Rising Interest Rates Mean Time To Up Your Real Estate Wholesaling Game
How do real estate professionals and investors need to prepare to stay ahead of rising interest rates? Why is wholesaling the answer? And what needs to be done to ensure the ability to survive and thrive in the new landscape ahead?
While creating a sense of false confidence, and lulling many real estate wholesalers and others into inaction, rising interest rates will come. It is inevitable. In fact, Brett T. Immel and Preston M. Despenas of Chicago based Growth Equity Group recently told Realty 411 Magazine that rising interest rates are the most significant threat to all investors and businesses today.
Rising rates mean rising costs on everything we buy and use. Perhaps most significantly this will mean rising costs on mortgage leverage, rehabbing, and real estate.
The Need to Ramp Up Your Real Estate Wholesaling
With the costs of fixing and flipping properties rising, and holding costs escalating for buy and hold investing most investors will find that they are well served by upping the percentage of their business and income/ wealth building that comes from wholesaling.
Wholesaling will be the least hard hit by rising interest rates, and providing wholesalers are operating efficiently they should be able to preserve their profit margins, if not see them rocket thanks to rapid home price increases.
However, in order to scale wholesaling as a percentage of income and wealth building or business volume individuals and organizations need to establish and concrete their position in the market now. Not when everyone else is trying to get in later.
Let people know what you are doing, recruit lead generators, and lock up strategic partners in exclusive arrangements. Use your website, social media, email, and local meet ups to accomplish this.
Essential Efficiency
Still, as lean as wholesaling can be when it comes to hours required and operational costs, especially with all the perks transactional funding offers, wholesalers do need to strive to achieve maximum efficiency. Those with the best profit margins will always be best positioned to come out on top and stay there.
This also means being able to continue to offer the most attractive deals to end buyers, and ensures they are viable deals for rehabbers and buy and hold investors. Think automation, using transactional funding to act with the power of a cash buyer and close fast, hiring better quality talent, creating systems, and perhaps even putting the icing on the cake by securing financing sources for your end buyers so that they can make offers with confidence.
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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