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SPOTLIGHT DEAL: 100% Funding On A $735k House Flip

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on Thursday, 23 June 2022
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We are excited to spotlight another successfully funded house flip for one of our great investor clients.


This month one of our investors executed a fantastic wholesale deal. Generating a $235k gross profit in just one day.


Even better, we were able to fund 100% of their deal!


Deal Spotlight

Imagine if you could do deals like this every day…

 


Purchase price: $500k

Funding amount $508,500

Resale price: $735k


Property type: SFR

Location: Southern California

Rate: 1.75%

Time to flip: Same day closing


Here’s how it went down on the A to B transaction, and then the B to C transaction on the same day.

 

 


Funding You Can Count On When You Need It

While other real estate lenders out there may be pulling back, tightening up, and raising their rates, Best Transaction Funding is still here, funding deals, and at our same great rates.


Our transactional funding for wholesale deals still provides 100% of your funding needs for rapid deals.


You don’t even need an appraisal or good credit. It doesn’t matter whether you are a full time self employed investor, or just got laid off from a big tech job and are diving into real estate. We’ve got your back.

 

We love funding big deals too. Bring us your wholesale deals for funding of $500k or more and see how we can help.


You can request your Proof Of Funds on our site right now, and go out and land those deals today.


Get Featured

Do you have a great deal story you’d like to share?


If you’ve recently funded your deals with Best Transaction Funding, or have a closing coming up, and would like to be featured, let us know.


You can inspire others with your success in this space.

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Real Estate Flips To A Buyers’ Market

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on Wednesday, 01 June 2022
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Few saw the change coming this fast. Yet, in just a matter of weeks it appears that the North American real estate market has substantially shifted in favor of buyers.


This is great news for real estate wholesalers. It also means that those who are still stuck holding properties need to move them very fast.


Home Sellers Are Slashing Prices

We’ve fast gone from incredible bidding wars, with even big investment firms proudly paying 50% over market value for properties, to sellers almost competing just as fiercely in slashing their asking prices.


In Boise, Idaho 40% of home sellers have recently reduced their prices. Followed by around 30% in New Orleans, and Cape Coral.


Home Values Are Coming Down

Of course, in turn, sales prices and home values are coming down along with that. Some cities are already reportedly seeing them down 10% to 15%. For example, in Kalamazoo, MI.


Similar trends have been reported in Canada, where the market has also flipped, and recently hot markets like Waterloo are down by 8.5% as of April. With economists expecting them to drop by 20%.


It is true that these are reductions from very lofty highs. If the Fed can manage a soft landing it could just mean a slowing of growth, without an absolute crash.


Though JP Morgan Chase’s CEO just warned that we are facing an imminent financial hurricane.


What It Means For Real Estate Investors

Those still holding rehabs and speculative flips need to exit them fast. Or they face being caught underwater, with dead weight that is dragging them down.


Of course, most experienced investors have been waiting for this moment. They’ve been waiting for asset prices to come down, and the numbers make sense again.


It’s time to get bidding, and scaling. Just at the right figures, which price in the drop. Then wholesale them fast enough not to get caught with any further declines.


Obviously, this is best done by filling pre-orders from other investors who have cash and are ready to buy them immediately once they are under contract.


While capital markets have been flush, and business and mortgage lenders eager to put money to work out there, rising rates, and fear of a contraction could change that.


This makes leveraging transactional funding for quick in and out deals, with low risk an even more appealing option as we look ahead.

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5 Ways To Find Real Estate Deals Now

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on Tuesday, 01 February 2022
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Reselling properties seems to be a slam dunk for real estate wholesalers and flippers. Tens of billions of dollars in capital, and millions of buyers are looking for house deals, and rental apartments. So, where do you find more inventory to serve them and scale up your investment business?


Networking

Now that the worst of the virus seems to be behind us for now, and people are eager to get out and mix in person again, this could be the time to kickstart your networking.


This can be casual networking as you go about your daily life. Or it can be at professional networking events. If there aren’t any happening near you, maybe you can start your own.


Expand from the usual real estate investor and agent circles. There may be attorneys with landlord clients who really want to sell. Or corporate executives who need to restructure their real estate, or help employees with their housing situations.


Aged Leads

Some of the most successful high volume real estate wholesalers find that 90% of their deals come from the follow up.


Every lead can be a deal. It is just a matter of being there and connecting when it is the right time for them. So, consider a new campaign targeting your old leads.


Update your database and CRM. Try email newsletters, text, and other contact methods you have to reconnect with them.


Mortgage Lenders & Note Investors

This is a space which has really exploded in popularity over the past couple of years. Of course, that doesn’t mean that every new lender and note investor is being successful. Or that every one of their loans is performing. These can be great relationships for tapping into a regular volume of deal flow.


Direct Mail

While people may be emerging from lockdowns again, travel is still very limited. Especially ahead of peak summer travel season, this may be time to hit prospects with direct mail at home.


Marketing seems to be coming full cycle again. The FTC says consumers lost $770M to social media scams alone last year. People are quickly losing trust in online marketing. Showing up in the real world could help you stand out. Just don’t do those cringeworthy old postcards.


Be creative and unique, and mail something that will stand out.


Create A Niche Destination Website & Blog

The bulk of the real estate activity now is moving away from restrictive and dense big cities and to new areas. Why not create a destination website and blog for movers and investors exploring your area for the first time? This could be one of the easiest ways for you to stand out online.

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4 Ways To Wholesale Houses Smarter In 2020

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on Thursday, 10 September 2020
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This is one of the best phases of the real estate market for wholesalers. There is a strong mix of distressed properties and motivated sellers, as well as demand from buyers looking to relocate.


New wholesalers should find this a fantastic time to get in the game. Experienced investors should be scaling their businesses fast.


Still, no one wants to get caught holding dead weight properties. It doesn’t take many of those to pull you down and eat up your other profits. So, here’s how to be more confident in taking on deals, how to find more of them with less competition, and how to lower your risk and do more at the same time.


Build In A Downside Cushion

Most experienced investors started doing this the minute that COVID-19 hit. While so far the US housing market seems to have kept going up, with no lack of demand, there appears to be a lot of financial distress and defaults happening under the surface. There’s no telling when it will pop. Though if you build in a little extra cushion to your deals, then you should still be able to exit profitably, even if prices come down 10% overnight. This will also help in case mortgage lenders start backing out on your buyers at the last minute, or are cutting loan amounts to account for declining markets.


Check Closed Sales

At first glance the market seems to be incredibly strong. Listing prices are skyrocketing, and if you throw up a house listing ad on Craigslist you are bound to get a lot of messages, calls and even showings.


It is vital to differentiate between the lookers and pending sales versus how many transactions are actually closing. Check out the latest closed sales data. What are the real prices and any contributions or other adjustments that alter the net sales price?


Be sure you are pricing your offers accordingly. It is also worth prescreening buyers and compiling a list of those who are qualified, so you have them ready to go in advance.


Look For Aged & Expired Listings

In spite of how hot the media, Realtors and other investors say the market is, many listings have still been sitting on the market for a year or more. Many investors have been holding dead weight properties for at least that long. Big liabilities which cost them money every month.


Sellers can feel spoiled for choice when they first list and get lots of lookers. None of those deals may materialize. Or they just get burned out from talking to too many buyers and hosting too many showings, without a closing.


Then after a few weeks those listings get ignored. They are buried under all the new ones, and no one sees them.


This is a great time to go back to older listings and expired listings, while owners may be refreshed and yet more motivated to unload their homes to any true cash buyers.


Use 100% Financing

You want to go fast during these times. Don’t miss out on all the opportunities. Of course you don’t want to take on extra risk in uncertain times either. Using 100% financing and transactional funding is ideal for this. With no skin in the game, and deals already sold before you buy them, not only are you looking at pure profit plays, but no risk to your own capital.


Many other lenders may be cutting back, but Best Transaction Funding is still here. Ask about our VOD service today so that you can get out there and make more offers.

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Pricing Wholesale House Deals As The Market Changes

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on Thursday, 02 May 2019
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How should real estate wholesalers be pricing houses as the market changes?

There are a lot of rules of thumb thrown around about how much wholesalers should offer on homes. The truth is that there shouldn’t be any hard rules. This is a factor that must change over time. If you’ve been bidding 40% of ARV over the past few years, your deal flow has probably been pretty thin. If you were still bidding at 90% or 100% in 2006, there’s a good chance you got stuck with some properties you couldn’t resell.

Price trends are different all over the map too. They may already be in deep dive mode in some cities and neighborhoods already. Others may keep going up for a few years. So, be wary of hard rules.

Be flexible. Be ready to change your offers based upon:

  1. Competition

  2. Direction of the market

  3. Who your end buyers are

There are wholesale buyers and house flippers out there who claim to be offering near market value. Some might get away with it. Some are able to do it for now because the are making money on deals in so many different ways. Though you have to be careful not to get stuck with a stable full of houses that you can’t get rid off. Expect that scenario to take down some very big real estate tech startups in the near future.

If you are buying at the top of the market, there are repairs to do, prices are down 10% and heading down another 10%, wise investor buyers aren’t going to want to be in for more than 70% of ARV. More likely 50-60 percent of ARV. As a wholesaler you may see deals go even cheaper as more foreclosure inventory mounts up.

Of course, having no income is a huge risk too. If there is a lot of competition, you will have to bid aggressively to keep deals flowing. Fortunately, in hot markets you may also be able to flip faster and for more to other investors (landlords and flippers). They may still be willing to pay 90% of ARV or more. You still need to be under that to make a profit.

The most important factor is really going to be knowing who your end buyers are, and who they are going to be when you are ready to close on the B to C side transaction.

Are they house flippers using hard money? Buy and hold investors using cash and retirement funds? Big real estate funds and tech companies? Or retail home buyers needing high LTV home loans?

Buy and hold investors need to make sure they can cash flow, even if rents float down a little. Use the 1% rule as a very rough rule of thumb. That means a $100,000 property should rent for at least $1,000 per month.

Retail buyers may be facing more challenges ahead as mortgage lenders tighten underwriting to reduce risk exposure. We’re already seeing that with government loans. Expect LTVs to come down as lenders identify declining markets. Your buyers will need to be those who have some cash for a down payment, and may be willing to come out of pocket above the appraisal.

How much are you offering on wholesale deals relevant to ARVs today? How are you pricing in downward pressure on prices or surges in competition?

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Real Estate Wholesaling: How To Find The Right End Buyers In 2019

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on Thursday, 27 December 2018
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Ready to make 2019 your biggest year in real estate wholesaling so far? It’s all about finding the right end buyers for your deals.


Properties are still plentiful, and the rumors are that there is a lot more inventory coming onto the market. As the cycle continues to turn that is likely to mean many more motivated sellers too. With 100% financing for wholesale deals from Best Transaction Funding, there are really no limits to the amount of volume you can do. So, who is able to do the most deals in 2019, and who can be in and out and paid the fastest is really all about lining up the right end buyers.


So, who are the end buyers in the real estate market in 2019?


Individual Cash Buyers

Overall there may be fewer cash buyers in the housing market in 2019. After years of purchasing homes and investment properties for cash, many have locked up their liquidity in equity. However, do expect more new mom and pop investors with retirement funds and who are cashing out of the stock market who can afford to pay for more affordable properties in all cash. Then there are many who will be inheriting their parents wealth and homes to cash out as well.


Investment Funds

Investment funds are still hungry for real estate deals. They have a lot of capital and must deploy it. One of their biggest challenges right now is putting that money to work. If you can provide bulk deals, then they may snap them up for cash as well.


House Flippers with Specialized Financing

One of the biggest challenges wholesalers perceive about flipping properties to those that need financing is getting through any inspection and condition hoops demanded by mortgage lenders. However, those flippers using one of today’s more modern flip lenders or private lending companies normally won’t have those issues, and have been enjoying high LTV financing. Advertising properties for only cash buyers will mean missing out on this bigger and highly active group of end buyers.


Boomers & Generation X Home Buyers

On the retail resale side boomers and Generation X home buyers could be among the most active in 2019. They have the credit to get loans and many have the down payments. Many have been waiting on the sidelines for a decade for house prices to soften up and are now eagerly looking for deals. Millennials are forecast to be the group which takes out the most mortgage loans in 2019, yet half don’t even have $1 for a down payment and closing costs. Only 10% have much saved. So, it may not be wise to bank your own income on serving millennials alone.


In conclusion - there are many great opportunities in 2019. It’s all about lining up the end buyers, and promoting to them in a way that connects. Who will you be wholesaling too?

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Investing: New Record Home Equity Levels Could Spur Buying Spree

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on Thursday, 25 January 2018
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New record levels of home equity could spur a new real estate buying spree this year.

According to Freddie Mac US homeowners are enjoying a new record high level of home equity. Freddie Mac puts this at close to $14T as of last year, and only growing. What will the impact be for the real estate market and investors?

Black Knight Data & Analytics says that US homeowners have at least $5.5T in tappable home equity. That’s without them having to break the 80% LTV mark with home mortgages, and leaving a nice 20% equity cushion in their homes.

This makes home equity loans and HELOCs one of the biggest loan trends this year. It is going to be one of the saving factors for banks and conventional mortgage lenders. Expect them to compete heavily to make these loans through 2018.

In fact, CNBC reports that homeowners have already been tapping into billions of dollars of their home equity through new loans and lines of credit. Billions have been spent on remodeling, and investing in stocks and even bitcoin. A lot is also going into real estate.

This sizable equity position puts homeowners in a great position for selling their homes, and buying new ones while interest rates are low. For some, this will be downsizing and keeping the change. For others it will be moving up. Many could use this cash windfall to invest in real estate.

All real estate investors need to be aware of this situation and trends. It is a huge opportunity not to be missed. Educate and make others aware of the home equity and finance options they may have. Let them know about private money lending opportunities for funding rehabbers, or rehabbing homes and loaning to rental property investors. You may even want to get them on new lists for marketing your real estate opportunities so you can sell deals to them, or partner with them.

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7 Ways For Your End Buyers To Fund Deals In 2018

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Successfully flipping real estate deals in 2018 relies a lot on finding end buyers with the financial means to purchase properties. The more that flippers and wholesalers can help prospective buyers find and connect with financing, the more deal volume to be done, and the faster they can be flipped.

Here are seven ways your flipper, rental property, and retail buyers can fund their purchases from you this year.

IRAs & 401ks

There is a lot more awareness of the ability to invest in real estate through self-directed retirement accounts today. Others still need to be turned on to the option. Though many more may begin to use these account options as the stock market continues to inflate and stocks become more expensive.

1031 Exchanges

Some US real estate markets appear to have matured, as have some individual investments. By using a 1031 exchange, investors can acquire your deals, while deferring tax liability on their gains.

Private Lending

Investor buyers without enough of their own cash and capital can find that individual private lenders are still the best option for financing. These lenders can be far more aggressive in terms and loan amounts, and are typically far faster and easier to work with.

Hard Money Loans

These loans are great for those who don’t want to deal with the hassles of conventional mortgage loans, or may be buying properties with repair needs that fall outside of conventional underwriting requirements.

Rehab Loans

Whether from investor specific lenders or the FHA 203k loan, there are great funding options for acquiring houses at a discount that need some repairs or updating.

Low Down Payment Loans

While investor loan LTVs have risen to 90% and even 100% in some cases, regular home buyers are also finding more and more low down payment options as well. This ranges from government loan programs like USDA and VA loans, to those offered by mortgage lenders like Flagstar which can be combined with local down payment assistance programs.

Seller Financing

Seller financing is still one of the best ways to ensure fast resales at maximum resale prices. That may be a low down payment large first mortgage, or carrying a second mortgage loan.

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Is Your Real Estate Agent Helping Or Hurting Your Sale?

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Are real estate agents really helping or hurting investors’ efforts to sell homes?

Many property investors and regular homeowners simply aren’t aware of how beneficial or harmful Realtors can be in the mission to sell their properties. How do you know if yours is doing their job? How do you spot the good among the terrible?

The Issues

Just as with investors, not all Realtors are perfect. But, there are great ones out there. They can offer a lot of value to those flipping houses, restructuring rental property portfolios, and searching more homes to buy and wholesale. Those that fail to operate ethically, don’t have the hustle, or simply are not tuned into current trends can really hurt the sellers they represent, and be a major roadblock for buyers.

Unfortunately, some agents still hold out on presenting offers; either to wait for the one which offers them double commission, or because they don’t understand them. Some are just slack at returning inquiries and following up. Others don’t have the motivation and hustle to try and make deals work and make the most out of every lead.

This doesn’t serve anyone well. It can result in properties rotting on the market, owners losing homes or failing to get the most money in a timely manner, and it can choke the pace of the market too.

What to Look for in an Agent

To beat the above issues real estate investors need to select the agents they work with carefully. Don’t just hit Google or go based on who has a lot of yard signs out. Don’t base the choice on years in business either.

Instead, look those you can build a relationship with. Those that put values and service first, those that are hungry and active, and those that can answer questions about quirks in the market or can find out fast.

Test them. Do they answer calls on their properties fast? Do they take offers and try to make them work? Do they know the requirements of local associations, building codes, and mortgage lenders?

Always do a little mystery shopping before selecting an agent to help you. Then if you list with them, do it again. See how well they are serving potential buyers for your property. If they aren’t presenting you offers, responding, or being courteous, you may have a case to fire them and find someone better.

What have you found is most and least important in choosing an agent? Let us know your favorite investor friendly agents around the country on our Facebook page

 

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

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Gaps In Real Estate Data Creating Opportunities For Wholesalers

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Are gaps in real estate statistics creating more opportunities for property wholesalers?

Being equipped with data is good. At least if the data is good. Billions have been spent on big data. Yet, especially in real estate, the numbers can be misleading. Those with access to good information and who know the market can benefit, while helping to educate others.

Real estate stats typically lag by a couple of months between collection and being published. Sometimes it’s three months or more. These numbers are also often revised backwards too. And we all know that even some of the biggest and best funded real estate data providers are horribly inaccurate. This can be compounded by the media who is able to twist and filter the information to make clickable stories.

Right we are experiencing a unique moment in the market. Things seemed to be cooling down and heading for a dip last year. People were pessimistic about the market. Now we are in a new environment which is rich in optimism. However, this lag in data, coupled with seasonal data glitches has some buyers waiting, hoping sellers will cut prices, and some sellers being told by their agents that they should cut prices.

We’ve recently seen the Dow Jones hit a new record of 20,000, Warren Buffett make a $12B investment, and mortgage lenders eagerly stepping up to fund more deals. With the exception of San Francisco, Zillow is still pretty bullish on its outlook, and that home prices will mostly keep rising in 2017. The latest Wells Fargo and National Association of Home Builders index shows confidence is now the highest it has been in at least a year.

So, bolder and more positive real estate data is likely to show up soon, to reflect current purchasing sprees. Then sellers and buyers will be more aggressive. However, this current gap may give wholesalers an opportunity to get in and pick up well-priced deals before that happens, and to flip houses in markets they want to exit.

What will you 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.

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The Investment Property Mortgage Landscape in 2015

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What does the mortgage landscape look like for investment property loans in 2015?

While Bloomberg Business notes that mortgage underwriting is becoming “incrementally easier” in 2015, the feds have opened up the gate to begin raising interest rates. These factors will have some impact on real estate investors as they evolve and grow. But for now the most important question remains “what loans are available for financing investment properties?”

Transactional Funding

Best Transaction Funding continues to fill the gap for property wholesalers. It provides 100% financing for quick flips. Normally without any of the credit, income, or asset demands of other loan types.

Find out how transactional funding works here

Hard Money Loans

Best Transaction Funding will soon be funding hard money loans from 1M+ (minimum) for select, serious, and experienced real estate investors with solid deals.

Hard money loans offer asset based financing for those deals and transactions that don’t fit the transactional or conventional loan model. They provide fast funding, without the hassle of traditional investment property loans from conventional banks and lenders. They can be great for new acquisitions, rehabbing, and refinancing.

Blanket Mortgage Loans

A variety of new blanket mortgage lenders and loan programs have emerged over the last two years. These programs can help investors with bulk property purchases, may act as bridge loans to unlock pent up equity in existing portfolios, and may streamline overall debt financing for buy and hold investors.

Private Money

Private individuals continue to be keen to put their money to work in real estate deals. For now they can offer better terms and easier lending than conventional lenders. The downside can be the extensive amount of work and time required to line up these relationships and financing. There may also be a substantial pivot in this trend as other lenders become more competitive in 2016 and beyond, and as they can obtain high yields from CDs.

Leveraging IRAs

Tapping IRAs and other types of retirement accounts to fund real estate deals has become increasingly promoted among the investment community. Self-directed IRAs do have great advantages. They can even be used in tandem with private money, transactional lending, and hard money. However, investors should recognize that touching the proceeds of these transactions might hamper their tax benefits. Highly active flippers should also consult their tax professionals to see exactly what the tax ramifications are for them.

Conventional Lenders

Traditional banks and mortgage lenders still have a lot of catching up to do. This is particularly true when it comes to LTV, paperwork burden, and speed. More exotic loans are making a comeback, but these lenders are rarely of benefit to most investors in the current market.

Summary

Investment property financing is still plentiful for those that know where to go, and work with the best lenders for their investment strategy. Whether, and how fast main street banks will be to catch up will be to be seen.

Make sure on our email notification list for first to know of new loan programs and features!

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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The Best Places To Live For Real Estate Wholesalers

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on Wednesday, 18 February 2015
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Where are the best cities and neighborhoods for real estate wholesalers to live in 2015?

A recent thread on popular online real estate forum Bigger Pockets raised the question of why investors choose to live where they do (if they do), and why?

Top Cities, Myths, and the New Economic Landscape

There are a variety of indicators to follow for property wholesalers that are considering relocating. This might include where the cheapest homes in the US are, following the claims that the massive pool of today’s millennial buyers are flocking to dense urban living, or tracking the markets that check all the boxes of what home buyers say they really want in a home today. Then there is the question of whether real estate investors should relocate to destinations that appear to promise more growth. For example; RealtyTrac’s nod to Jacksonville, FL or San Francisco, CA for the largest house flipping profits and spreads. Or to NJ where RealtyTrac reported the highest percentage of foreclosures at the beginning of 2015.

We have lists like this from RIS Media laying out the ‘Best US Markets for Buying Residential Rental Property’, and Forbes’ list of ‘America’s Fastest Growing Cities 2015’. There are also lists of cities for hot jobs, though as we’ve seen with the recent oil price crisis; trenches of the country relying on a single industry can boom and bust fast.

So where should wholesalers live?

What Wholesalers Do & Don’t Need in a New Home

Do real estate wholesalers need to be in the midst of high distress cities and neighborhoods, or in the pockets that are favorite with VC money, and where mortgage lenders prefer lending?

Being in the middle of the action, and where the money is can have its perks. However, technology has also made it possible for real estate wholesalers to operate completely independent of location. If you’ve got internet and a decent cell phone signal you can flip houses from anywhere.

So as tech continues to develop and internet gets faster the best places for property investors to live might be where they do their best work, and enjoy the lifestyle the most.

For some this might mean a city center condo for doing business during the week and then retreating to a rural estate for the weekend. Others might set up in the burbs where the weather is better year round and living costs are lower thanks to cheaper real estate and tax breaks. This could make inspirational cities like NYC, new tax havens like Puerto Rico, and vibrant sunny escapes like South Florida standout.

Where will you move?

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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Flipping Tiny Houses

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on Wednesday, 16 July 2014
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Should real estate wholesalers jump on the tiny house movement and flip micro lofts and apartments?

There’s no question that small is the new big in many real estate circles. This may be far more to being priced out, and out of credit, than a new highly desirable home feature, but tiny houses are in. There is even a new reality show trying to nurture the art of living smaller – Tiny House Nation. The big question is whether real estate investors should get into flipping this ‘hot’ commodity?

Tiny houses are cute, they’re cheap, and they may be a profitable product line for some. However, they are not without their challenges. For a start there are certainly a number of government and utility agencies that are none too happy about a new generation living without their services, skirting building codes, and more.

With the best transactional lenders providing almost limitless capital to wholesalers, and landlord friendly mortgage lenders opening up the money gates to fund rental properties some investors may be under the impression that everything is a great buy, and easy flip today.

Aside from the code and title challenges of attempting to buy and resell tiny houses, there is perhaps an even bigger issue many are completely aware of. Even if everything else is great, most lenders won’t only shun small balance mortgage loan applications; they won’t dream of funding such small units. Most are unaware of these underwriting conditions because they rarely come up, but many lenders will have minimum square footage requirements.

There may be some exceptions for those really set on trying to work this niche. Where small condo units or homes are standard, and there are plenty of comps, some local banks may finance them. Then there are hybrid homes such as those being manufactured by Mesocore which are up to code in the areas they have been built, and offer all the benefits of green and affordable living, but are real homes. And they are at least 1,000 square feet.

 

Tiny house architecture is cool, but be aware that flipping tiny houses might be far more challenging, and less profitable than many hope.

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Is Your Lender Poaching Your Deals?

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Are mortgage lenders poaching your deals and leads?

This is an increasing issue, especially with more competition among real estate investors, mortgage originators and for locking down great deals on distressed property. This is becoming a major problem when those directing private funds are also involved in flipping houses or rehabbing and renting them, as well as for the greedy few wanting to make more money on each loan they make.

You do all the leg work and research for them, and they essentially get not just free leads but all their due diligence done for them too.

Have you ever shopped a deal for financing only to find it was sold or the seller backed out when you went back to them? Or as a broker found your client went with someone else? Your deal could have been poached!

Why work so hard and then have those you thought were there to help rob you of the profits?

Transactional funding remains the best way to fund your flips and wholesale deals. It’s fast, less expensive than hard money, a whole lot easier to get your hands on, and can make a ton of difference to the bottom line and net profits.

At Best Transaction Funding all we do is loans. You do what you do best in finding and flipping houses. While we stick to what we do best; funding loans.

Building relationships and preserving our reputation are our top priorities. You’ll find no conflicts of interest here. Try out the Best Transaction Funding difference today…
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