. High Numbers of Construction REOs

While most investors have been busy chasing multifamily and single family homes, the biggest pool of REOs on banks books in many areas is actually made up of construction loans. While these properties can have permit issues, this also means less competition. And for those with the right buyers list – even bigger profit margins.
Rate this blog entry
1 vote

The Spreads For Real Estate Wholesalers Just Keep Getting Better...

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Friday, 11 October 2013
BestTransactionFunding
While some media pundits have recently raised questions as to whether the strong housing rebound will be detrimental to flipping houses a variety of trends and factors appear to be widening spreads for even further.

This week Market Wired can a story on a small Southern California investment firm which has tapped $50 million in private equity funds from Colony. Rather than using it to go after distressed property, the firm announced it will be acquiring already updated homes and plowing an additional 50 to 100% in further luxury improvements in them for resale.

Other passive income investors have been getting pulled into build-to-rent programs which land them with ‘deals’ priced above market and face having their money sit idle for months or years during construction before ever seeing a penny in return or cash flow.

Meanwhile Detroit seems unsure what to do with its $300m in redevelopment funds while sitting on 78,000 abandoned properties. At the same time residential mortgages in default top $210 billion, with a small fraction of this number represented by actual REOs. The rest are still ripe for picking up in a variety of ways.

Still, visibility seems to remain the issue which holds many wholesalers back from reaching their full potential and deal flow. The buyers are there, eager to pick up everything they can, and are surprisingly hitting the internet crying out for wholesale property contacts.

It’s on those investors with the inventory to step up and demand more visibility in order reap the rewards of the market. If you are not seeing all of the volume you’d like it is not the market, not a lack of demand, and with BestTransactionFunding.com to provide all the liquidity needed the only thing holding you back from more business and taking full advantage of the market is getting found by those that want the product.

To bridge the divide consider Twitter’s new advertising tools, press releases, SEO rich content, Google Adwords campaigns, and expanding your LinkedIn network.
Rate this blog entry
0 votes

Shadow Inventory: Now is the time to freak out

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Wednesday, 19 September 2012
BestTransactionFunding
Regardless of what you’ve heard, yes, it is time to freak out about shadow housing inventory!

That is, it is time to freak out about the many deals available and profits to be made thanks to shadow inventory being kept in the closet…

Savvy real estate investors are realizing that shadow real estate inventory is quickly becoming more of a blessing that a concern.

Few are now concerned about it having a significant, negative impact on the market today but there is no denying that it is lurking out there in a big way. Some have said the percentage of inventory in the shadows has dropped by as much as 30% in the last couple of years. However, there is no question that foreclosures have been surging by double digits in some states and Morgan Stanley recent projected there could be 5.7 million shadow properties being held off the market right now.

Holding these properties off-market is good for real estate investors and is pumping up home prices. Sure you’d like to do more deals and have them falling in your lap rather than having to look for them and some might say it is better to get foreclosures over and done with. However, no one wants a flood of distressed homes setting the recovery back right now and do you really want to be focused on fighting over REOs and having to overpay in ridiculous bidding wars.

On bright side shadow inventory means there are plenty of bargain properties out there for investors for the next 3-5 years while spreads grow and savvy real estate investors know that there are ways around the bulk of the competition, ways to get the lead and lock in profits when they buy regardless of what big money heavy weights might want a piece of the real estate pie.
Rate this blog entry
0 votes

Real Estate Marketing Hacks: Save Money on Content Marketing

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Tuesday, 07 August 2012
BestTransactionFunding
Content is becoming increasingly crucial to successful and profitable real estate investing but how can you win at content marketing without going broke first?

A slew of search engine algorithm changes (with more to come) has only increased the value and importance of great content and lots of it for winning more real estate business.

Volume is important too. There is a direct correlation between those who post more frequently and higher earnings. Then there is static website content and email marketing as well as offline marketing pieces including direct mail, print and PR which al rely on great copywriting for maximum effectiveness and ROI.

So with all this need for content and no substitute for high quality, original content (as the less fresh and crispy the more damage it will do to your real estate investing efforts), how can investors afford it?

For a start real estate investors need to budget for hiring great top level writers and do it right the first time so they don’t have to redo everything, wasting money and lead time. This also means budgeting for increasing content costs as the best writers become more in demand, just as REOs are.

However, there are many ways investors can save and make their budgets go further without sacrificing results. Delegating down is essential. Don’t weigh yourself down with tasks that you can hire someone else to do. Also while you need great writers who may not be cheap, don’t bog them down with submission, spinning and syndication when an inexpensive VA can do that for far less.

Re-purpose content as much as possible too. Physical newsletters can also be used for email marketing. Blog posts can be used to fill up newsletters and can be spliced off for social media posts too, as can articles and press releases. If you are operating dozens of social profiles and blogs for a larger presence and SEO and you must spin, opt for manual spinning of your own high quality original pieces and have it done by hand by a lower level writer after your top gun crafts the master copy.

Finally, look for ways to collaborate. Feature interviews with other related professionals and link to each other and vice versa, invite others to guest blog occasionally without turning your blog into and ad space and offer to guest blog for others.
Rate this blog entry
0 votes

How to Find More Local Distressed Property Deals

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Wednesday, 25 July 2012
BestTransactionFunding
Real estate investors fed up with over-demanding lenders asking lofty prices for REOs and trying to sift through endless junk ‘wholesale’ deals online could find that they have been overlooking golden opportunities closer to home.

Consider these 6 new ways to identify local distressed property deals and find new leads:

1. Note Buyers

Note investing has become a hot trend recently and means many new investors acquiring distressed property notes which they are in turn offering modifications or principal reductions on for homeowners or foreclosing on them with plenty of equity to spare. These could be great opportunities for picking up bargain priced homes without having to deal with banks.

2. Aged Internet Leads

When borrowers first go into default the get burnt out by all the phone calls, marketing mail and offers of help they receive and often choose to do nothing out of frustration. However, after a few months the pressure on them builds and they are often more receptive to purchase offers. Acquiring these aged leads can often increase conversion ratios for real estate investors and lowers lead cost from many dollars to cents apiece.

3. For Rent Signs

Instead of just scouting the neighborhood for new Realtor and FSBO signs hunting for rent signs can bring distressed property leads with less competition. Distressed homeowners will often try to rent their homes first when they can’t afford them or need to relocate because they don’t believe they can sell if they are underwater. With a little coaching these can be great prospects.

4. Code Violations

Cities are cracking down harder on home maintenance, dishing out code violations and fines for simply forgetting to mow the lawn for a couple of weeks. Many homeowners, especially those who are already struggling can’t keep up with these demands. Make offers on these.

5. Arrest Reports

While potentially harder to piece together watching arrest reports could unveil some highly motivated sellers desperate for bail money or needing to put together cash for a defense attorney. Domestic violence cases also frequently mean homes being abandoned or needing to be sold. Attorneys, bail bonds offices and even cops could be a great lead course here.

6. Divorces

Divorces frequently mean homes need to be sold and one if not two parties needing to find new housing for a double dip on leads. Try tapping divorce attorneys and even potentially relationship counselors for a constant flow of these distressed property leads.
Rate this blog entry
1 vote

Housing Inventory Drops 22%: Where to Find Deals Now

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Tuesday, 15 May 2012
BestTransactionFunding
According to the National Association of Realtors housing inventory fell 22% nationwide in March. New stats show this number diving even further in April with many areas sitting on just a 3 month supply of homes.

This is driving down the number of days on market for homes being flipped by real estate investors but it is also making it incredibly difficult for many to find deals locally. So where are all the bargains now?

Recent research has shown that simply picking up the phone and cold calling can still be incredibly profitable for real estate investors. In fact one study puts the value of cold calling at just under $400 an hour for real estate professionals marketing for homes for sale.

Still not many investors love cold calling anymore and if you have a $400 an hour attorney you are going to need to make more than that. Social media is an obvious choice for those who prefer hiding behind their screens though increased competition means those getting started late have a lot of catching up to do. New tips released directly from Facebook suggest being more direct in your pitches, including strong calls to action and using more video and photos.

Some investors have turned to new software to run reconnaissance on smaller regional and local banks to find out what REOs and non-performing loans they are holding and are jumping ahead of the line to get them before they hit the MLS.

Starting your own real estate investors group or even hosting a regular local networking party for mingling with potential sellers can work but just make sure you enlist sponsors to offset your expenses or you bar tabs could grow bigger than your paychecks.

Creating more of an event feel and using more gimmicks to bring in more visitors to open houses you are currently running can also draw in more nosy neighbors, potential sellers and can generate many leads and referrals. Though again, just make sure the bottom line stays in the black.
Rate this blog entry
0 votes