Time To Step Up To Flipping Luxury Homes?
by blogger1
on Saturday, 10 August 2013
BestTransactionFunding
blogger1
Guest has not set their biography yet
User is currently offline
Is it time for more wholesalers to step up to flipping luxury homes, rather than scraping the bottom of the barrel for homes selling for less than a great night out on the town?
As competition in the U.S. residential housing market has increased many investors have picked up shop to head off to hard hit foreclosure areas with more inventory like Miami, Detroit, Atlanta and Chicago.
This wholesaling strategy is working out well for many, but others are considering the pros of simply stepping up to flip higher end homes. While attractive, some find this a daunting prospect which they perceive as bringing additional challenges, especially when dealing with luxury home buyers and sellers.
So what are the real benefits of wholesaling luxury houses and what differences really exist that can bring new quirks to the game?
5 Benefits of Wholesaling Luxury Homes:
1. Finding a less competitive niche without looking out of the area
2. Far higher net profits for the same amount of work
3. Prestige
4. Need to do fewer deals to make the same amount of money
5. Safer, easier, faster to turn
While many perceive buying and selling higher end homes as being more difficult quite the opposite is often true.
The process is exactly same, the homes are often in much better areas and in much better condition, and the players can be far easier to deal with. Retail buyers in this arena normally have better things to do than nitpick or nickel and dime investors. Often they may be more open to handling their own renovations and gut remodels too, meaning a broader resale market and the potential for higher profit margins.
For those moving up from extremely low end housing some of the quirks that may crop up include:
• Adapting to different design appetites
• Dealing with arrogant real estate agents
• Building new contacts and referral partners
• Tweaking marketing and marketing channels to reach and appeal to the right prospects
To win look at the end game first; get out and network, pre-sell the deal first and use Best Transactional Funding for short term cash to flip more deals.
As competition in the U.S. residential housing market has increased many investors have picked up shop to head off to hard hit foreclosure areas with more inventory like Miami, Detroit, Atlanta and Chicago.
This wholesaling strategy is working out well for many, but others are considering the pros of simply stepping up to flip higher end homes. While attractive, some find this a daunting prospect which they perceive as bringing additional challenges, especially when dealing with luxury home buyers and sellers.
So what are the real benefits of wholesaling luxury houses and what differences really exist that can bring new quirks to the game?
5 Benefits of Wholesaling Luxury Homes:
1. Finding a less competitive niche without looking out of the area
2. Far higher net profits for the same amount of work
3. Prestige
4. Need to do fewer deals to make the same amount of money
5. Safer, easier, faster to turn
While many perceive buying and selling higher end homes as being more difficult quite the opposite is often true.
The process is exactly same, the homes are often in much better areas and in much better condition, and the players can be far easier to deal with. Retail buyers in this arena normally have better things to do than nitpick or nickel and dime investors. Often they may be more open to handling their own renovations and gut remodels too, meaning a broader resale market and the potential for higher profit margins.
For those moving up from extremely low end housing some of the quirks that may crop up include:
• Adapting to different design appetites
• Dealing with arrogant real estate agents
• Building new contacts and referral partners
• Tweaking marketing and marketing channels to reach and appeal to the right prospects
To win look at the end game first; get out and network, pre-sell the deal first and use Best Transactional Funding for short term cash to flip more deals.
