Paying all cash or obtaining traditional mortgages may be becoming even tougher for real estate investors. Especially for home flippers and property wholesalers. So, what is the best way to fund your deals now?

The Traditional Mortgage Market

The mainstream mortgage market has never really fully recovered from 2008. In fact, lenders have only become tougher recently.

One of the most significant red flags recently has been Better mortgage which just laid off over 900 employees, citing issues with the mortgage market.

While non-bank lenders have grown to account for over half of mortgages again, the new breed of so called private money and hard money lenders in the market today still typically have tougher underwriting criteria than traditional banks prior to 2008.

If they incur more losses they will only toughen up further.

This makes traditional mortgage financing inefficient and a source of frustration for investors. Especially, flippers and wholesalers.

Interest rates are also only expected to go up from here.

More Scrutiny Of Cash Real Estate Purchases

This December the Treasury Department announced that it is working on even more regulation to track and dig into cash real estate purchases.

This comes after the government began tracking payments as small as $600 under the stimulus plan of early 2021 according to Airbnb. As well as the new spending bill which gives the IRS an additional $80B budget for enforcement.

Until now additional scrutiny was only focused on cash property purchases of $300k and up in a select number of metro areas. This could now apply nationwide across all price levels.

Even those doing nothing wrong just may not want to be at the top of task for and IRS lists for investigation. Creating more motivation to find other ways to fund real estate deals.

Transactional Funding

Transactional funding is still available and continues to emerge as the best way for funding wholesale deals.

It comes without all of the hassles and hoops of traditional mortgages. No credit score, appraisal, income and asset requirements. Plus, it offers 100% financing, including closing costs. All with the ability to fund deals in just a few days.

This also dramatically boosts ROI, and the scale at which real estate investors can operate.

How will you fund your deals this year?

 

How can property wholesalers beat all of the deafening marketing noise out there today in order to close on more acquisitions and flips?

The amount of advertising noise out there is at epic proportions today. It’s coming from constantly blaring screens, in vehicles, on signs, and is being beamed into our palms and on our wrists. Soon smart glasses will pop up ads literally right in front of our eyeballs so we can’t ignore them. That can make it tougher and tougher (and more expensive) to stand out, get noticed and compete. Even if you repeat everything you did last year, your results may be way down due to the rise in noise. So, whether you are a real estate education guru or brand new investor focusing on wholesaling, how do you break through it?

Make it Personal

The tendency today is for marketers to just blast, blast, blast messages out. There is far less focus on handling the incoming. Too many drop the ball on replying and following up with leads in those most valuable first five minutes. It’s not just hot leads either, but the growing amount of interactions that are happening online. Maybe you can’t compete on content and volume on social, but you can do better at really engaging and strengthening personal ties. If you tried to compliment someone or speak to them in the street and they ignored you, would you buy from them? How would you relay your feelings about them to others? Yet, real estate investors and brands frequently fail to respond to likes and comments on Facebook, Instagram and other social platforms. It’s no different. Spend less time firing at them, and more time in real conversations.

Make it Real

So much is happening virtually online. Yet, that is only making real life engagement, relationships and activities scarcer. Stand out by getting together in person and building real connections whenever possible.

Make the Most Noise

If the above doesn’t appeal to you, then at least make the most noise. It may be easier and more affordable than you think. At least if you use the data available and target well. You can achieve great market saturation with a dense and targeted multimedia approach. You can hit them with mail, email, Facebook ads, signs, and be there every time they search the internet.

Make the Most of Your Marketing Team

Many businesses are still struggling to get a handle on the new remote working environment. You can now affordably recruit the top talent in the world and get just what you need from them on an on-demand basis. Yet, so many are still trying to micromanage their operations. That’s like signing Lebron James and then keeping him on the bench. Or insisting he shoot your way if he is ever on the court, even if you’ve never made a half court shot or dunked. Sounds crazy, but that’s what the bulk of brands are doing. They don’t know what they don’t know about the game. They don’t have the level of expertise in the details that their players do. Yet, they wonder why they aren’t scoring more. Find great talent and get out of their way fast so they can clock up the wins for you. You don’t need to dictate how they throw, as long as the data is going up on the scoreboard.

 

What are the most common mistakes real estate investors make when hiring and working with outsourced staff and freelancers? How can investors and real estate businesses recruit and wield these assets more profitably?

Outsourcing has become the way to run a business and hire today. It is very hard to remain competitive when maintaining an in-house staff today. However, this type of hiring and labor management is still new to many real estate CEOs and investors. How effective and profitable these freelancers prove to be in your organization depend a lot on how they are hired and allowed to work.

Watch out for these five common blunders and how to ace them instead…

Being too Vague or Detailed in Job Postings

Want to hire the best freelancers for your real estate business? Be wary of being too vague or too detailed upfront. Put yourself in the shoes and mind of a top freelancer. Experts are going to be looking for roles they have experience in. There’s a big difference between an SEO ‘expert’ and an online marketing professional with real estate SEO experience. If they don’t know this is a real estate gig, they are probably just going to pass or reject the offer. On the other end of the scale, the best are fielding multiple job offers and are browsing hundreds of job postings each day. They simply don’t have the time to read a book about the job description or jump through a lot of hoops. Make it easy for the best to apply. Then be very clear about the deliverables and role once you narrow down your short list of your top potential hires.

Not Prioritizing Value

When you are out there evaluating house deals price is really irrelevant, right? This is especially true for flippers and property wholesalers using transactional funding. How much the property costs doesn’t matter. As long as the value and profit is there. The process is the same, but if you can make $200k flipping a million dollar house, without using your own money to fund the deal, that’s better than doing the same amount of work to flip a $50k house and netting $10k, right?

So, when shopping freelancers, look for the value. For example; if one charges $80 an hour, but can deliver the same results in one hour that a $20 an hour freelancer take 6 hours to do, the one with the higher rate is actually cheaper and more profitable.

Failing to Fully Utilize Freelancer Assets

Freelance team members are assets. Yet, they are often sorely under-utilized. You don’t want to throw too much work on a team member that is outside their area of expertise. Even if they are good it can be counterproductive. Yet, make sure you are using each one you have to their maximum value. If they have more experience in one area than you do, listen and test their ideas. Then get out of your own way and let them do their best possible work.

Not Sharing Goals, Values and Milestone Objectives

It’s impossible for your team members of any type to help you reach your goals and to appropriately represent your brand and company values unless they know what they are. They are not mind readers. Make sure you share these critical factors and keep them visible.

Being Slow to Pay

Most freelancers work on a very short income and cash flow cycle. That is usually days or a week, versus how some real estate businesses try to stretch out invoices with other vendors for 30 or 90 days. They typically have a dozen plus clients at a time, and are naturally going to do their best and prioritize work for those they know are going to pay, and pay on time. Plus, it gets very expensive for them to chase down invoices. If you want fast, top notch work, be their best client.

 

What separates the most successful property wholesalers from the rest?

Aside from looking credible, offering truly good deals, and ensuring smart financing is lined up, there is one factor that really determines success in real estate. It applies to wholesalers, Realtors, property managers, and other investors too.

It’s follow up.

It doesn’t matter how great the deals you find are, how awesome your website is, or how much money you start with. If you aren’t excelling at the follow up, you are throwing it all away.

As a wholesaler you end buyers are serious buyers. They respond to ads looking to make something happen fast. They literally have access to millions of properties in inventory out there. Yours may be good deals, but you can bet there are others too. Whether they buy from you or not, and keep coming back, or send you referrals, and how much money you make, and how fast, all depends on the follow up.

If you aren’t going to be available, follow up, and follow through, then save your advertising dollars for something else. Fortunately, the failure of your peers to follow up well, also creates a huge opportunity to do more deals, and gain market share.

It all starts with awesome follow up at the first enquiry. It’s not expensive to have a virtual assistant or call center to take your live lead calls and get them in the pipeline. Or at least have a good funnel that captures phone numbers and email addresses the moment a lead comes through. Have someone available to immediately respond. Or set up autoresponder texts, emails, and return calls. Every second that goes by sees the odds of closing that deal go down. Every second you haven’t answered means they are looking at competing properties and can be forming relationships with your competitors.

A lot of the time leads won’t close on the very first call or email. What’s your system for closing them after that? Don’t just wait for someone else to beat you to the punch, follow up, and close the sale. Send follow up emails, be proactive about calling or texting, or messaging on social media. Have a system for this. Follow up in 24 hours, in 48 hours, a week, and so on.

Then ensure you have a meaningful follow up system for regularly connecting. You want to keep your clients, build the relationship, and nurture those that didn’t close into real customers. This can be done by phone, SMS, physical mail and thank you gifts, in person meetups and more. Don’t spam or over-sell or you’ll get doomed to the junk pile. Do make a system and automate it, while providing meaningful value at each connection.

How’s your follow up?

Peak real estate season is coming up fast. How can investors do more wholesale deals in the months ahead?

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

Build Your Buyers List

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

Market To Sellers Early & Often

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

Make The Move Easier & More Attractive

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

 

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

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.

Need some cool Valentine’s Day gift ideas for a property wholesaler in your life?

Check out the new list for 2017…

Thank You Cards

If you are in real estate the chances are that you have a few wholesalers which play a role in your business. They rarely get the appreciation they deserve. Whether you are an agent helping them move inventory, a rehabber buying it, or a partner or family member, a thoughtful thank you card can be really appreciated.

Leads

There is nothing that real estate wholesalers love and need more than leads. It probably won’t cost you a dime either. Yet, can be hugely valuable for the recipient. Know anyone looking to buy or sell property, or have seen some vacant homes around the neighborhood which could use a new buyer? Get the info and pass it on.

Drones

Drones are still in. They’ll help your wholesaler create the best photography and marketing presentations so they can flip houses faster.

A Stylist

Real estate wholesalers are typically not famous for their fashion. Yet, branding is becoming more and more important. Take them on a shopping spree, or get them a stylist from a boutique firm like Ensemble who can help them create the perfect wardrobe.

Education

You can never learn too much. There is always something more to learn and master in real estate. Help your wholesalers with the gift of new learning courses or tickets to an industry event.

Vacations

Valentine’s is the ideal time for romantic getaways. Send your favorite wholesaler off on a trip so that they can recharge and come back on top of their game. Mexico, Florida, and the Dominican Republic are all top choices this season.

Funding

You just can’t have access to too much cash in this business. Turn your wholesaler on to new sources of funding for their deals. It could be connecting them with a private lender, giving them some capital to invest for you, or introducing them to transactional lenders.

 

Authored by BestTransactionFunding.com - the BEST source of transactional funding for real estate wholesalers. Log on and get your free Proof of Funds Letter from us today!

Where are the end home buyers for your real estate deals now?

For several reasons we could see a new surge in home buying over the months ahead. So how will you take advantage of the potential for more business and smash through your 2017 goals fast?

More Home Buying Activity Ahead?

Between a new bullish outlook on real estate following the U.S. presidential election, anticipation of higher interest rates, looming tax deadlines, and a generation of ex-homeowners now seeing their credit bounce back after the 2008 crisis, there could be more retail home buyers, investors, and funds looking for properties over the next few months.

You’ve probably already set bigger and better income and transaction goals for the new year. With the best transaction funding investors can really do an unlimited amount of deals. The key is having the end buyers lined up to flip them to. So where do you find the buyers now?

China

Despite what Trump has said, we know he has worked heavily with Chinese investors before. New data shows China continues to grow its investment in the US by billions of dollars. With ongoing questions over the future of Asian real estate, and a brighter outlook for America, don’t be surprised if Chinese buyers and investors continue to be one of the most impactful factors in the market in 2017. A smart way to get ahead of the competition here could be utilizing Google ads to reach buyers abroad.

Crowdfunding Portals

Crowdfunding has been swelling in popularity. It may not be as easy to raise money on these portals for the masses, as hoped. However, those that have been successful continue to have a lot of capital to deploy. Look for these buying sources and get right to the money without worrying about launching your own crowdfunding campaigns. They need the inventory. If you can provide it you might have a match.

Note Buyers

There is still a significant amount of distressed property and paper out there. However, those numbers are likely to keep shrinking. Some note investors may need to begin augmenting their deal flow and incomes by investing directly in bricks and mortar. Many already have the capital to make acquisitions.

Lead Lists

Acquire new targeted lead lists of qualified buyers. Data vendors may have lists of those who recently applied for mortgage loans, data by credit score, and more detailed information on investment appetite and strategy. Use them to send emails, direct mail, or call.

Realtors

Don’t dismiss real estate agents. They cultivate big buyer lists and would love to serve them up fresh deals. Just price in whatever commission rates you negotiate and create more win-win scenarios.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and 100% financing for property wholesalers in the United States.

The outcome of the 2016 US presidential election looks set to spur a new boom for real estate wholesalers.

No matter who you voted for the election results, and Donald Trump win is expected to create a flurry of real estate investment activity. Property wholesalers who move fast stand to benefit big from this action. Especially those who know how to market themselves well.

Many Clinton supporters swore they would leave the US if Trump won. If they stay true to their word many could be packing up to head to Canada, the Caribbean, and Mexico. That is likely to mean a sizable number of property owners at all levels of the spectrum looking to shed their real estate fast. Who better to help than wholesalers?

Trump believers are no doubt ecstatic. There is no question that many specifically voted Trump for the perceived benefits to their real estate investments, taxes, and healthcare costs. For them it is time to get busier than ever putting their capital into the US property market and expanding with new acquisitions. Wholesalers and agents should be seizing on this opportunity to serve the surge in demand, especially with the additional inventory which may be coming online. As of the end of trading November 9^th, the NASDAQ, DOW, S&P 500, and gold prices were all up. Don’t be surprised if some asking and bidding prices go the same direction by the end of the year as well.

The real icing on the cake could be a reversal of recent international investment trends. The National Association of Realtors had reported foreign investment in real estate falling by over $1B in 2016. With the uncertainty over, and a president known for being big on real estate in the White House we could see some of those investors coming back, and with more capital to buy income properties.

Whatever the other fallout from the election results may be, let’s just hope for non-violence. React with your investment portfolio and strategy as you see fit. Take advantage of what we do have. And let’s try to get along, whether delighted or depressed by the results.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding for real estate wholesalers in the US. Get your Proof of Funds letter today and start doing those deals!

The more property wholesalers help their end buyers be successful, the more they will be successful themselves.

Wholesalers who are serious about succeeding will proactively look for ways to help their end buyer customers. The more profitable and efficient they are, the more homes you can sell them, the more loyalty and trust you will build, and the more you’ll enjoy what you do.

So how do you help your rehabbers and landlords who are buying your properties?

Pile on the Referrals

As a true wholesaler you may not be interested in retail buyers, or getting involved in renting or rehabbing at all. Yet, chances are you’ll run into plenty of these leads every week. Pass them forward.

This can include renters, Realtors, contractors, retail home buyers, and buy and hold investors looking for rentals, as well as lenders offering long term financing and rehab cash.

Provide Better Intel, Earlier

What slows most rehabbers down the most? Evaluating properties and getting the work complete. So give them a better head start. When you can get them access to the property in advance. When you can’t provide more detailed information, repair estimates, repair needs, etc. If you let them know what deals you may have coming up, even before you are ready to close on the B to C transaction they can be sure to have their financing and crews lined up too.

Share Marketing Tips

What is the biggest sticking point for more end buyers? It’s getting that property resold or rented so they can bring cash in and buy more inventory from you. Help them with that. It is only to your benefit. According to RealtyTrac flip times are at a new record high of over 6 months! That’s crazy. Start a real estate blog and share marketing tips to help them move their deals faster. Share tips you find via social media and email too. They’ll appreciate it, and you might generate more end buyer leads in the process.

Be Consistent

Stay consistent with your inventory conveyor belt, the quality and accuracy of your deals, the match for your end buyers, and the frequency. If they can rely on you to have the good deals when they want them then they will keep coming back.

 

Authored by BestTransactionFunding.com - the leading source of transactional funding for real estate wholesalers in the US. 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!

What can real estate wholesalers learn from the hotel business?

Not many property wholesalers focus on flipping commercial real estate. Even fewer flip hotels. But no matter what type of real estate you are wholesaling, there are valuable takeaways that can be implemented to protect, improve, and boost your business. So what are they?

It’s About Expectations, Not Price

A recent study of hotels ratings and social media conversations about various hotel brands revealed that many of the more prestigious and higher end brands actually had the worst feedback. The conclusion was that this is because those paying more, expect more. Those expecting very little were more likely to be wowed by the property and experience. So how can you over deliver a little more?

Continued Bad Service Simply Won’t Fly

Real estate professionals can often find themselves falling into the same trap as old school banks, and the “he who has the gold, makes the rules” mindset. May be you do have great deals, and the inventory others want, but sooner or later consumers won’t put up with it. For example; it doesn’t matter how cheap hotel rooms are on Hotwire if travelers consistently have a bad experience. If they are travelling for a month, and a mistake is made in booking and their money is taken, but no room is provided, or on arrival the hotel says that they booked a single smoking room, when they are actually traveling with 5 kids, opinions go down south fast. Soon it becomes safer and more profitable for that customer to go pay more upfront in order to get more of what they want. If you don’t want to lose business to the MLS, Realtors, or other property wholesalers, don’t let service slip.

You Never Reach a Point When You Can Afford to Neglect Service

The above often happens when things are going well. But they won’t keep going well if bad customer service becomes a habit. One blunder that is made right is one thing. Three or five of the same mistakes, and little effort to repair the relationship is a new (low) standard. It doesn’t how big you are. In fact; the bigger you are often just means you have further to fall, you’ll fall harder, and there will be more people eagerly looking to give you a shove, and to step into your place. Most of us know Expedia and Hotwire, but does anyone remember Travelocity? Travelocity is actually still in business, but few remember the sight. What about the hundreds of wholesale mortgage lenders and even banks that folded and were bought out on the cheap in the last decade? Most of those that are left were basically taken over by the government. Do you really believe the government and tax payers will step in to bailout your wholesaling business?

Online Reviews Are Everything Today

There is so much distrust between consumers and businesses today. And a lot of it is sadly warranted. Today most consumers will check out reviews before doing business with anyone. They won’t settle for the testimonials and reviews you serve up on your website. They know that the feedback can be substantially different on other platforms. And it is so easy to do from a smartphone that consumers can check you out within seconds of meeting you. Are you going to do business with someone that has bad reviews? So find ways to propel and solicit authentic, positive reviews.

Positioning is Every Thing

Going back to expectations – the positioning you and your wholesale real estate deals hold make all the difference in how much volume you earn, and how much profit you can make. You are in control of the value that is put on your opportunities. Done right your positioning can attract more cash rich investors, high volume investors, and can generate more profit per deal.

Every Business Needs a Make Over Now and Again

Have you ever visited what you expected to be a reputable hotel chain only to find the rooms horrible outdated, and the amenities far from keeping up with the competition? How did that feel? How do you feel about that hotel brand now? The same goes for any type of brand. So is it time you gave your wholesaling website, presentation materials, and real estate marketing a makeover?

 

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.

As the US real estate market continues to heat up property wholesalers are becoming more in demand. So how can real estate wholesalers connect with more end buyers? And close more deals?

As more individuals see the need to invest in real estate the hunt for deals is heating up too. Many investors that have gotten into the market since 2008 are having a tough time after being spoiled for easy deals for years. Some just don’t know how to farm them. Then there is a new wave of investors coming in that are working up to 12 hours a day at their regular jobs and just don’t have the time to go out and source deals direct, or dive deep into good marketing. They are crying out to connect with real estate wholesalers in online forums. In fact; Google Trends reports that the term “real estate wholesalers” has reached its highest ever online search volume as of May 2015.

So how can professional property wholesalers connect with more of these hungry buyers and get deals closed?

The web is an obvious one. Make sure your site has been mobile optimized to rank well in Google searches and work on blogging with relevant keywords on a daily basis. While you are ramping up your real estate wholesale blog Google Adwords can always be used to supplement traffic with PPC advertising.

Of course real estate buyer leads aren’t always the same thing as deals. This is where many are struggling. More than ever today wholesalers need to recognize the need for developing a product that is easily bought and sold. Mortgage note fund manager Fuquan Bilal in New Jersey suggests the key to successful presenting to investors is keeping it simple. Do be prepared with answers and collateral that will help overcome objections with ease. But don’t sabotage your own sales by being over technical and complex. In fact, done well, real estate sales should already be 90% won before a live conversation even starts. This means branding and a good online reputation.

How will you win more of this real estate business?

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.

Maximizing potential for real estate wholesalers is all about the buyers list. So how can today’s property wholesalers build their lists bigger and faster?

With endless amounts of distressed inventory out there, unlimited capital from Best Transaction Funding, and retail property prices moving up fast, there is no reason wholesalers shouldn’t be blazing through their goals. Still, a lot depends on having a great buyers list. Your buyers list helps you to act with confidence knowing you’ve got deals sold, even before you ink contracts or make an offer.

The Trouble with Birddogs

Real estate investors have been told they should be using ‘birddogs’ to roundup deals for decades. But the lack of a system, and fragmented and half-hearted way it is normally approached has often yielded little results. Many investors have randomly offered others some type of reward for bringing them deals. Few have probably seen much action from this. But that doesn’t mean it can’t work if done better.

In order to work wholesalers need motivated referral agents or buyer recruiters that are actually equipped to bring them in deals and prospects. The need to offer some form of system and support, and really motivate these individuals to make this a priority.

Birddogs 2.0

Wholesalers do need to watch out for the legalities of their setup. They might want to have their attorneys prepare some form of contract, or in some cases hire new social birddogs as independent contractors. They also need to be sure they don’t cross licensing laws. However, there are several ways to overcome the challenges of yesterday’s birddogging tactics…

1. Get people integrating this with what they are most passionate about
2. Give them a better name and title than ‘birddogs’
3. Create a system and support mechanism

What Should They Do?

The problem with selling has always been, well…selling. Referrals are always better than direct sales pitches. So what wholesalers need is a small army of assistants who are passively referring people to their buyers list. In a comfortable way.

Some ways to do this can be via personal Facebook pages, bloggers, casual networking, and dinners or other fun events. You’ve got lots of people out there with big networks that trust them. When they make referrals in a passive way it can carry a lot of weight. And all they have to do is to start talking about real estate, mention this person they know that is constantly serving up awesome deals on houses, and point them to their landing page to punch in their email to get alerted to new deals. They get to do what they are passionate about, and can get paid while having fun.

Your new agents can be made up of friends and family, local experts or notable social butterflies you reach out to, or hires you make via online platforms.

Try it out…

 

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.

Are you taking too long to flip properties?

How long should it take to flip houses? And what are the costly perils of taking too long to turn real estate deals around?

BloombergBusiness recently announced that it’s only taking a few years to flip NYC condos for big profits. Most wouldn’t consider that ‘flipping’. That’s more like buy and hold. In fact; you could probably build a few grand spec homes from scratch with that type of timeline.

In the past RealtyTrac has said the average turn time for flipping houses was 106 days. Redfin says that new home listings shot up 12% in February 2015. However, it also describes buyers “coming in like a lion.” A 44% year over year surge in home showings and a 36% year over year increase in signed offers suggests a looming inventory shortage. And the National Association of Realtors says the average Days on Market (DOM) fell to 89 days in March. That’s ahead of peak spring and summer buying season. So this number should fall even further.

Traditional real estate rehabbing is valuable and needed. And it can still be profitable in certain scenarios. But it may not be the fastest way to turn around deals. And clearly once a rehab is done there is no reason it should be taking real estate investors more than 90 days to flip these houses.

Check out these new hard money loans for fixing and flipping real estate

Meanwhile property wholesalers using Best Transaction Funding are flipping properties in just 1-3 days. They are able to do this because of the capital they are able to leverage, their strategy, and perhaps most of all because they focus on building buyer lists and pre-selling their deals. Let’s be honest; every day holding a property, and every contract signed brings some form of risk. If you don’t already have a concrete exit before going in, you are just speculating, versus investing.

With wholesaling you are almost out before you are in. That presents the lowest possible level of risk. Fixing and flipping is still great, but the more flips you do per year the higher your overall profits are. Do you want to flip your money 12 times a year, or less than once? There should be no reason to be flipping the same money less than four times a year.

 

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.

Real estate wholesalers have become essential to creating more sustainable housing in America. So how have property wholesalers become the key to solving US housing crises. And how can they help make more of a difference?

The Real Definition of Sustainable Housing

In his new book R.J. Martin of Green Homes Hawaii argues that ‘Sustainable’ housing is about more than just LEED certifications. In order to be truly sustainable housing not only needs to be eco-friendly but affordable too.

America is facing a growing affordable housing crisis. The McKinsey Global Institute says that the world is on its way to over 1,600,000,000 individuals that can barely afford housing, or have to live in unsafe housing. That’s on top of all of those already forced out of housing. Affordability is about more than low rents or mortgage payments. Utilities are a big part of overall housing costs too. The new mandatory water restrictions in California show that recent building methods haven’t just been costly, but can no longer be sustained.

Building Better Solutions

Fast Company, 100% Sustainable Home Builder Mesocore, and The McKinsey Institute believe America’s affordable housing crisis can be solved via…

Unlocking property to be redeveloped

Finding more affordable ways to create housing

Improving energy efficiency

Better financing

It is also undeniable that one of the most important components of fixing the current landscape is to recycle the billions of dollars in distressed properties and REOs out there right now. Millions more homes remain vacant than there are homeless people in America. In Charlotte 1 in 4 foreclosures in the first quarter of 2015 were classified as abandoned ‘Zombie Foreclosures’. Wholesalers are key to recycling these homes and putting them to good use. There is a massive amount of this housing stock, and it is more sustainable to use this than develop raw land (in most cases).

DistressedPro just released a new Definitive Guide to Bank Owned Property that breaks down how to find, negotiate, and buy REOs, and reveals the top 10 US banks with REOs right now.

How Important Real Estate Wholesalers Are

Wholesalers are vital to taking this housing and getting it into the hands of homeowners and renters. Most importantly; wholesalers control the flow of this housing.

Wholesalers choose who gets the inventory.

You get to choose who gets to buy it. And in turn what happens to it. Will you just cash out to the first bidder? Or will you build a list of ethical buyers? Buyers that will make green and sustainable improvements and renovations. And if they’ll be tearing down to rebuild; buyers that will build affordable green homes.

Some real estate investors are simply in to make big money. You can make big money, and make a big difference. When you look back on your life’s work wouldn’t it be great to have had a part in helping families, ensuring safe housing for kids, and creating healthy housing? You’ll be responsible for one or the other. You choose. Though handing our children millions of dollars in inheritances may be of little use if the environment is a wreck and housing hasn’t been fixed.

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.

The real estate landscape is changing fast. Beyond the mechanics of wholesaling houses for high profits investors need to know how emerging trends and some of the finer quirks of the industry can impact profitability.

Throwing out offers in mass with confidence is relatively easy for property wholesalers with the best transactional funding lined up to fund all of their deals. On the flip side, while there are still some properties rotting on the market, many areas are seeing homes being snapped up in minutes, often before they can even be put online. However, there are some emerging quirks of the market which it is wise for serious wholesalers to be tuned into.

Some of these have the potential to stick wholesalers with properties they can’t turn over as quickly as they thought. Others can help investors stay away from snags and take the lead in the boom ahead…

New Construction Isn’t Perfect

As some find publicly marketed inventory tightening or more competitive, more investors are considering the lure of new construction properties. As Delaware custom home builder Turnstone Builders recently blew wide open in an ultra-transparent blog post – new construction can be far from perfect. It can be riddled with contaminated land, faulty structures, and more. Don’t fall for looks or the promise of new always being better without a warranty and some due diligence.

It’s Cheap for a Reason

The incredibly low prices real estate has traded for since the crisis has helped thousands of new investors get into the market. With properties going for under $10k a pop, they became accessible for everyone, while those with good credit can put houses on their cards as easy as buying lunch. However, as with most things in life; cheaper isn’t always better. There’s a reason properties have sold for $100, $5,000, and $10,000 in areas like Detroit. Some also might question the math of purchasing properties and then putting double the purchase price into them in rehab money. Deals mean undervalued properties, or at least fair priced homes that may be worth more to others; it has nothing to do with the dollar price tag.

Responsible Products

Unfortunately the real estate industry seems to foster the temptation to throw ethics to the wind in exchange for more deal flow and more cash. It often starts slow, with one toe into the grey area, and then bam! In the real estate industry this has often turned into rationalizing selling bad product. This might be poisoned land, homes with mold, old meth labs, or even homes with Chinese drywall. You wouldn’t appreciate someone selling you a dangerous car that you plan to drive your kids around in, or faulty toys that can be lethal. So why sell on homes that can be even more dangerous? If in doubt throw the file out. If you don’t, at least know that investors and home buyers are better educated than ever, and sooner or later it will comeback, even if you resell these homes.

Property Rights Wars

Property rights is the new frontier of real estate. The highest paid lawyers in the country are moving into this niche to help affluent property owners and the public preserve views and space. Eminent domain activity is also heating up. This is perhaps most noticeable in South Florida, along the planned route for the Keystone XL pipeline, and California’s new rail line. For some investors property in the path of eminent domain can turn out to be incredibly profitable. In other cases it can mean big losses. It all depends when you buy it, and for how much.

Forward Thinking Buyers

Home buyers, including end investors are thinking further forward than they used too. They may not verbalize these considerations, but there are factors they are looking at, and which unless addressed could become barriers to resale. On the other hand those wholesalers than pay attention and get ahead of the objections could find a new sweet spot. The most intelligent and serious buyers today are taking into consideration factors like rising sea levels, length of functional use, and long term performance. If your end buyers are long term hold income property investors or high net worth home buyers you might want to keep this in mind when searching out new areas and making offers.

Privacy

Mark Zuckerberg’s real estate woes in California have highlighted the desire for privacy many luxury buyers are seeking today. They don’t just want large lots and homes, they want a nice cushion to keep the paparazzi away too. How can you help serve up more of what they want than the competition can?

Sustainability

Although industry organizations like the CCIM Institute have proclaimed that green building has now become mainstream, and buyers want it, the online real estate landscape still appears to be very thin when it comes to searching for and finding green homes and lodging. How can you incorporate this into your strategy?

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.

In spite of the value they bring real estate wholesalers are often among the most hated players in the business. So what can you do not to be one of those wholesalers?

Property wholesalers might sometimes rival attorneys and Realtors for being the most disliked and shunned members of the real estate community. Yes, it’s ironic. Few hate on Wal-Mart, Costco, or Amazon in the same way. Few others in the industry offer as necessary or as valuable a service. Yet, whether it is because they make money too easily, or too many amateur wholesalers have thrown one too many bad ‘deals’ around, good wholesalers have their work cut out for them.

So how can those serious about wholesaling houses stand out as real professionals and do more deals?

Offer Great Deals

If you offer great deals, they will sell fast, and you’ll have plenty of repeat business and referrals. Each individual might have their own opinion of what a good deal is, but if you know your buyers, you know what they find attractive or not.

Know Your Stuff

Nothings irks qualified and serious end buyers more than being swamped by amateur wholesalers that haven’t bothered to invest in building their knowledge. So invest in your education and training, and learn the business enough to be able to fake it until you make it.

Provide Reliable Deal Details

If real estate wholesalers concentrate on providing accurate information they’ll quickly win credibility. Those that keep dropping the ball or are seen as trying to be slick won’t be given many second chances. One of the best marketing moves you might make is to actually over-estimate repair costs and under estimate ARV. Then buyers will buy from you again and again, and they’ll trust you enough to do it quickly.

Inbound vs. Outbound Marketing

Unfortunately there is so little trust out there due to bad marketers and desperate wholesaling newbies that even if you’ve got a great deal you can waste a lot of time, energy, and trust by spamming. By all means build highly targeted lists and channels for updating qualified buyers on your deals, but before that let them find you. If you’ve got great deals, and a good handle on SEO, and can do a little networking you should be fine.

Be Different

Despite how much people love to bash them, real estate investing coaches often do a great job at turning new people onto wholesaling houses. We can bicker about their seminar fees and depth of content, but if they weren’t out there teaching there would be fewer millionaires, more struggling homeowners, and fewer deals being fed to those that need them. However, if there is a bone to pick with some of these programs that churn out novice wholesalers (and we all have to start somewhere), it is giving them all the same cookie cutter website, content, and templates. It’s no wonder real end buyers can’t tell the difference. So consider the value of looking and sounding different to the rest. If there is one thing worth disrupting in real estate wholesaling it is presentation and branding.

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.

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.

What does an effective email auto-responder series look like for real estate wholesalers?

Having a real estate wholesaling website and strong opt-in magnet is great. However, all savvy marketers know that it can take several touches to convert new prospects, and especially in the world of flipping houses it can take recurring outreach to connect the right deals with your buyers list. So what do successful email campaigns and auto-responders look like for property wholesalers?

Right Expectations

Success in email auto-responders, and avoiding complaints and wasted time requires building a list with synergy, and setting the right expectations. Your opt-in needs to be relevant to what you’ll be emailing them about on a regular basis. Be transparent. Let them know if they should expect instant updates when you post a new real estate blog, weekly updates on new wholesale property deals, or something else.

Style and Design

There is no single right answer about what your emails should look like. The best look is really about who your list is made up of, and your branding. If you are simply messaging personal contacts and have a basic real estate website then a personal looking, plain text email message can be the perfect fit. In contrast; if you have a high profile luxury brand, in a high end market with a very design conscious database it may be wise to include visuals. New templates from AWeber and other email services can help wholesalers craft emails which mimic their website pages for a seamless user experience.

Content (What to Email)

What should you be emailing to your list? What you promised. It can be quarterly newsletters, daily real estate wholesaling blog posts, an email training series, or notifications whenever new wholesale deals come on board. There can be occasions to deviate such as holiday wishes and notable product or service changes, but don’t stray too far from what they are anticipating, or they’ll turn off, doom you to the spam folder, and cause issues with your email provider, regardless of how much value you think you are adding.

Length

Email auto-responders should never really end. Messaging should be ongoing once a name is added to the list. To get started new real estate wholesalers may want to launch with a set of 4 to 7 emails and then invest in more as their list takes off.

Length of individual emails can vary. Some of the most effective are just a line or two. At the same time, some very successful bloggers and email marketing experts claim that extremely long emails (running into multiple pages) have performed the best. Think about who is receiving them, why they want them, and what action you want. If it is clicks to site then make that as easy as possible.

Calls to Action

Don’t forget your calls to action. Use multiple links, social icons and URLs and your phone number if you want to generate live calls.

Want More?

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