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How To Use Inflation To Your Advantage

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on Wednesday, 06 April 2022
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How can real estate investors use inflation to their advantage?


We all know that inflation has been breaking records. Yet, according to Treasury Secretary Janet Yellen, it could get far more extreme this year. She warns of “enormous” economic impacts from current crises.


This means that we could easily see the most furious rate of inflation in US history by the end of 2022. That is scary for a lot of people. For a lot of people who are not prepared and positioned for it, it should be.


Yet, it is also presenting equally unprecedented opportunities for real estate investors. Both to help others, and scale their own ventures.


Start By Preparing Yourself

Begin by insulating and positioning yourself for what’s coming.


Be sure you have revisited your budgets at home and in your business to account for inflation in your own costs.


Prepare your systems for scale now. Don’t get caught in the weeds, and sabotage this opportunity by being unorganized.


Free up more cash. Use transactional funding to do more wholesale real estate deals. This way you can maximize the number of deals you can do, while staying flush.


Determine who it is that you can help in terms of buyers and sellers this year.


Finding The Motivated Sellers

Property owners are being hit hard with inflation from every angle. Absolutely every expense is going up.


Note that this doesn’t just apply to homeowners, but also commercial property owners and businesses. Many of which have additionally been hit by lockdowns, riots and looting, and disruptions to their business models.


A big part of finding the motivated sellers now, is understanding where they are feeling the inflation pain the most, and how it will show up.


Alternative Leads

Instead of competing for leads based on the same data, consider alternative leads. Instead of REOs and foreclosures, how about leads on people trying to sell their vehicles because they cannot afford them anymore?


What about leads on those with large amounts of revolving debt sensitive to interest rate increases? Or those defaulting on business loans?


Targeting People To Market To

If you are mailing, using social media marketing, content marketing, or outdoor advertising and PPC, who will you target?


It could be owners of properties in HOAs who are raising their dues. Cities with even fiercer rates of inflation in living costs. Groups of the population hit especially hard by taxes. Or those heavily reliant on gas vehicles for work and everyday.


Motivated Buyers

Of course, to complete the cycle and turn deals into dollars you have to sell them too.


This could be targeting retail buyers moving to cheaper areas. Especially those cashing out lots of equity. As well as those now interested in using their equity windfalls to invest in real estate.

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The New Normal: How Should We Redesign Our Cities?

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on Wednesday, 16 September 2020
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2020 has been eventful. It’s certainly not over yet. As the world we live in evolves and changes, how should things be redesigned when it comes to real estate? What might it mean for investors?


ATTOM Data has reported a new rise in zombie foreclosures. In Jacksonville, FL, new foreclosure filings just 24% year over year in August 2020. Miami was the fifth hardest hit in the country. While the knee jerk reaction for many real estate investors may be “buy, buy, buy,” is it worth thinking about the bigger picture. Especially as so much is changing, and so fast.


It is certainly a great time to wholesale real estate. There is lots of opportunity to get in, out and paid fast. Though looking for a sustainable game plan and longer term strategy and market and niche, it is worth thinking about how things may be remolded on a macro level too. Rehabbers and landlords need to be even more alert since even minor fluctuations can throw off their plans. Ultimately, their business models need to be met by wholesalers too. For example, consider the fact that 50% of affluent New Yorkers say they are thinking about leaving. They are going somewhere. It’s all about staying ahead of the curve.


Then we are poised for one of the most notable redesigns of our real estate, landscapes and cities too. If we even see industrial era cities as an intelligent thing to have any more.


What might some of these changes be given the events of this year?


The New Normal

Some businesses like coworking space Venture X are trying to stay alive by bringing in touchless systems. Some may try encapsulated work spaces. These may help prevent the spread of future viruses. Other efforts may do little to nothing, like partial plastic shields and fogging elementary school classrooms.


Out With The Old

Many types of buildings may have become extinct. If viruses spread between floors in high rise buildings as the news has stated, then who will want to live in condos, stay in big hotels or work in big office buildings. Big schools and big hospitals may also have gone the way of the dinosaurs. What about indoor malls? Student housing for colleges? Retirement and nursing homes? More boutique sized commercial buildings with less people may seem much healthier and safer, and soon become in far more demand.


City Planning 2.0

Will self-driving cars have to replace uber drivers? Will we see the end of mass public transport? How about new layouts that discourage and are less likely to attract riots and civil unrest.


With some cities still not offering widespread indoor dining, and new delivery services emerging, then where the jobs are will change and where we choose to live for convenience can change.


Re-imagining The Home

The most obvious shift in residential real estate is to new locations. Specifically, away from dense urban areas and to homes with more outdoor and garden space. Between viruses and record numbers of wildfires and hurricanes, will the new standard call for stronger, safer, more self-sufficient homes that sanitize themselves? Will people demand multigenerational homes with quarantine suites.


Pricing

Will an absence in conventional mortgage lending shift demand to more affordable housing and government subsidized housing? Will gaps in wealth create more demand for ultra-luxury compounds and gated communities?


Will these changes alter the best properties to buy or sell, raise money for, what makes a good location?

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5 Property Tax Factors That Can Help You Create More Profit

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on Wednesday, 12 February 2020
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There are two kinds of real estate investors. The majority who bury their heads in the sand and avoid any mention of taxes of any type. Then those who take taxes head on, and use them to create more value and profits that others overlook.


Here are five ways to turn property tax related challenges into incredible opportunities for real estate investors…


Negotiating Past Due Property Tax Bills

When a homeowner wants to sell their home, the local taxing authorities are going to demand any past due property taxes are paid off by closing. This can mean sellers are asking way too much, thinking they have to pay off this giant bill. Or their Realtors try to put the entire bill on the new buyer. Often times these liens, as well as second mortgages, mechanics liens and code violations can all be negotiated out for a fraction of the initial ask. It’s any easy way to add tens of thousands of dollars to the equity.


Property Tax Auctions Create Urgency

Not all homeowners will appreciate the gravity of the situation. Yet, local authorities can foreclose on and auction of homes for less than $10 in back property taxes or related fees. When owners are facing the pending loss of everything it creates a lot of urgency. Buying tax liens is one potential avenue to taking over these assets, but simply stepping in to wholesale these properties can often work even better.


You Can Appeal Annual Property Tax Bills

Property owners have the right to appeal and challenge their property tax assessments and annual tax bills. In some areas like NY, as many as 50% of all bills are believed to be flawed and over inflated each year. This is free money for them if they aren’t challenged. Appeal, and you could save thousands per year. That can make these properties far more appealing, affordable and profitable for your end buyers. They can get more cash flow, even if you ask for a higher sales price.


There Are Lots Of Exemptions Available

Exemptions can provide huge savings each year. Some provide $25,000 in protection from taxes each year. Others can result in paying just 25% of the previous bill. These exemptions include homestead, veterans, seniors, disability, agricultural and other exemptions. If you don’t take them you are throwing away money.


IRS Tax Liens

IRS tax liens sound scary but don’t have to be. Often they come from faulty reporting to the IRS, including the sale of previous property. If the IRS thinks someone is behind on taxes they can lien other property they own, even above the value of the property. This can be a big shock to owners, and creates a lot of stress and panic. Yet, even these liens can be released for a variety of reasons or negotiated. It can be your secret hack for getting deals done that others pass up on.

 

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How To Do More Wholesale Real Estate Deals This Summer

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on Thursday, 13 April 2017
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Peak real estate season is coming up fast. How can investors do more wholesale deals in the months ahead?

Late spring and summer brings the highest volume of real estate transactions for the year. Those who excel during these months gain a great advantage in incoming cash, building a marketing budget for the rest of the year, and in generating ongoing referrals and repeat business. What can property wholesalers do to maximize the number of deals they get done this season?

Build Your Buyers List

In order to flip houses fast and maximize deal volume, build that buyers list in advance. Build your list of lenders too. Have the money and end buyers lined up so that as soon as you get deals you can turn them around and fund the next one. This can be done via direct mail, networking, Facebook, Google Ads, and more.

Market To Sellers Early & Often

Once school is out every Realtor and wannabe investor, along with a new lineup of websites is going to be vying for attention and marketing to these potential sellers hard. Then you have to compete on price and branding. It’s far easier and more profitable if you start connecting and building relationships before the rest of the pack. When they are ready to sell you should already be their first choice to pick up the phone and contact.

Make The Move Easier & More Attractive

Despite the sense in buying, selling, or investing this spring and summer, many will find a variety of excuses to hold back. For some it is the uncertainty of moving into a new neighborhood. For others it is navigating the mechanics of moving. Then there are those who are worried about how their family will handle the move. Teardown these objections in advance. Use your real estate blog to provide clarity on the lifestyle in different neighborhoods and how investments there are likely to perform ahead. Create referral relationships with movers and Realtors to facilitate a smooth process. Team up with new apps that make transferring utilities and forwarding mail a breeze. Build a sales and moving experience clients will rave about to others.

 

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.

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5 Productivity Boosting Tools for Real Estate Investors

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on Wednesday, 11 May 2016
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Elite productivity levels are key to empowering investors to get the best ROI on their time.

It’s not too difficult to make great money in real estate. Yet, to reach your full financial potential and to still be able to enjoy the free time you chose this path for it takes a conscious effort to maximize every minute.

Check out some of the tools that could help you get more done in less time…

1. Upwork

Upwork is the merger of outsourcing giants oDesk and Elance. Here you’ll find thousands of freelancers to help with your tasks. Perhaps even more importantly Upwork offers automated support for tracking the productivity of remote workers, bookkeeping, 1099s, and more.

2. FreshBooks

FreshBooks is great for all those other remote employees and contractors you haven’t hired through a platform. Time tracking tools can be used to monitor work activity of your in-house team while you are away from the office, and to track how much time you are really spending on each deal. It also makes recording expenses easy so that you are prepared to maximize your deductions when it comes to tax time.

3. Trello

Trello is one of the easiest to use project management dashboards. Load your tasks, delegate them to team members, and track progress and store documents all in one place. This cuts down on a ton of communication time and miscommunication.

4. WordPress

A high percentage of websites and blogs now all run on WordPress. Each website designer out there will have their own preferred system, but this works just fine for some pretty strong companies. The easy to use content management system which most of your team will already be familiar with removes training challenges and expense, makes it easy for you to control your own site and slash costly designer labor hours.

5. Google

The iPhone might look cute, but Google really packs a punch when it comes to integrated free and low cost business tools and apps. From Gmail to Drive, and Hangouts to internet marketing tools there shouldn’t be too much you need to do that you can’t do with Google. It’s a great starting suite of tools before you feel you need to branch out and pay for something more robust.

Those looking to slash the time it takes to fund their real estate deals will also find flash funding from Best Transaction Funding can provide rapid, no hassle cash for wholesale deals. For some this will save weeks or months of trying to deal with banks.

What are your favorite productivity tools?

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Is it Time to Delete Your Real Estate Buyers List?

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on Thursday, 01 October 2015
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If your wholesale real estate deals aren’t moving, is it time to scrap that buyers list and start over?

The buyers list continues to be a vital tool for real estate wholesalers that want to flip houses fast, stay on the right side of the law, and use transactional funding to minimize risk, and maximize returns. But what if your list isn’t working? What if you aren’t seeing the results when you blast out new deals, or even get complaints?

What’s the Problem?

If you list isn’t responding it’s worth asking why. Is emails are getting opened but no action is happening, it could be they aren’t loving the deals. This can be really frustrating for wholesalers. You might be blasting out marketing emails with low $7k or $10k wholesale house deals, but getting no answers. When was the last time you asked your list what they want to see more of? Less of? You might separate your list by criteria so that you aren’t spamming and creating immunity to your emails, and can increase conversions.

Dialing Back

Sometimes investors just have the wrong people on the list, or don’t have enough trust.

If you have a list of buyers that know you, like you, and trust you, and are honestly interested in investing – you’ll do fine. But how do you get there?

One of the biggest challenges for marketing in all types of fields is that rushing to build lists fast can also lead to junk lists with lower conversion rates. Remember the goal. That’s probably selling more properties, fast, and profitably. A disconnected, poorly targeted list can often cause business owners to start making more mistakes to please a list and boost metrics for a list that isn’t going to convert anyway.

In some cases it might be smart to ask if people want off. In others may be the key is dialing back, and ensuring you have laid the foundation for attention, credibility, and high conversion rates. Some great questions to ask here are have you made yourself accessible to them, given value first, and showed interest in your list member’s interests? If you do this first, by the time you send that email with a wholesale deal they’ll eagerly make time to open it, and if at all possible act on it. Even if they can’t buy it right now, maybe they’ll want to help you so much that they’ll pass the opportunity on and recommend it to their friends and colleagues.

Conquer Objections Upfront

People are so busy today that they don’t have time to call or even email you to ask questions or voice concerns. You may be sending out well priced deals with accurate repair and value information, but are you providing them with lender details for funding that deal, highlighting how great the area is, and why it is worth buying? In same message?

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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7 Reasons to Stick to Wholesaling Real Estate in This Market

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on Tuesday, 02 October 2012
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As the housing market improves all sorts of tempting real estate investing ideas get floated and become more ‘attractive’ from rehabs to rentals to getting into new construction, subdividing land and even investing in real estate stocks but there are at least 7 good reasons investors may be wiser to stick with wholesaling…

1. Rehabbing Can be a Nightmare

There are profits to be had from rehabbing and fixing up homes and it can be fun but you never know when a project is going to turn into a complete nightmare, money sucking pit which puts you in the hole.

2. Holding Properties is Risky

Every day a property is held means exposure to more risk. There is risk from natural and manmade disasters, vandalism, bad tenants who kill cash flow and changing in the market. Wholesaling real estate and flipping properties means being able to eliminate all of this.

3. Faster Returns

Being able to turn around a property in a day or even 3 days means an incredibly short cash cycle and rapid paydays. This means the ability to do far more deals a month and year, dramatically driving up income potential.

4. No Need to Take on Partners

It can feel a little more cozy to have someone else coming along for the ride but partners pose all sorts of potential issues and you never know when even the most apparently concrete partnerships will fall apart for a variety of reasons leading to big losses.

5. Growing Opportunity

As more real estate investors and home buyers gain confidence and jump into the market they need a source for good properties just like you. Don’t compete; serve them.

6. Minimal Risk of Lawsuits

Lawsuits, even bogus, malicious ones which end up going nowhere can be extremely expensive and stressful for real estate investors. This risk often comes from repair work done, missing seller disclosures, tenants and others being injured on properties and more. Just avoid it.

7. Easiest Deals to Finance

Wholesale real estate deals are the easiest to finance. By using transactional funding there is no need for jumping through the endless hoops that come with qualifying for conventional mortgages or having to burn significant resources to find private mortgage lenders or even getting burned by crooked seller financing deals.

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Wholesale Real Estate Leads, Double Closings & Free Marketing

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on Wednesday, 15 August 2012
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Real estate investors are finding they are facing fierce competition and new obstacles at every turn today but that doesn’t mean that there aren’t still big profits to be had from flipping houses for those who know how to be resourceful.

Real estate investors face 4 major challenges today:

 

  1. Finding viable wholesale deals
  2. Getting financing
  3. Finding investor friendly professionals to facilitate their transactions
  4. Getting more out of their marketing budgets

 

This has been especially true for real estate investors hunting for distressed property deals recently. Sacramento is essential tapped out for REOs, sunny locations such as Key West and Destin, FL continue to see well-priced homes selling in just days and Silicon Valley? You had better be ready to pay well over asking price and bring a trunk full of cash to do the deal on the spot.

The Detroit area was just ranked the 2nd most affordable U.S. city for buying a home by CNN Money and combined with low home prices and a real estate market which is rebounding faster than most of the rest of the county has created a tremendous demand for any publicly listed REOs and foreclosure auction properties.

Wouldn’t it be great if you could find well-priced wholesale real estate deals, both individual homes and bulk packages without the bidding wars in the best neighborhoods at good prices?

News coverage of the grand opening of My Coordinator LLC a Romeo, MI title agency highlighted the firm’s investor friendly services which include facilitating double closings for those using transactional funding for flipping houses as well as a range of auxiliary services for out-of-area investors needing assistance setting up operations in Michigan.

Press coverage of the event and an interview with the title company owner Erika Weichel also highlighted how the company provides a FREE 6 YEAR MARKETING service to clients with regular follow up to investor’s clients on their behalf, helping to automate marketing and reduce costs. Being wired into the local market and working with many investors and struggling local homeowners as well as maintaining a large database Erika also says she has wholesale properties available for those looking to acquire rental homes or flip houses in Michigan and several other states.

Definitely worth looking into for any investors butting their heads with any of the above challenges and those flipping homes in other states may wish to look for other agents of Continental Title who may offer similar services and be as open to aiding investors...

 

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