While other mortgage lenders are hiking their rates like crazy, Best Transaction Funding are slashing their interest rate deals.

Our MEGA fall sale offers just 1% on loan amounts from $600k to $1M*.

Simply enter Coupon Code "1%MEGABLAST" with your funding request.

Applies to all loans closing before the end of the year.

This Is The Time To Buy

This is a fantastic time for real estate wholesalers to be buying and lining up deals.

Fall is the best season for writing offers on property. There may still be the tail end of the back to school season to capitalize on. After which sellers panic during the following seasonal lull in competition.

Other recent trends in mortgage rates, and home loan defaults are compounding this, so that real estate investors can take advantage of more negotiability, and even better discounts on new properties.

Line Up Those Windfall Profits

Some housing markets are still experiencing up to 40% year over year appreciation. Both hyper affordable markets where people are moving to, as well as wealthy enclaves used for asset protection.

Others will see their uptick closer to the end of the year. Annual bonuses, a surge in economic and real estate activity from Black Friday through New Years Eve all help to make this one of the great time to sell.

We’re Here To Help

Other real estate lenders are just hiking interest rates like crazy, because they think they can.

We truly want to see you succeed and grow your business.

So, while unconventional, we’re slashing our rates to put our money where our mouth is. Plus, enjoy our same great human service for getting those deals that make sense done.

Request your POF or apply for your loan with us and lock in this deal today!

*NOTE: This 1% sale is not to be combined with any other special offers and referral fees do not apply.

 

Watch out for these four real estate and mortgage trends that are evolving now…

The US real estate and mortgage market is changing fast. Many diverse trends and conflicting headlines are showing up. Some of these are local market differences. Like new foreclosure spikes by double digits and declining property prices and rents. Others may have more macro impacts, with bigger opportunities and consequences. If you are out there wholesaling houses now, make sure you know what’s going on.

Mortgage Interest Rates

Bank Rate reports that mortgage interest rates have come down in August 2018. Average 30 year fixed mortgages are only 4.37% and 15 year fixed loan rates are averaging 3.78%. That’s great news no matter what you are financing or refinancing.

Housing Beginning to Drag Down the Economy

Market Watch reports that housing is now finally beginning to pull down the national economy. The chief economist for Fannie Mae says that lackluster building activity, slow sales activity and and brokers commissions are all beginning to become a lag on the whole economy. Other analysts report that only around half the number of people are moving for jobs in 2018, and many home buyers have simply given up. Less building, fewer listings sold, and lower Realtor earnings can all start showing up in unemployment figures, GDP reports, and the balance sheets of local businesses.

While we never want to see other suffers, the sooner agents and sellers who have been overpricing listings catch onto this, the sooner wholesalers should be able to scoop more deals at better prices. If you’ve been longing for the glory days of 2008 and cheaper houses to come around, we could see more distressed sales and motivated sellers ready to take action soon. Providing you are wholesaling and are negotiating at good prices, this is all good news.

Alternative Lending

Investment capital is still plentiful for now. This is the time to use it. Non bank lenders have seen their market share rise over the past 4 years, and made over $60B in loans last year. In addition to transactional funding there are credit unions, crowdfunding portals, conduits, home equity loan lenders and private lenders will to provide capital. Real estate investors can use these sources to fund marketing, make down payments, do rehabs and grow their businesses. Don’t expect this to last forever. So, do take advantage of all the leverage you can get while it lasts.

Just watch out for shady lending and deals in the gray area which could make you a target and scapegoat when things go south. Remember what happened to all the stated income borrowers last time around.

Watch Your Advertising Practices

Facebook just got it with a big suit from HUD. The government agency alleges that Facebook has effectively let real estate professionals and businesses discriminate by providing them with its targeting tools for advertising on the social network. While no one should ever discriminate, many may be accused of it, even though they didn’t realize they were doing anything wrong by trying to market to their ideal audiences. Don’t think for a second that with all the pressure Facebook is under today that it won’t sell out its users and advertisers and give them up to the feds. This may seem extreme, but your financial survival and freedom may rely on revisiting your Facebook ads, promoted posts and social feed and removing anything which shows preference for marketing to any groups of individuals and leaving anyone out.

The Fed has officially begun hiking interest rates. How will it impact you, and the real estate market?

New Fed Rate Hike

The US began raising rates in mid-December 2015, for the first time in almost a decade. Despite the fact that Wall St. has been contracting at just the thought of a hike, and oil prices have only softened, the fed has launched a new campaign to lift rates. The debate has been a catch 22 situation for those in power that have been caught between the fact that we aren’t experiencing real growth, and the fact that low rates haven’t changed that either. A failure to raise rates would kill confidence, but many have feared a hike will only kill off the growth we’ve had. Debates aside we’ll likely see an extended period of rising rates. What does that mean for real estate?

Fear of Rising Mortgage Rates

Major US banks wasted no time in instantly raising prime rate in reaction to the fed move. Many HELOCs are directly tied to prime rate. That means an instant hike to interest and payments for many US homeowners. However, Bankrate.com reports only a modest nudge up in conventional mortgage rates so far; back up to 4%. This upward pressure could grow over the next quarter, and beyond. However, there is often a seasonal dip in mortgage rates in the few days after Christmas for those under contract and desiring to lock in low long term fixed mortgages.

The biggest losers are those with adjustable rate mortgage loans. Fortunately few regular homeowners or long term hold investors have probably fallen for taking out an ARM in the face of a furious rate hike spree. Those that may have may face the need to immediately refinance or sell their properties.

Highly Motivated Sellers

The rate hike certainly puts pressure on sellers. Properties have been priced high based on cash flow and low rates. The numbers are set to dramatically change on many properties. Now is the time for owners to sell fast before the numbers get worse.

Ultimately this is great for wholesalers who may find access to more highly motivated sellers, and motivated buyers, it just might not be as fun for everyone else going forward. Move fast, and make that money.

 

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.

How do real estate professionals and investors need to prepare to stay ahead of rising interest rates? Why is wholesaling the answer? And what needs to be done to ensure the ability to survive and thrive in the new landscape ahead?

While creating a sense of false confidence, and lulling many real estate wholesalers and others into inaction, rising interest rates will come. It is inevitable. In fact, Brett T. Immel and Preston M. Despenas of Chicago based Growth Equity Group recently told Realty 411 Magazine that rising interest rates are the most significant threat to all investors and businesses today.

Rising rates mean rising costs on everything we buy and use. Perhaps most significantly this will mean rising costs on mortgage leverage, rehabbing, and real estate.

The Need to Ramp Up Your Real Estate Wholesaling

With the costs of fixing and flipping properties rising, and holding costs escalating for buy and hold investing most investors will find that they are well served by upping the percentage of their business and income/ wealth building that comes from wholesaling.

Wholesaling will be the least hard hit by rising interest rates, and providing wholesalers are operating efficiently they should be able to preserve their profit margins, if not see them rocket thanks to rapid home price increases.

However, in order to scale wholesaling as a percentage of income and wealth building or business volume individuals and organizations need to establish and concrete their position in the market now. Not when everyone else is trying to get in later.

Let people know what you are doing, recruit lead generators, and lock up strategic partners in exclusive arrangements. Use your website, social media, email, and local meet ups to accomplish this.

Essential Efficiency

Still, as lean as wholesaling can be when it comes to hours required and operational costs, especially with all the perks transactional funding offers, wholesalers do need to strive to achieve maximum efficiency. Those with the best profit margins will always be best positioned to come out on top and stay there.

This also means being able to continue to offer the most attractive deals to end buyers, and ensures they are viable deals for rehabbers and buy and hold investors. Think automation, using transactional funding to act with the power of a cash buyer and close fast, hiring better quality talent, creating systems, and perhaps even putting the icing on the cake by securing financing sources for your end buyers so that they can make offers with confidence.

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