We’re seeing more and more billionaires. They can be exactly the type of clients that can completely change your wealth as a real estate wholesaler as well.

Forbes and Fox Business note that Kylie Jenner is set to become the youngest ‘self-made’ billionaire ever. At just 20 years old she has outpaced Mark Zuckerberg, and has already amassed $900M from her makeup line and receives over $100M in revenue from TV show appearances and endorsements on social media.

She’s just one of many newly minted younger billionaires. As with the other members of Forbes’ richest lists, if they don’t make the bulk of money in real estate, they soon find they need it to preserve and multiply their wealth, and celebrity home flipping is becoming even more common. Yet, if they are going to be able flip houses in the fashionable destinations they love most, they are going to need to find wholesale deals.

These can be great clients and end buyers for real estate wholesalers. They have the cash, they are unlikely to nickel and dime you to death as less affluent buyers will do. They can be great volume buyers, and will take on those big dollar properties that can put hundreds of thousands or a million or more in your pocket in a single deal. Bigger deals can even be easier to do than smaller ones for investors. Besides, for the same amount of work, would you rather make 10% or 50% on turning a $50,000 home or a $5M home?

How do you land them? It doesn’t have to be as hard as you think. Make sure you get connected, hang out in the right places, and are highly visible online when they are searching for properties.

If you aspire to become a billionaire yourself, then having billionaire and even millionaire clients can certainly help. Serve them well and turn each one into referrals and more wealthy clients to fuel your real estate business.

 

Many real estate wholesalers are letting thousands of dollars in potential cash flow and income just slip through their fingers each month. Start monetizing these items and multiply your income.

A lot of real estate wholesalers work really hard to hustle and find and sell deals. Yet, they are often letting some of the easiest money just go to waste. Or worse, go right to the competition. By recapturing these streams of income wholesalers can hit their financial goals much faster and see more consistency in their incomes.

Leads That Don’t Fit Your Criteria

As a wholesaler you are digging up leads every day. If you are doing well you probably have a lot of calls, emails, and contact form fills from those that just don’t meet your criteria for some reason. These will typically far outnumber the deals you actually do. The price range, neighborhood, level of repairs, or asking price just might not be a perfect fit. Yet, these deals can still be a great fit for other investors. Trade them or get a referral or assignment fee for them.

Homeowners Who Don’t Want to Sell Cheap

You are likely running into a lot of homeowners who just believe they can get more for their homes if they hold out for a better offer or list it for sale with a Realtor. Maybe they can, maybe they can’t. Why not refer them to a Realtor? Maybe there is a legal way to get compensated for that. If no one buys the listing, you can always go back and make another cash offer.

Movers Needing New Housing

How are you helping all your sellers with their next housing solution. Many will need to buy or rent something else. Are you helping with that or just giving that business away? Every wholesale transaction you do could easily lead to 1, 2 or 3 more, all without having to dig up a new lead.

On Site Advertising & Sponsorships

If you really have a great website (not the Investor Carrot type) and have invested in SEO and ads and are generating good traffic, then there are plenty of people who are going to be willing to pay to get in front of those website visitors and the ones who make it on your email list or join your Facebook page. They can pay for ad space, or sponsor your site and marketing efforts. That may not be a lot of money each month, but once you build a tribe of sponsors and set them up to produce residual passive income for you each month, it’s easy extra cash flow to fuel your wholesaling business or surplus funds you can treat yourself with.

 

Father’s Day 2018 is coming up fast. What incredibly valuable Father’s Day gift ideas are there to jump on this year? What gifts might fathers want to give themselves and their families this year?

Give Real Estate

As a real estate wholesaler you are uniquely positioned and able to give others the gift of real estate. No matter what your budget is you can find some seriously discounted deals that can still make unforgettable Father’s Day presents.

It could be scoring a deal on your father’s childhood home and letting him restore it. It could be a fishing camp, a cabin in the mountains or a resort property or retirement home. Or an income producing investment property that will keep providing for your sons and step sons or son in laws who are fathers.

Run Father’s Day Specials

A good home is so vital. Why not run a special for all the fathers that need to be investing in real estate or putting their family in new homes? Give great deals for the next few weeks and make a big deal about it. Maybe you don’t even need to limit it to fathers. There are a lot of mothers out there who have to play both roles too.

Exercise Your Freedom to Take Time Off

One of the best and most valuable things about being a real estate wholesaler is the freedom the set your own schedule and take time off when it is important. Use that! What’s the point in having that freedom if you don’t use it?

Flex your freedom and take time off with some fathers. It could be your father, a child who is a father, a nephew, sibling, grandfather, grandson, step father, or a random father out there who really needs support.

You can just hangout and have fun or spend some quality time together. Or why not give them the gift of learning about real estate wholesaling and transactional funding. It could change their life and their legacy. It could have a great impact for good on many people in the next generation. You can give them a book or course on wholesaling, share some of your resources like lenders and title companies. Or even better, take them under your wing for a day and show them how you do it.

What will you give this Father’s Day?

 

Here’s the key information that can help investors sell more wholesale houses…

Every real estate wholesaler out there would like to sell more homes, right? Many could be moving a lot more deals, be making a lot more money and be building a better cash buyer list.

One of the biggest challenges is getting more potential buyers to take action faster, with better offers. There are still lots of options out there for buyers. What often holds them back besides simply trying to sift through all the house leads is being concerned and wary of making the wrong choice. They see less pain associated with not making a decision or buy, than with buying a bad deal.

Their time and funds for due diligence are limited. They can’t run a full analysis and pay for an inspection and appraisal on every potential house lead. They’d go broke. As a real estate wholesaler you also have to be conscious about how you spend your funds and time, but you can close this gap.

Just like when renovating a house you don’t want to go over the top to the point where you are bleeding money and are working inefficiently. Yet, providing a little more information upfront can mean you attract more qualified buyers, spend less time fielding inquiries from people who won’t buy, and you can speed up your sales cycle, while boosting profitability and deal flow.

So, what information can wholesalers be providing to help buyers make more fast decisions?

Remember that fear of anything is generally fear of the unknown. So, the more facts and data you can provide the more confidence you’ll give others in your deals. It will help your offerings stand out above most others too.

When it comes to the basics the more photos and video you can provide the better. It’s not like they are going to buy until they’ve checked it out anyway. They only thing you are doing by not providing this information is slowing down the process and thinning out potential buyers. If you aren’t local then you can ask the seller or agent for them, or hire someone to go out and do this for you. If the weather is ugly, have someone go back when the sun is out - it can make a huge difference. If you don’t have any photos then don’t waste your time advertising.

Providing an idea of the value or ARV shouldn’t be that complicated either. Many don’t, even though you’ve certainly done the homework for yourself already. This could be comps from an agent, an existing BPO or old appraisal.

If you can pass on surveys, title policies and lien searches, why wouldn’t you? It will only speed things up and add more value.

Repairs is obviously one of the biggest factors. What the property condition really is won’t change the number of people who will buy. By withholding this information you are only creating more menial time consuming work fielding calls you shouldn’t be. The number one reason people don’t buy is because without information they have to assume the worst. They have to assume this is a complete teardown or at least a gut rehab including foundations, roofs, plumbing and electrical. Plus, where they live a basic roof replacement might cost a minimum of $25,000. Where this property is located you might be able to put a new roof on for $5k.

So, pass on any ballpark quotes you have from others, or get free estimates from contractors and forward those. It can increase your odds of success and the premium buyers are willing to pay. Just because they know the real deal.

Rental comps can help too. What’s the rental potential and at what level of remodel?

Most importantly, what’s wrong with it? If you are advertising this at a discount there is something wrong. There is some kind of distress. If you don’t tell your buyers they have to guess. Their first guess is likely to be that no one else wants to buy it and there are massive repairs or liens attached. They automatically write your deal off. Be upfront. Maybe this was a probate sale, foreclosure, or the last investor ran out of money to finish the rehab. Share that info to add more value to your deals and help them sell faster.

 

With virtual real estate wholesaling being made increasingly easier, investors can live anywhere they want. Where will you choose to live?

Virtual Wholesaling

Thanks to technology, real estate investors can live in one place, and wholesale houses anywhere in the country. It isn’t just possible, but more accurate than it has ever been before. For many it is an increasing necessity to be able to flip houses in other markets, and to stay diversified in multiple markets in order to keep profits up, business growing, and income consistent.

If you’ve got a laptop, or even just a phone, you can do it.

Driving Factors in Where We Choose to Live

As a mobile business owner, it can seem crazy to hear about people living in the street or out of RVs in high priced San Francisco and other cities. There is just no need to live in super-expensive neighborhoods, when you can work from anywhere. Of course, if those are the places you’d prefer to own your own home, and can afford it comfortably, why not?

Yet, for many others, there is far more profit to be retained, and earlier retirement in more affordable destinations.

Other drivers in this decision of where to have your home base this year may include property tax rates, and limitations on the mortgage interest deduction, and state and local taxes. For others it is being near family. It could be lifestyle. If you love the water, then go live in a top boating, surfing, or diving destination.

Or maybe you still want to optimize where you live for business. That may be in the heart of the most inventory right now. Or where the most investors and capital is located, so that you can build personal relationships.

Destinations

Here are some of the trending destinations this year:

Florida: for the sun, homestead exemptions, and no state income tax

Atlanta, Georgia: for a fast moving property market, fun environment, with all four seasons

Detroit: Still one of the most affordable cities in the US, and a great community of entrepreneurs

Nicaragua: One of the last truly affordable countries left in Central America

Dominican Republic: Proximity to US, easy residency requirements, weather

Thailand: Affordability, weather, culture, and a growing fan base of entrepreneurs

Where will you live?

 

How does access to credit and various types of real estate financing affect recovery and growth?

Availability to capital and credit has proven to be critical for working through crises, fueling the economy, and growing the housing market. We saw this before and after 2008, when comparing US growth and economic strength to other countries, and we’ll see it again in the next few years. There may be additional challenges given the recent hurricanes and Equifax data hack, as well as the affordability crisis the US housing market has been dealing with. Access to these four types of credit may prove to be instrumental in where we see the best recovery and growth next.

Affordable Housing Loans

Fannie Mae has said it expects to blow through its lending caps this year, primarily thanks to backing more affordable housing loans for multifamily properties. While not all the units in these new and redeveloped buildings will be affordable rentals, and rents are sure to keep going up, we should expect more growth where these loans are being made.

Airbnb Mortgages

With housing costs so high, and short term rentals in so much demand, a lot may demand on where Airbnb landlords can operate and get specialized financing. We are already seeing some lenders begin to tailor programs to buyers of short term rentals, or like in Seattle; down payment assistance programs for those who will list part of their new homes for rent.

Hard Money Rehab Loans

Between the millions of vacant and foreclosure units in the US, and the millions impacted by the recent string of hurricanes, access to asset based rehab lending will be critical and pivotal in which locations are able to rebuild and bounce back.

Transactional Funding

Even with all the above, there is still a significant gap between the supply and demand. Those with best access to the supply may not want to engage in rehabbing or hold long term. Those that do want that may not have front line access to the best deals. This is where real estate wholesalers come in. With continued access to transactional funding they can connect the supply and demand chain, and help both sides in greater volumes, faster.

Keep an eye on the markets where these types of real estate financing are becoming available. They could offer some of the best opportunities, be first to rebound, and provide investors the best growth prospects.

 

Having a niche is important in real estate. There are many more to choose from than most think. Here’s 25 to consider…

Probate and inherited properties

Single family homes

Waterfront condos

Houses with docks and boat slips

Townhouses and gated communities

Cheap and affordable real estate

Green and sustainable homes

Smart homes and technology

High end luxury real estate

Cabins in the mountains

Beach area cottages

International properties

Multifamily apartments

Vacant lots and land

Commercial office buildings

Retail shopping plazas and malls

Mixed use properties

Industrial and warehouse

Income properties

Condemned units and teardowns

Urban micro-lofts

Pet friendly properties

Co-ops

Ranches and rural

Mobile and manufactured housing

Start by finding a good fitting niche for your talents, connections, and what you are passionate about. Dominate that. Become the expert and go-to resource for sellers and buyers. Then expand geographically or into other verticals which can help diversify your income streams, or help feed your lead funnel, or convert missed opportunities.

You can do this all under one brand, or use multiple brand names to really connect with prospects and elevate marketing ROI. There are plenty of choices, and you can mix, match, combine and overlay the above niches, and blend them with other things you are passionate about. For example; Affordable waterfront golf course townhomes in South Florida.

What’s your niche?

Authored by Best Transaction Funding. Where real estate wholesalers come for 100% financing, fast cash, and easy closings for highly profitable transactions. Get in touch and get your Proof of Funds letter so you can make more offers today.

 

Real estate wholesaling isn't a hobby. If you treat it as such, you'll probably never achieve your real goals. However, when you treat wholesaling as a business and you set solid goals, you'll have the ability to achieve them.

When you're new to wholesaling, you have to set proper goals to keep you moving forward. Wholesaling is all about finding deals, but there's more to it. Here's a breakdown for setting your wholesaling goals.

Your First Month

As a newbie to wholesaling, it's best to get your feet wet right from the beginning. Find one to three neighborhoods you want to target and start finding some buyers. You don't have to have a list of hundreds or thousands of buyers in your first month. Just find 5-10 quality buyers and you will be well on your way.

Goals for your first month include:

Choose 1-3 neighborhoods to target

Find 5-10 potential buyers

Get the phone number and email for each potential buyer

Your Second Month

You've set the foundation and it's time to start reaching out to motivated sellers. This month, you will start marketing and finding deals.

Goals for your second month include:

Do market analysis and choose your target area

Pull lists from online sources or go driving for dollars to find potential sellers

Choose your marketing methods (direct mail, bandit signs, internet, etc.)

Set up all the necessary details for your marketing

Send out your first mailer, place your first bandit signs and start marketing online

Reaching $100,000 Per Year

If you’re not making this much yet, a good goal for a new wholesaler is to reach $100K per year in income. Then just 10x that to hit your $1M mark. Start with the first two months above and once you have your marketing in order and you're building a buyer's list, you can move on to an actual income goal.

The best way to set your income goal is to figure out the average you will make from a wholesale deal. Then, figure out how many deals you need to do. For example, if you average $10K per month, you only need to do 10 deals to reach $100K.

Once you know how many deals are necessary, it's just a numbers game. Figure out your marketing conversion rate and how many leads turn into deals. Then, just market enough to get the 10 deals you need to make $100K.

Many new wholesalers make it harder than it needs to be. Set up your foundation in the first two months by getting your marketing going and creating your buyer's list. Then, as the deals start to come in, keep track of the numbers. This will allow you to set and achieve your income goals as a new wholesaler.

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.

Is wholesaling the better real estate strategy in 2017?

The real estate market is always changing. That makes it smart to have a good mix of tactics to ensure cash flow remains consistent. Fixing and flipping was made cool by reality TV. Yet, current and emerging market conditions may make things easiest for wholesalers in 2017 and 2018.

There are several dynamics in play which may make things more difficult for house flippers and buy and hold investors this year, and looking forward. This includes; rising interest rates, declining rental rates, high property prices, and limited access to credit for retail home buyers.

Data from Zillow and reports from local landlords suggest that rents in San Francisco have been falling sharply. Zillow also predicts property prices there are peaking and will decline later this year. Lower rents make properties worth less. That can also cause havoc for landlords who are leveraged and have loans to cover. At the same time some parts of the country are seeing sellers and agents prices properties wildly high. They are pricing properties based on Airbnb rentals, or may just be throwing listings against the wall and are hoping for the best. While capital may be plentiful for real estate investors, it is still really hard and unappealing for regular home buyers to apply for mortgage loans.

This means some house flippers may find themselves caught with no profit, especially if they are taking extended timelines to fix and flip, or wind up spending too much on rehab. In contrast, wholesaling can work in any market. And there will still be demand for prime property, providing it is priced well.

Just think about what is easier. To put a property under contract for $150,000, that may be worth $250,000 after repairs, and selling it for $199,000. Or taking 3 months and putting in another $30,000 plus in improvements? In this scenario wholesaling would probably still be more profitable. The market for the property priced at $199,000 is also going to be a lot bigger than priced at its full retail ARV. Wholesaling gives the opportunity to get in, out, and paid, fast, with the least amount of risk.

There will still be viable rehab and rental deals out there today, but wholesaling may provide a much needed tactic for ensuring consistent returns and income in the months ahead.

 

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.

These new real estate loans could help house flippers do more deals…

Capital sources are once again innovating and bringing out new loan programs. Some may be used directly by real estate wholesalers and house flippers. Others can be introduced to retail buyers and end investors to increase their ability to absorb new inventory.

Transactional Funding

Transactional funding has been publicly available to a broader range of real estate investors since around 2008. Yet, it is still seriously underutilized. Many investors are sitting on the sidelines, or are doing a fraction of the deals they could be, due to liquidity challenges. Transactional funding offers easy and fast access to 100% financing for wholesale deals.

Stated Income Loans

While transactional funding may provide the easiest qualifying of all loan products on the market today, it is short term money. A new variety of stated income real estate loans are emerging that could be ideal for helping experienced investors to get back in the game, and to enable active investors to expand their capacity and portfolios. These loans do not require tax returns or W2s, allowing for a faster and lower hassle approval process. Wholesalers should be connecting their end buyers to these financing providers to create more win-wins, and to scale deal flow.

Equity Sharing Mortgages

Lenders have gotten smarter. They may prefer the easy of lending and debt investing versus owning and managing physical assets. However, they also don’t want to miss out and leave money on the table. So, with equity sharing mortgages they are able to provide great financing terms, and get a piece of the equity appreciation as well. These loans may offer more attractive terms to investors, and can give them advantages of having an experienced and connected ‘partner’. Just be clear about the fine print.

Lines of Credit

More and more lending channels are ramping up their offerings of unsecured lines of credit. Lenders and private investors have trillions in capital to deploy this year, and they want it out there working. Unsecured lines of credit are ideal for rehabbers who may need more working capital, as well as the liquidity to jump on new deals while completing projects already in the pipeline. Again, the better wholesalers do at connecting their end buyers with these real estate financing sources, they more valuable they become, and the more business volume they can do.

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.

Mother’s Day 2017 is coming up fast. It’s an important day, that deserves real estate professionals giving some extra thought to. What can we do to really shine this year?

1. Don’t Forget Your Mothers

Don’t forget the mothers in your personal life. Your mom, grandmother, your sisters that are mothers, your children that are mothers, and all those other mother figures. Being a mother is real work. Like real estate professionals, mothers rarely get a fraction of the praise and thanks they should. Take a day out to spend some time with them, and spoil them.

2. Recognize the Mothers in Your Real Estate Business

Whether you are a solo Realtor or real estate wholesaler using a team of remote workers, or you are a CEO with thousands of square feet of physical office space and in-house employees, there are many mothers who are involved in your success, and the success of your clients. Maybe they directly work for you. Maybe they work at your favorite title company, real estate attorney’s office, or bank. There are so many hard-working mothers involved in our success. Make sure you show your appreciation. It could be an office brunch, flowers, gift certificates for a local spa, a day off to spend with family, or an all-expenses paid trip to Disney with their kids.

3. Remind Others

Use email, direct mail, and social to remind others about May 14^th. You’ll save a few people from forgetting about Mother’s Day. Happy mom – happy home. Happy homes mean your workers are more efficient and productive, tenants are more likely to pay the rent on time, and families are enjoying more upward mobility.

4. Help Struggling Homeowners

There are still thousands of mothers out there who are struggling to hold onto their homes, or to find somewhere to go. These are hard decisions when you have kids at home, or have worked a lifetime to build something to pass on. It’s not always easy connecting with and helping struggling homeowners. They been burned by so many others, so many times already. Just ask “how would I like my mother to be helped in this situation?” You wouldn’t want a good investor to give up on trying to help. You would want someone to make the effort, and help them achieve a good move.

5. Help Homebuyers

There are also millions of mothers struggling to put a good roof over their kids’ heads. In some cases, they just need a roof. But all deserve to be given a safer and healthier place to live, on terms that are actually sustainable. Others are looking for opportunities to invest to get ahead, so that they can actually spend time with their families, and give their kids great head starts. This Mother’s Day is a great time to help them. Send out the information they need, host Mother’s Day themed open houses, and provide unique experiences which really deliver value.

 

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.

Where can real estate investors find the money to flip houses this year?

The US real estate market is surging again. Home sales hit a new 10 year record in January 2017 according to NAR and Inman. Yet, it still takes money to make money. So, where can investors find the capital to get started, expand, and make the most of the opportunities?

Lines of Credit & Personal Loans

Despite all of the gurus proclaiming the ability to flip houses with no money and no credit, investors will find they run into expenses. They may find 100% financing for property deals, but there is still due diligence, gas money, and marketing. Personal or small business loans and lines of credit can provide essential working capital, and the flexibility to use it for everything from launching a real estate startup to rehabbing homes. Do expect lenders to demand a reasonable credit score, and normally an existing LLC or business entity to have already been set up for those seeking commercial funding.

Blanket Mortgages

For those who already own portfolios of income properties free and clear, or with significant equity a blanket mortgage can help. These mortgage loans can be used to leverage equity from part or all of a portfolio to bridge out and acquire more property. It provides liquidity to act as a cash buyer, with the simplicity of one set of loan documents.

Commercial Conduit Lenders

A new breed of mortgage brokers and conduits are setting up shop, and are aggressively marketing themselves to investors. They may offer lines of credit, blanket loans, and short-term fixed rate mortgages for rehabbing properties. Many now offer stated income loans. Most still expect significant skin in the game from investors, and often want to see a recent track record of successful acquisitions and exits.

Transactional Funding

Transactional funding lenders provide short-term funding for real estate wholesalers. This is typically 100% financing for back to back house flips. Often no appraisals, credit, or income verification is required. It’s fast and easy to get, and rates can be lower than hard money.

 

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.

Need to build your real estate sellers or buyers lists? Can Meetup.com help?

Meetup.com has been exploding in popularity on the web. Many are using it to cultivate new groups of real estate leads and deals. How can real estate wholesalers put it to work, and grow their businesses?

Meetup

For those property investors that haven’t used it yet; Meetup.com is an online platform for connecting with those with similar interests. It is a place to curate a group of likeminded individuals, and then meetup with them offline, in reality. Given that real estate professionals rely on making new contacts each day in order to fuel their businesses and incomes, this could be a beneficial tool to add to the monthly marketing and networking mix.

Get Out and Network

If you are thinking about using Meetup in any capacity a smart first step is to sign up for some other people’s meetups, and get out and visit them. There are meetups for just about everything. There are meetups for Realtors, tech entrepreneurs, foodies, fitness, charity, and just about anything else you can possibly imagine. Attending these meetups will give you insight into what others are doing that works well, or not. It is also the lower maintenance and cost way to leverage meetup, instead of trying to manage your own. This strategy can be just as powerful, and you can join any type of meetup and reach new prospects.

Start Your Own Meetup Groups

If you want to step up and take the lead, then starting your own Meetup can be a great idea. For around $20 a month you can host your own group on Meetup.com. This can be an indirect method of meeting prospects by making it about something other than real estate. Or it can be a real estate specific meetup, like a local investors club. Meetup will help connect you with people, but expect to do your own promotion on social media, locally, and to invest in creating a good experience for attendees. Use these get togethers to generate motivated seller leads, cash buyer leads, regular home buyer leads, and to build your team of local industry professionals and referral partners. Use regular gatherings to build relationships, educate, and to help others, and you can build a highly localized power list.

How will you use it?

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.

How much profit should you be making on your real estate wholesale deals?

Property wholesaler profit margins are one of the most commonly debated topics among new investors, rehabbers, and buy and hold landlords. So, what’s the right amount? How much is too much? How should wholesalers set their markups?

Some wholesalers may not make as much as they could on deals because they are intimidated about losing them. Sometimes end buyers are complaining that wholesalers are asking for way too much, and are just wasting their time. So how do you pick the right number?

4 Ways to Price Your Wholesale House Deals

Fixed Fee or Percentage

One way to choose is to pre-determine what percentage or dollar amount you are going to charge across all of your deals. It could be 3% or 6%, $1,000 or $100,000. Or more. It’s up to you. This can make it easy when screening potential properties to see if they match your criteria. However, one flaw is that this doesn’t always maximize your deal flow and profit potential long term as the market changes.

Profit Left to the Next Buyer

Again, you can choose a fixed dollar amount or percentage spread which you think if fair for you end buyer to make after they buy, fix, and flip or rent the property. Of course, every buyer is different. Some use cash. Some use very expensive hard money loans. Some can get rehab work done cheap. Others pay a lot for contractors and materials. Some can flip a property in a week. Others take over 6 months to complete a flip.

ROI on Your Time

As a real estate wholesaler you are providing a valuable service. However, unless you have a team you are still often trading your time for money. Make sure you are getting a fair return. What’s your time worth? How much time do you spend flipping a deal? If you just quit working a McDonalds for minimum wage, then making $30 an hour may seem like an awesome deal. If you just quit being an attorney or doctor making $500 an hour, then you’ll probably want to make sure you are earning $1,000 an hour as a wholesaler. Remember to factor in all the time prospecting, screening, negotiating, and marketing, and managing the transaction.

Filling Orders

Another way to do this is to simply fill orders. Take pre-orders for deals aka ‘reverse wholesaling’. Then go find a fit, and profit what you can. You may have end buyers who are happy with 20% returns on two flips a year. Others may insist on getting properties 40% below market value, or being able to double their money. Take the order, find the deals, squeeze in however much you can. This is a little more fluid when it comes to predicting your income. However, it can lower risk and waste. One downside is that you are effectively letting someone else set market prices, versus controlling them yourself.

Looking Forward

There are wholesalers who can make $100k per deal, and do 10 deals a month. Others might do 1-4 deals per month and are very happy putting $20k in their pockets. Some might land some whales and make a million on a very juicy deal. A lot of it depends on how good you are at finding and negotiating deals, as well as how you market and present the inventory.

One thing which is really important, and which many wholesalers forget is to keep an eye on the changing market. Prices and profit margins will change. Protect your income and industry but refusing to sell out too cheap, but give good deals if you want more business.

 

What do you think? How much do you charge? How much do you think wholesalers should markup deals? Let us know on Facebook and Twitter…

Want to do more real estate deals?

Who doesn’t right? For many investors transactional funding may be the key to doing more deals. We’re not just talking about boosting your deal volume over the next 12 months, but turning all those leads in your database and on your desk into deals this month.

There is a lot of noise out there in the mortgage lending space right now. Unfortunately, a lot of it just leads to dead ends, dead deals, wasted time, and frustration for real estate investors. So how can Best Transaction Funding Help?

Get Bigger Deals Done

Transactional funding can be ideal for getting those bigger deals done. Perhaps you are wary of taking on a big mortgage or rehab project, but the numbers on the deal work. Transactional funding can be used as ‘dough for a day’ to lock that property down and flip it fast. There are still lots of cheap properties out there, but would you rather make 50% profit on a $40k home or a $4M home?

Get Distressed Properties Financed

There are tens of thousands of distressed properties out there ripe for the flipping. Of course, many of them simply can’t be financed by traditional channels. This can be due to simple issues with missing appliances, worn roofs, old termite damage, or it could be critical fire or hurricane damage, foundation issues, or complete teardowns. Don’t leave these deals for the next guy. You’ll be kicking yourself when another investor makes a mint on them. You don’t have to do the repair work, or put up the cash to fix them. Transactional funding will let you flip them fast to rehabbers or cash buyers, and make a nice profit in the process.

Overcome Liquidity Challenges

It always seems like the best deals come along right when all of your cash is tied up in another deal, right? Don’t let that stop you. Best Transaction Funding offers up to 100% financing, including closing costs. This means you can keep marketing, churning out those deals, and bring in the profits.

No Limit Lending

Too many other lenders still have antiquated limits on the number of loans or dollars you can have out there on credit. At Best Transaction Funding it doesn’t matter. The more deals you’ve got the better.

 

Authored by Best Transaction Funding - 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.

There is a horde of opportunities out there for real estate investors this Halloween.

Zombie homes, vacant homes, and distressed properties are running rampant out there. There are still thousands of them. At the same time there is a huge appetite for investment properties and housing. Some cities still have tens of thousands of vacant homes, while investors battle over sparse inventory and the rental market and affordable housing inventory remains incredibly tight.

This means huge opportunities for fast moving real estate investors who get out there, take down some of these zombies, and recycle them.

The thing is that many distressed homes aren’t being publicly marketed. They aren’t on the MLS and they don’t have signs in the yard. Many end buyers either don’t have the know-how to find the owners and make viable offers, or they just lack the time and hustle.

Those investors that are motivated and put in the effort to take action and learn the tactics for finding and contracting to buy these properties have a lot to gain. According to RealtyTrac home flipping profits are up to new highs, and more investors are looking for rehab deals. With homeownership at an incredible low, and more millennials maturing to prime home buying age there is a strong and profitable resale market. Plus, recycling these properties can do a lot of good for young professionals and families and their communities. Real estate wholesalers in particular will find the timing right to do big numbers, and have a big impact.

Thanks to Best Transaction Funding you don’t have to be limited in deal volume based on how much liquid cash you have available right now. Using this transactional funding investors can find, fund, and flip ugly and even scary zombie homes to rehabbers, turnkey providers, and retail buyers fast, while interest rates are low.

These next few weeks are the perfect time to ramp up your business too. With Halloween comes plenty of seasonal real estate marketing opportunities from online content marketing to property tours. Make it fun.

 

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.

The latest data shows house flipping activity hitting a new high. But with all the extra competition where can real estate wholesalers get the edge and find the deals?

Mix Your Cardio & Scouting Properties

There are thousands of investors out there hunting for deals. Many are getting better and better at using technology to scout potential deals, and to be alerted to new listings. They are marketing more broadly and are sending a lot of blanket mail. Yet, many of the best deals can be hiding in neighborhoods right around you. Most are not listed on the MLS. Often the owners are not proactively looking for buyers. But they can be great deals. Get out there and find them. You can drive. Or you can go deeper by getting on your bike, walking, or running. You’ll get some extra cardio in, and may even get the chance to build more personal connections and relationships.

Note Investors

New data from DistressedPro shows that while foreclosure activity may be declining in most states, bank repossessions and mortgage defaults are still around twice as high as before 2008. Yet, not all are speedily making it to auction or are being remarketed publicly. Billions in non-performing mortgage loans are being sold through back channels, and to note investors. Find these players and offer your help when borrowers just aren’t going to be able to stay on track.

New Real Estate Agents

Thousands of new real estate agents are getting into the game. Very, very few get started with any idea of what they are doing. Training, education, and support is minimal. Most often they face intense competition from their coworkers in their own offices. That leaves them few places to find help when they get stumped or are trying to figure out what to do with leads. Help them out. Make sure they know you are there to buy their good deals, and set them on the right track to find what you are looking for.

New House Flippers

House flipping has become a new craze spurred by endless ‘reality’ TV shows. Everyone wants to do it. Some are making incredible spreads by fixing up and flipping homes. Yet, data from RealtyTrac shows that turn times are reaching new highs at an average of over 180 days. That suggests many are getting stuck. They are having a hard time turning around properties, and many are running out of funds in the process. Be there to take those deals off their hands, and bail them out when the numbers make sense.

 

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.

Labor Day is here and it reminds experienced real estate wholesalers to leap into action…

There are many ways in which Labor Day brings important opportunities for property wholesalers. Here are 5 to put into play this 2016 Labor Day weekend, and over the other coming long weekends the rest of this year.

Holiday Sales

Labor Day sales offer the opportunity for real estate business people to grab supplies and even take advantage of deals on services at a discount. Use this opportunity to make your budget go further.

Real Estate Marketing

With more prospects at home and with more prospects with free time to read marketing messages this is a great time to up your game and make those connections. Write those contracts and take advantage of the current market.

Open House Events

This is the ideal time to host open house events. Tailor them to your ideal prospects. This could be real estate tours, cocktail parties, charity fundraisers, of family BBQs.

Teach Your Kids About Real Estate Investing

This is a great time to pass on your knowledge to your kids, and equip them for a successful life. Teach them what to look for in homes, how to collect information from FSBO signs, and some basic DIY skills.

Celebrate

Work is a gift. It’s great to be able to work in real estate and invest in it. Millions may never have that opportunity. Take time off to celebrate that, and recharge before hitting it hard again after the holiday. Set a good example for those around you of how to work hard, and take care of yourself, and to seize these moments to enjoy quality time with those you care about.

 

Authored by Best Transaction Funding - the leading source of transactional funding for real estate wholesalers, where 100% financing, and saying “Yes” is what we love doing all day long. Request your Proof Of Funds Letter today!

One of the top bankers in the US has said not to put new money into the stock market. So what do we do now?

While the world’s financial markets continue experience the rollercoaster ride kicked off by the Brexit, former CEO of Wells Fargo Richard Kovacevich told FOX Business he didn’t think people should be adding new money to the market right now. So if such a high profile and experienced analyst is taking this stance, what should the rest of us be doing with our money and investments?

At the same time bonds have fallen to terrible and even negative yields, gold prices have been pumped up by fear, and tech stocks have been looking frothy for quite a while. How do we keep making money with 3 or 4 of the major market options overvalued, ripe for a correction, and potentially delivering negative returns?

Wells Fargo’s former CEO says he’s piling up cash on the sidelines while waiting for a dip in prices. That’s not a bad strategy if your only alternative is to invest in depreciating assets with negative yields. Fortunately, there is also real estate to consider as an investment, and many are. Even if fluctuations happen in property prices in the future house flippers can still make money by getting in and out at the right prices, or locking into rental income which can provide steady yields regardless of the rest of the market.

So what to do? Keeping cash for value opportunities may be wise. Of course inactive cash also devalues by itself. House flippers and rehabbers can beat this by putting money in to value add deals and getting out again quickly. Real estate wholesalers can feed both rental property investors and rehabbers by using 100% financing from Best Transaction Funding, and get in, out, and paid with low risk, and massive ROI. Any cash that does need to be put to work can then be spent on marketing and growing the business to increase volume and revenues.

How will you invest?

 

Authored by Best Transaction Funding - the leading source of transactional funding for real estate wholesalers in the US.

Smart real estate wholesalers look for a niche to dominate, and they stick to it.

The starting point for big wealth and incomes may be thinking really big. You want to be the Steve Jobs, Bill Gates, Mark Zuckerberg, or Donald Trump of real estate. To have a big empire and all the riches that come with it. But once you dig into these biographies you find that their success really came from, and often still relies on owning one niche. The same is still true of Google. Sure Google has Gmail and a suite of business apps, great maps, and even driverless cars. But all of that is built on dominating Google’s niche in search. Owning a niche is also what has turned Airbnb, Uber, and Instagram into multi-billion dollar companies. So if you want to go big in real estate – start small. Choose a niche and own it.

There are almost infinite niches to choose in real estate, and plenty of overlaying filters and hybrid choices. Trump has luxury condos. Warren Buffett has mobile homes. Sterling White has turnkey properties in Indiana, etc.

One of the biggest temptations when things aren’t going as fast as investors would like is to go broader and to imitate the competition whom they think is doing better than them. Note that most aren’t doing as well as they make out. And you don’t know if any of their individual strategies are really working for them or are producing great net ROI. Just look a Zillow which at least had be losing tens of millions of dollars a year using phone sales to sell online marketing. 20 plus year industry veteran and speaker Sam Sadat says that the truly rich think differently than everyone else, and one of the ways they do that is looking to create more cash and wealth, and riches in niches.

If anything you may want to get smaller in order to get bigger results. Once you have dominated the majority of the business, referrals, and web traffic for that niche, and only then – consider expanding.

Then in addition to wholesale houses you might offer turnkey properties or even jump into development. You might expand from your city to other key markets which are ripe for flipping and which turn on a different timeline in the real estate cycle to yours.

So what’s your niche?

 

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.