The S&P Case Shiller Index reports US home prices have hit a new record high, after posting 8 straight months of consecutive gains.

Just how high are home prices in the US now? Why are they going up so much? What does it mean for property investors?

Record High Home Prices

While all real estate is local, and there seem to be many ways to calculate ‘average’, Forbes recently put the average home price in America at over $495k.

Including interest for retail buyers that use financing that means the average home can now cost homebuyers well over $1M.

The average rent households can expect to pay in their lifetimes may well be over $500k as well.

The Ideal Conditions For Real Estate Wholesalers

The mainstream media say that house prices keep going up due to a lack of homes for sale. Of course, high inflation on everything is certainly adding fuel to the fire as well.

Many industry experts, Realtors, veteran investors, and home sellers may disagree with these findings too. Some are certainly seeing transaction volume down, longer marketing times, and buyers wanting to pay less.

Recent bank data shows that there is a mountain of distressed debt growing. Including defaulting credit card payments, auto loan repos, business loan delinquencies, and construction and commercial mortgage defaults.

This signals great distress behind the scenes, with many ripe to be motivated sellers. Together with fast rising prices, and a shortage of publicly marketed units to meet demand, these are the ideal conditions for wholesaling real estate.

Connecting The Dots

There is great need out there. With millions of individuals, households, and businesses needing help. Real estate investors that can help bridge this divide stand to be very well compensated in this market.

While many motivated sellers have not listed their homes, they are out there. Many more would love to, and need to sell, if they can get a reasonable offer. Consider how to identify their distress, and reach and and connect with your purchase offers.

There is plenty of investment capital that needs to be put to work as well. In the form of transactional funding, this money can be very cheap. With current deals on jumbo sized loans coming with as low as 1% interest.

Then it is about presenting this inventory to end buyers. These may be other professional investors, movers seeking to downsize and find more affordable housing, or affluent families looking to protect their wealth in real estate. Find out where they are, and market to them.

Gratitude is powerful. Here are nine things we can all use to leverage the power of gratitude this month.

It’s not always easy to keep up the habit of practicing gratitude as a part of morning routines. Yet, it is incredibly rewarding when we do take the time for it.

Even if things feel tougher right now, here are some of the things we can take a moment to be grateful for before we get into the season when most are focused on receiving and getting new things.

Low Interest Rates

While many might be experiencing the highest interest rates they’ve seen in their adult lifetimes, they are still historically very low. Wait until they hit 14% or 20% again.

If 5% or 7% still seems too high, then check out our current deal, with interest rates as low as 1%.

Opportunity And Ability To Invest In Real Estate

Just having the opportunity and ability to invest in real estate is a huge privilege and benefit. Many people will never realize that they have this chance to control their own financial circumstances.

The Tax Breaks Real Estate Has To Offer

Taxes are not fun. They only seem to be multiplying and going up. Fortunately, along with many other benefits, real estate offers a lot of tax breaks, if you take the time to take advantage of them.

The Freedom Being A Business Owner Offers

Owning your own real estate investment business gives you complete freedom over your own schedule. Many fail to exercise that freedom, and to take advantage of the flexibility or time off it provides. Though you do have control of that.

Convenience

It’s never been easier to invest in real estate. You can find and wholesale homes online without ever getting out of bed. You can get just about anything you want delivered to your job sites to complete house flips in two days.

Humans

As technology continues to take over, and the major flaws in AI, automation, and cybersecurity become even more glaringly obvious, it’s a great time to be grateful for humans. Even if they aren’t perfect either. Those in your family, that serve you, and that work for you, and who are your customers. You can’t make it without them.

Room For Growth

There is plenty of room to do more, and expand and scale what you are working on. Even if you aren’t satisfied with your current situation, be grateful there is so much available for you to do.

The Progress You’ve Made So Far

Even if you feel like you are going to fall far short of your goals this year and there is so much more you aspire to, take a moment to remember the progress you’ve made. No matter how significant you feel it is, celebrate those wins.

How Many People There Are To Help

There are millions of people out there that could use your help. They may need to sell or buy properties, or invest. Each one is an opportunity to grow your business, and to feel great that you are making a difference.

A new court ruling has found that the National Association of Realtors has illegally kept real estate commissions inflated.

This verdict could dramatically alter the US real estate industry, in far more ways than many imagine.

Are Realtor commissions too high? How will this change the model of how properties are bought and sold in America? What does it mean for property investors?

Are Realtor Commissions Worth It?

This particular case in Missouri resulted in $1.8B in damages being awarded. This follows on from other lawsuits and settlements against individual brokerages, and several years of Justice Department investigations.

The main issue publicly centers around NAR having illegally colluded to keep commissions up at 5-6%.

An issue made extra ironic as it is supposed to be the organization that upholds ethics in the industry, and add credibility to agent members. Not detract from them.

Of course, when you really do the math on what Realtors net in a transaction, and how hard they work, many may be barely scraping in a minimum wage income.

Between privacy, efficiency, and negotiation benefits, the best real estate agents do offer great value. They certainly aren’t overpaid. Yet, gross commissions can be expensive, and eat away at your net as an investor.

Changing The Way The Industry Works

This is much bigger than just making NAR irrelevant or slashing Realtor commissions.

Coverage by Bloomberg cites a push towards the UK and Australian models, where commissions are much lower. Of course, this may come with many unintended consequences.

Often overseas there are no agent licensing requirements. Agents get their own listings, and do not cooperate or share commissions with buyer agents.

In turn, consumers have no one protecting their interests. Living and housing costs are dramatically higher. Homeownership is prohibitive in terms of access and expense. Investors abroad prize the current US model, as their local options are normally wealth preservation with very low yields or negative cash flow rentals. This model would erode our national advantage, and would hurt individuals far more than most imagine.

For Real Estate Investors

First, if you’ve been debating becoming a real estate agent before investing, don’t. Skip the costs, time, and going into a contracting industry.

You may still find great value in using real estate agents. You may also find the ability to negotiate better deals on commissions going forward.

This, in addition to end investors having to get used to lower yields, and negative cash flow, can mean a lot more profit for real estate wholesalers.

Now is the time to make your push, as those who control the inventory, will control the market.

Our Fall loan deals with rates as low as 1% can help! Check them out here.

How can real estate wholesalers find more motivated sellers and buyers in this market?

Securing the most valuable and profitable property deals, and getting the best ROI on your time and marketing efforts all comes down to finding and connecting with motivated sellers, as well as buyers.

This requires understanding who is motivated and what trigger points will lead them to convert.

Who Are The Motivated Sellers In This Market?

There are both institutional and individual motivated property sellers in this market.

The overriding theme here is high inflation and high living costs, which could last for many years according to some experts. A factor which may also be compounded by soaring unemployment due to high costs and the rise of AI.

According to Axios, small US banks actually hold 70% of all commercial real estate loans. They also hold almost 40% of all residential real estate loans. These institutions are coming under increased financial pressure as consumers run out of money and demand their deposits back, and default on loans.  They need to convert more assets to liquid cash. Which could make them a prime source of wholesale property deals in the near future.

For those that don’t think they are in trouble, it is worth noting that a coalition of these small banks have been pleading with the government to insure all of their deposits for the next two years.

Then there are all of the individual homeowners who are grappling with financial and emotional struggles.

What Is Convincing Property Owners To Sell?

Owners generally don’t take the action to actually sell and go through with the process unless they are really feeling stress in their current situation, and perceive more relief and pleasure from it.

According to a US News & World Report, the top things keeping people awake at night this year include high living costs, pandemics, gun crime, climate change, and the presidential election.

How To Put This Into Play In Your Business

Utilize the above information to hone in on who your highest converting prospects are likely to be.

Use it to craft your marketing campaigns and in how you pitch your purchase offers.

Then use this same data to understand how to best pitch your properties for sale to meet the needs and desires that your prospects are looking for. Highlight how your properties check their boxes.

Now check out our Fall Loan Deals for financing as low as 1% on your wholesale properties.

What’s in store for real estate wholesalers in 2024?

Once again, the main theme of the year may be uncertainty. At least on the macro level. As well as especially when it comes to home prices and conventional retail home buyer activity.

However, what we do know for sure is that there are several factors influencing the economy and real estate in particular. As well as the opportunities they are likely to create.

Though it may not be until after the 2024 presidential election that real estate pros enjoy more clarity on the direction of the economy and property market, and are able to best plan, strategize and forecast their finances for the following four years.

Factors Impacting The Market For 2024

In 2024 we can expect to see the following factors influence the real estate market:

The impact of recent high inflation on living costs.

Living in a period of high interest rates.

AI and fast rising unemployment.

The ripple effects of escalating consumer distress.

Volatility in the stock market.

A high probability of new national or global crises.

Opportunities For Real Estate Wholesalers In 2024

The above is going to show in through a variety of opportunities for real estate wholesalers.

Firstly, we can expect a lot more distressed property acquisition opportunities, with highly motivated sellers who need to sell very fast.

The wealthy who are benefiting from recent trends will need to put more of their money into real estate to protect it. Both in the form of luxury residences and income properties.

Among the millions of those being negatively impacted by these trends will be many who need to get into real estate to make up for lost income. This may create a whole new pool of end buyers, partners, and potential workers for your investment business.

Take advantage of our 1% Fall interest rate deals, and get your proof of funds to start doing more deals today…

According to Boston Consulting Group and Bloomberg, big fund managers are struggling. As this $100T space faces a revolution, where will the capital go, and how can real estate investors position themselves to benefit?

The Big Issue

The massive asset management industry appears to be facing a major inflection point.

Coverage of the issue reveals concerns that many large financial firms may face extinction in the near future. Their investor customers have been increasingly demanding cheaper, and more passive investment strategies.

At the same time, money managers face the challenge of trying to make more money in a bear market, which has already seen some lose money for 20 quarters in a row.

Reportedly 90% of the additional revenues these firms have enjoyed over the past 18 years is from the rising bull market, instead of attracting new capital from clients.

In the past six years investors have yanked $600B from these fund managers. With Blackrock seeing $13B in withdrawals in the past three months alone.

For Real Estate Wholesalers

As a real estate wholesaler, how can you benefit from this shift in available capital, and avoid repeating the mistakes these dying firms have made.

Don’t Count On Appreciation Alone

Even as a real estate wholesaler and flipper it can be tempting to sometimes make offers based upon a fast rising market. Whereas savvy investors are always looking to build in an equity cushion with their offers, just in case the market shifts mid transaction.

Sell To Those Providing Passive Income Investments

It seems that passive income investments are increasingly trending in demand. Consider how you can wholesale in volume and create a pipeline to those serving the end retail investors in this space.

Maintain Sustainable Margins

Profit margins that are too thin are frequently the cause of businesses failing. It can also be harder to raise pricing later. Be sure you are operating on strong margins in the beginning, with room to offer deals, and still make a profit.

Serve Those Fearing A Bear Market

Whether you believe it is a bear market or there is a new recession looming isn’t nearly as important as what end buyers and their clients think.

If that fear is driving their decisions and where they put their capital, be sure you are catering to them.

This may include altering the price ranges and property types you are targeting, as well as geographic areas.

Be sure to check out our 1% interest rate deals on loans over $600k, and scale your business this season.

This is a fantastic time to be wholesaling real estate. Of course, that means that many others are hunting for deals too. If you believe that there is a shortage of publicly listed properties for sale, that may make it even more challenging if you’ve relied on that for deals in the past.

Here are five more ways to out maneuver and beat your competitors to the punch.

Failing Competitors

Even though the real estate investment remains strong and attractive many started folding their businesses out of fear at the beginning of COVID, then as rates hiked.

Even though they may have stopped actively investing, many have portfolios of properties they are holding. Or at least sizable databases of seller leads.

You may acquire their company, their real estate assets at a discount, or their lead lists.

Insurance Agent Referrals

Insurance agents are among the first to find out when people find themselves in a crisis. That may be a health issue, a car accident, or damage to their properties.

In a few cases their clients may get payouts that make them strong cash buyers for your properties.

In most cases insurance companies do not pay claims. If they did, they wouldn’t be in business or so big. In these scenarios policy holders may have to sell their homes fast for cash.

Lumber Company Leads

This is another untapped referral source. When trees fall on garages or homes, lumber and tree service companies get the first calls.

In other cases these referral sources can tell you when prospects are desperate for cash and are trying to sell their trees cheap. Or where there may be a property which also has a lot of value in timber rights. Money that may be used for helping to acquire or extract extra value your competitors don’t see.

The Unemployed

The AI revolution is creating levels of unemployment and interruption to income at a scale we’ve never seen before.

The vast majority of property owners cannot afford to carry their mortgages for even a month or two without a paycheck.

Depending on your contacts and access to data, you may find these sellers by tracking employers that are making layoffs, through recruiters, new credit defaults, and job wanted ads.

Be The Fastest And  Most Attractive Buyer

Have your proof of funds in hand, along with a contract, and be willing and able to close faster than your competition. Those things can mean a lot more to sellers than the top line price today.

Be sure to check out our Fall Deal with interest rates as low as 1% on loan amounts over $600k.

According to the narrative the mainstream media is selling, house prices are shooting up thanks to a lack of property for sale.

At the same time, common sense, and the data suggests that there is a tremendous amount of financial distress out there.

So, how can you find the houses and do more wholesale real estate deals?

Sure, there are many tools being advertised online for identifying properties and leads virtually. Of course, this may not work as well as it is marketed, and may now be saturated with competition.

Try these ideas instead…

Realtor Yard Signs

It may sound counterintuitive. However, many properties do not sell simply because agents fail to answer their phones or respond to leads.

Try calling on the for sale signs you see. If they answer, you may be able to strike a deal that way. If they don’t, then you can bet the owner is stressed and frustrated, and is looking for another way to get their property sold. Just be mindful of the rules regarding commissions being due.

Old Listings

Brand new listings get all the attention. You’ve probably got alerts to new listings yourself. That’s often not where the real deals are.

When was the last time you scraped older listings on Craigslist for example? Ads that may not be getting any competition. By now the owners may be even far more motivated to strike a deal and offer a discount.

Private Lenders

Private lenders have been incredibly busy putting out money over the past few years. Now many of their borrowers are not paying. Even though there may be equity in properties, and lenders have more than made their money already.

Lenders may foreclose and flip you these deals. Or simply introduce you to their borrowers to work something out.

Blog About It

Social media may be super saturated with cheesy junk, and so many ads that users have become immune to them. Yet, when it comes to homeowners searching for help, they’ll still most likely end up on Google. Which is going to feed them articles, blogs, and websites around their search terms.

Try starting a blog, or reviving and scaling one you’ve already got. Publish some content focused on how to sell your home in a variety of situations, and become the trusted advisor they turn to.

Inherited Property

A grim, but true statistic is that almost 3.5M people die in the US, every year. Based on homeownership rates, more than half of them may own a home at the time they pass away. This alone is a huge pool of properties.

Heirs and loved ones left behind need help. They are often left with a big debt that they cannot carry, and a lot of work. Often they just want to turn those properties into cash as quickly as possible.

However you plan to find your house deals, check out our Fall interest rate deals from 1% for funding your next acquisitions.

Want to ensure your real estate business takes off and continues to flourish in the next few months and years?

It’s amazing to already see the great disparity dividing investors, entrepreneurs, and businesses. Some are going bigger than ever with ease. They are growing into new niches, with $100M pipelines and plenty of deals and capital lined up. Others are already struggling and the fear and doubt that is creeping in could prove self-fulfilling.

Whether you are just starting out in real estate, have been riding the recent bull run but haven’t experienced adversity before, or have been at it for decades, there are both regular cyclical and major macro economic shifts happening.

In order to get ahead, and keep winning and growing, you’ve got to be intentional about it.

It may take some tweaks to your model, or a whole new approach. This is an important time to refresh your perspective and anchor it in what really matters and will make you successful.

Consider these 10 ways to prepare for success in real estate, and avoid being swept away by external changes.

Take Stock Of What Really Works

What has really been working, and has directly created your success so far. Be sure to differentiate between those fundamentals, and the frills that may have come along with it.

For example; it was probably working the extra hours and going above and beyond to take care of those customers, not the Ferrari that got you there.

Remember the progress you’ve made and what you’ve achieved so far.

Take Time Away To Think

There are so many distractions around us. Which is often what leads to making serious mistakes, and continuing to slide into failure.

Take a long weekend away. Detach from the everyday tunnel vision. Gain time to truly think and focus.

Unplug and evaluate. Then take time to see new things, and what’s really happening outside of your own little bubble. See how so many are actually struggling right now, as well as how others are doing so well that they are oblivious to this. See new ways of doing things.

Relist Your Priorities

What is really most important to you?

Above the work, is it your family, a partner, or your own health?

In real estate, which metrics and KPIs are truly most important? Hint; they are probably customer happiness, NPS score, and net profit. Everything else may be a dangerous distraction.

Learn What The Successful Are Doing

How are those that have been through these changes before handling it? Not just what they are saying or recommending, but what are they doing in their own finances and business? What have they done to survive and thrive through changes and challenges in the past?

Is it shifting investment strategy, increasing marketing efforts, or being more prudent in their offers?

Read books by real human authors, with real experience. Join mastermind groups or start your own. Hire the right team for this phase of your business, and be sure you hold onto them.

Make Sure Your Team Gets It

Most founders should be horrified by the gap between their initial vision and efforts, and how the business ends up getting run on the front lines.

Ensure your team knows the big vision, the why behind changes, their most important metrics, and the values that are there as guide rails to get there.

Discern What Will Stay The Same Vs. What Will Change

You’re probably far too behind the trend to slap the ‘AI’ label on your business and hope it helps. Now we even have AI created Coca-Cola. It’s become a cheesy and cringe worthy meme, more than a signal of value.

It can help to sail with tailwinds, yet it is being strong in the fundamentals that make a good and sustainable business. Then you build the marketing on top of that.

Refresh Your Morning Routine

It may be time to shake up your morning routine. Add new important tasks. Ensure it anchors you in a positive and successful mindset to overcome the day ahead.

Be sure to check out our Fall Funding Deals, with interest rates as low as 1%.

More and more countries are developing their own Digital Nomad Visas for the new remote workforce. How might this change alter where people live and work, the dynamics of rentals and real estate? Where might you want to travel and work from as a real estate wholesaler?

Digital Nomad Visas

Now that the workforce has changed to being remote first, more and more people are wanting to flex their new found freedom to travel and work from new places.

With other recent economic changes, many individuals are also being forced to find friendlier and more affordable places to live and work too.

According to one list, at least 58 countries now have some form of Digital Nomad Visa. A type of immigration visa which allows you to go live and work there remotely. Often for between 6 months and 3 years.

The entry requirements and fees for these visas are far lower than for traditional visas and residency programs. You normally just have to prove you make a minimum amount of income each month, or have enough money in the bank to sustain you while you are there. This can range from a few hundred dollars a month to several thousand Euros.

Countries are seeing this as a way to boost their revenues, popularity, and to attract great talent.

Why You Should Try It

While there may be some perks of wholesaling properties in your own backyard, travel is a common thread linked to success in entrepreneurship. It is also completely unnecessary to restrict yourself to only operating locally anymore. If not highly risky.

Travel can give you new perspectives on things, and great new ideas. It can broaden your network and contact database. Then you might just find somewhere you love more for the weather, culture, and which allows you a better quality of life, at far lower costs. Taxes are complicated, but there may also be benefits there too.

Where To Go

In reality, most countries will allow you in on a tourist visa, or just as a tourist without a visa for 3 to 6 months anyway. So, you don’t have to restrict yourself to countries offering Digital Nomad Visas. The US does not currently offer one.

You may want to explore:

Croatia

The Bahamas

India

The UAE

Nicaragua

Cyprus

Greece

Spain

Portugal

The Impact On Real Estate

The current direction of the economy, the AI revolution, and the availability of Digital Nomad Visas all seem to be working together for remote work to have an even bigger impact on real estate.

Even in the US, where we may not see such a visa, we can expect this trend line to impact how cities market themselves and how much of this business they will win. For landlords, it may mean more short to mid term tenants, and professional tenants. Whose needs are also different. They need furnished places with good wifi. They may pay a range of rates from dirt cheap to higher Airbnb prices. Though they are going to pay based on what they can afford in monthly rent, not vacation prices.

Consider how this may influence your real estate wholesaling business, your pricing, and where the hot places to flip houses will be next.

Then take advantage of our 1% Fall Mega Sale, with interest rates on your funding as low as just one percent. Check out the details here.

Everyone loves a good deal. Shoppers of all kinds are demanding better deals and are being even more particular about how much they are willing to pay.

At the same time, businesses are often failing even harder than ever on this front.

A good sale and discount can make your business. A bad one can prove very costly, for a long period of time. This is especially true for real estate investors, from Airbnb landlords to house flipping. Even more so if you are wholesaling real estate.

This is perhaps even more pertinent for all real estate professionals as we enter the annual sales season, from Black Friday through the end of year and after Christmas sales.

What Is A Good Versus Bad Sale Deal?

A good sale is one that provides real value to your customers. One that also catches their attention, and inspires them to take action.

More importantly, it can not only bring back valuable customers, but help win business from new ones. Not just this month, but every year. As well as creating new brand ambassadors who will spread the word to others for you, for free. It brings real ROI for you over the long run.

This is in stark contrast to poorly thought through and fake discounts that may work as a one off, but then burn the relationship, and cost you future business and value.

Sales Fails

McDonalds recently had a big sale fail of its own. The fast food chain hit the media for National Burger Day with the news of one cent or 50 cent burger deals.

Sounds great, right? Many might have thought about rushing off to try McDonalds again after a long time, or taking the whole family. It could have been a huge chance to win new and old business back.

Then came the fine print. This, like many other similar recent offers was only for select customers, those using the app, or rewards members.

That was just bound to leave a bad taste in many people’s mouths.

Instead of building trust and making people feel valued, it meant you’d have to trade countless amounts of your time forever due to spam, as well as your personal information. Much like so many failing rewards programs today. It’s more like penalizing consumers, rather than earning their loyalty by just giving them good deals they’ll want to come back for.

Then there have been marketers and sales companies spamming inboxes with 90% off sales. That’s a little too much. It seems too desperate. How valuable can it really be, if they are going to give it away that cheap? That may erode a brand’s value more than build it.

Fake sales have become another problem. Consumers have become so savvy to retailers hiking prices before big sales events, then marking them down to appear like sales. Now they’ll check out prices in advance and do their research to know if that’s really 50% off of the regular price, or if the company just doubled their prices to make it look like a 50% sale.

These extreme measures and sales can be unnecessary in some circumstances. You’ve got to know what is enough to make buyers be compelled to the point of taking immediate action. In some cases and periods that may just be 10%. At other times it may be 25% or 60% off.

Wholesale Real Estate Deals

What makes an attractive wholesale real estate deal for active investors does change over time.

No matter whether you are operating in the pit of a recession or crisis, or at the peak of confidence and values in the market, remember that while you can fool people once with a poor deal, offering a truly good deal can turn into ten deals a month, every month from a single buyer. Even better, once they know they can trust you to give them good deals, that are what you say, it becomes so much faster and easier to do transactions. In turn freeing up a lot more time, and creating a lot more profit too.

On that note, check out our 1% interest rate deal on your larger sized loans, so that you can apply this and scale your wholesaling business.

Financial distress is growing across America. What’s the best way for real estate investors to approach these property owners to secure great deals?

Financial Distress Is Rising

Current monetary policy continues to try and hammer the economy into submission. We’re already seeing the effects in terms of delinquent auto and business loans, credit card debt, and nonperforming mortgage loans.

This combined with mass layoffs, inflation, and other disasters like hurricanes is only increasing the likelihood of many more commercial and residential property owners falling into despair and foreclosure.

The Best Ways To Approach Owners

Approaching these owners can be a very delicate situation. One which most investors and real estate wholesalers get wrong.

The first thing to remember is that everyone naturally gravitates away from pain, and toward pleasure.

So, showing up scaring them and acting like a vulture or another debt collector is probably not going to get you anywhere. They are already inundated with calls from creditors. None of whom end up really being helpful.

Often this means that avoiding any letters, emails, and phone calls often becomes the least stressful option for them. At least until they are evicted.

If you are going to win them over, you have to show that you are going to offer them a real solution, and a better solution that is more pleasurable, and is worth their effort.

A part of this is also giving them a viable and dignified exit.

Some are so scared of having nowhere to go, or just can’t stomach losing that they will be frozen into inaction.

Can you offer them enough cash in the deal to move into somewhere that they can uphold their lifestyle for their families?

 

Then there is establishing a sense of urgency.

Many of these owners may not seem very motivated to sell. This is often because they believe random help from the president or the sky will provide them a golden bailout and free pass to stay. Or that it may take many years before they are foreclosed on and evicted.

You may have to carefully educate them on the likely timeline and their options. Which is a good opportunity to lay out your own offers. Which may include two or three choices, for a limited period of time. After which they go down.

Then it is all about maintaining the relationship. Being there, top of mind as a trusted advisor when they are motivated enough to take action.

Finance Your Deals From 1%

Be sure to take advantage of our MEGA rate sale, with interest rates as low as 1%. Check out the details here.

New data from Zillow and Bloomberg shows that as many as 90% of home buyers are now factoring in climate and natural disaster risk to their choice of where they are buying a home.

How might this impact the real estate market? How will it affect property investors? How can you stay ahead of it, and use it to your advantage?

Climate And Disaster Risk

The data shows that nationally 83% of buyers are weighing this factor in their home buying choices. Including hurricanes, flooding, wildfires, droughts, and extreme temperatures.

Many are just tired of dealing with the same issues every year, and seeing their lives interrupted, or homes damaged again and again.

Others are just thinking forward as they try to make the best home investment possible.

How Will It Impact The Market?

The most obvious answer is that this shift in awareness and decision making will alter where the most volume of demand is for home purchases and investment properties.

However, a Zillow survey interestingly shows at least one quarter of respondents reporting they are actually moving to a riskier, rather than safer area.

This may be primarily due to other drivers in the current market. Such as rising crime in some cities, and lack of affordability in Northeast states.

We may see old high end housing markets continue to become more dominated by second residences, with buyers choosing primary residences in safer and more affordable areas.

It is not just about geographic risk either. A lot of it is also about specific properties. For example, choosing newer inventory that has been built to higher standards, and at higher elevations. Which in some areas is causing issues and potential devaluation for existing older homes that are now flooding due to run off from higher neighbors.

Staying Ahead Of The Curve

As a real estate investor it is vital to evolve with market shifts like this.

It may influence where you target making real estate offers in the next few months and years. As well as the types of properties you are targeting, and how you formulate and price your house offers.

No matter where you are buying and selling homes, use this as a big highlight in your marketing. Point out security features, like new hurricane shutters, adherence to new building codes, and where your listings have low risk levels compared to your competition.

Check out our 1% interest rate MEGA SALE now, and submit your Funding Request to get your next deal done.

Hurricane Idalia is yet another fresh reminder of how every area has some disaster risk.

As a real estate investor it is all about understanding how to mitigate, balance, and profit from that risk, in the right way.

Every disaster threat, from seasonal hurricanes, to wildfires, and snow storms bring their threats and opportunities. Both before and after they hit.

Pre And Post Disaster Real Estate Offers

Many sellers will be willing to offer big discounts, just to get out and put some cash in their pockets before a coming disaster, or disaster season.

If you have the stomach for it, and good strategy and tactics that mitigate the risk, you can acquire properties at deep discounts that end up not being impacted at all.

Post disaster, many owners will just be too scared to go back, or tired of living through these annual storms, even if their properties were not affected at all.

Of course, you should always have properties inspected after a disaster like this, or price your offers to include the worst case scenario. It is not uncommon for unscrupulous investors to try and cover up flood damage and mold.

Get your Proof Of Funds from Best Transaction Funding now, so that you can get out there and make offers with confidence.

Making Offers With Care

Just because sellers are highly motivated or desperate does not give you a pass to abuse them. Make offers with care and etiquette that help them. While allowing yourself to be fairly compensated for your part.

Just as it would be in pretty bad taste to be calling your tenants demanding rent right in the middle of a hurricane. Or making your team be out on the job in unsafe conditions, without giving them time to protect their homes and families first.

After the storm, you need to consider how you will kindly deal with desperate renters applying or buyers who need a roof over their heads.

Often during the post disaster period property prices can actually skyrocket due to reduced inventory, and thanks to many buyers being rich with cash from insurance payouts.

Submit your Funding Request and get your next deal financed today.

Insurance

Even if not necessary, insurance can be wise in these circumstances. Just understand all of the loopholes insurers use not to payout, and how long the lag time between damage and claims being paid can be. It is not uncommon for that to take years, and lots of negotiations.

Investment Strategy

Some areas will just keep on getting hit year after year. Some will keep rebuilding. Others will grow tired and give up. Or authorities will acquire land and temporarily block development.

Consider whether this is a good area for a buy and hold, construction heavy fix and flip, or just a fast in and out wholesale deal.

Check out our MEGA interest rate sale, with rates from just 1% this fall!

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.

These tech mistakes are devastating businesses, and are setting many real estate companies and investors up for bankruptcy.

Be sure you aren’t copying these blunders that can cannibalize your venture.

Artificial Intelligence

Just as spell check and autocorrect tools still haven’t been perfected and create a lot of frustration some 20 years later, there is still a lot of intelligence lacking in AI tools.

It may be trendy, and we all have to adapt to the times, yet, poorly implemented this is destroying even large multi billion dollar companies rapidly.

The biggest and most devastating issue here is installing AI chatbots and doing away with human customer service. It is just alienating the best leads and long term customers and revenue sources.

Then there is ChatGPT, spinning out cheap low grade content which is no doubt burning years of work and investment in SEO rankings. It may be used for expanding your non SEO content, such as emails, as long as you manually review them word by word. Though overall, it is likely doing more harm than good to most real estate companies. Many may find it costs an enormous amount to recover from these mistakes, if they can escape Google penalties.

Automated AI based decision making tools, such as for credit, also bring more risk than most have thought through. They have not been tested in the courts yet to fully see the liability at stake.

Privacy & Data Protection

Especially when it comes to plugging in new tech tools and automation businesses are requesting more sensitive data than ever. Including IDs, facial recognition verification, and more.

These are an area of massive legal liability. Only collect what you need. Only hold onto what you need. Be sure you are in compliance with data laws, and have the legal team and finances to deal with any issues that arise from data breaches and hacks.

Not Testing From A Consumer Perspective

Do embrace new technology. Just make sure you are first testing it thoroughly from your customers’ perspective, and routinely test it again.

If it is not adding value to them, and making the experience better, it will cost you a lot more than you think the efficiency is making you.

Failing To Hire The Best Talent

The best team wins. You may not be able to afford to keep up with paying current rates of $390k to $900k a year for AI talent. Though you can, and must afford the best business development and marketing managers you can find. Those that can bring years of experience across all mediums, channels, and technologies, and help implement the right choices for your company with a refreshed and modernized strategy and plan.

Failing To Update Websites

If your website is so outdated that it burns teenagers’ and childrens’ eyes, it’s time for a makeover. Today, it’s not only about design in visuals, but also carefully crafting words that sell.

Not Using The Data That’s Available

The recipe for success is combining human expertise and hard data.

Don’t guess what is working in your business and marketing, or believe the mainstream media headlines for what’s happening in the economy or with inflation.

Use the most accurate data you can find. Make sure that it is interpreted accurately, with relevance to your industry and individual business and customers.

Not Prioritizing The Right Metrics

When you start digging into the data it is easy to get lost and distracted with so many metrics.

Focus on your NPS score and real profit.

There is a lot of confusion and misinformation out there on the current state and direction of the economy. Still, the bottom line is that selling your houses faster is still better. If not absolutely vital.

How do you do it?

Price It Right The First Time

All properties will sell if they are priced right the first time.

Do not assume that you can just lower your price later and get the same traction. It will likely be ignored by the best buyers. If it attracts anyone a second time, they are going to see you are desperate, and low ball you.

Terms

Selling and selling a house fast is always a balance of price versus terms. In this environment, terms may be even more important.

Including not only seller financing, but accepting lower earnest money deposits, and being open to negotiating other factors in the deal as well.

Incentivize Agents And Referral Partners

Make sure that you are their best paying customer or partner so they prioritize selling your properties above all others.

Further incentivize them with bonuses for selling your properties within a certain time frame.

This can be far more profitable than having to deeply discount your price later. It enables you to optimize profit, and compound your gains into more deals throughout the year, with far less risk.

Pre-Sell Your Properties

The battle is 99% won already if you’ve built a waiting list of buyers in advance.

This way you can wholesale them in hours, and already have a solid exit, before you even buy.

Be Sure That You Are Marketing To The Right Buyers Now

The market is always changing. It has certainly changed a lot this year already. That means your ideal buyers, and most likely buyers have been changing as well.

Marketing has also changed dramatically due to technology and AI.

Be sure you are keeping up and staying ahead.

This may require getting some unbiased external perspective from a professional real estate marketer. You certainly need to reevaluate your marketing strategies and target customers.

This may require embracing new strategies and channels, and revamping your offers, and site content.

Now both the Fed and Bank of America are reversing their forecast for a new recession. What does it mean for real estate investors? What if they are wrong?

Which Way Is The Economy Headed?

In spite of projecting a $50B loss just a few weeks ago, Bank of America has now joined the Federal Reserve’s messaging that we no longer need to worry about a looming recession.

Recent GDP data suggests that the economy is growing well again. Though other data compilers suggest business tenants are falling delinquent at high rates, and foreclosures are rising again.

Some may say that this disparity is due to misleading averages. With a small percentage of people and companies making outsized profits, and the majority seeing their finances contract.

Of course, while fundamentals are the reality we have to build with, as we’ve experienced in the past, sentiment alone can drive or crash economies and individual market sectors.

What New Optimism Means For The Real Estate Market

New optimism in the economy, especially driven by the Fed and major banks is likely to lead to more interest rate hikes, as well as an easing of lending. With more private capital flowing as well.

In the current environment, this would also mean fueling inflation. As well as the potential for more hiring and salvaging jobs that may have been in question a few weeks ago.

This would support more confidence in buying and leasing both residential and commercial real estate. In turn, driving up prices even further.

What Happens If The Experts Are Wrong?

Of course, those top headline news stories are not always something you can rely on. No one gets it right 100% of the time. Especially when it comes to pinpointing turns in economic and market cycles.

If this rebound does not appear, then we could see even more layoffs, loan defaults, and bankruptcies.

Perhaps what is most important as an investor is to remember that every segment of the market, and every location is on its own timing in the cycle. It’s about finding the gaps, and bringing together the distressed opportunities and motivated sellers, with motivated buyers who see the value in paying more. Focus on this, and the fluctuating forecasts don’t have to impact you and your income or wealth. Decide to control your own destiny.

The Fed’s latest hike puts interest rates at their highest level in 22 years. What does it mean for the economy, property market, and investors?

 

Higher Interest Rates, More Economic Turmoil

With the Fed saying they do not expect a recession, the odds of further rate hikes in the near future seem even higher.

The officially published numbers put economic growth well ahead of expectations. Even though many business owners would disagree.

This may well be the result of misleading averages. In which a few that are outperforming at great scale are masking the distress and decline of the majority.

The same also appears true of the housing industry. Where some markets continue to experience 40% plus annual growth. While others are seeing steep declines in how much buyers are willing to pay for properties.

Whatever is happening behind those headline data points, we can expect that current monetary policy is going to make credit harder and more expensive to get than any other time in many people’s and company’s lifetime.

How do you deal with this as a real estate investor?

Use Short Term Real Estate Financing

If you are wholesaling properties in days or hours, then high rates won’t hurt you.

It’s just a problem for those that get stuck in longer than expected renovation and construction projects, and long term hold landlords. Who should not be counting on rents and resale prices going up forever.

Transactional funding is probably the best example of great short term real estate financing.

Find The Distressed Owners And Sellers

There are millions of businesses and homeowners already being hurt by high inflation, high interest rates, and mass layoffs. Find those in distress and help them.

You may focus on the lowest hanging fruit, for example those already in foreclosure. Or get ahead of your competition by looking into the leading indicators of this distress and reaching them earlier in the journey. That may be looking at the amount of debt they have, or their location.

Find The Hungry Buyers

There is still no shortage of hungry and interested buyers. Match them up with your deals.

Again, you can hire a better part time CMO or marketing manager to get your listings to stand out above the rest. Or you can find them early and create waiting lists. Hone in on the triggers that indicate they may need to move or buy something soon. This could be mass layoffs by company, deteriorating metro areas with high crime, or rising taxes, and patterns of actively buying investment properties.

If you’ve been laid off, see it coming, or have even just had your hours and income cut back, is wholesaling real estate the answer?

Mass unemployment is snowballing faster than most realize. It’s a domino effect that isn’t just going to wipe out far more jobs, but also most retirement accounts that are not anchored in tangible assets.

If you or someone you know is in the path of this financial avalanche, wholesaling real estate may be the only thing to cling onto in order to survive it.

Mass Unemployment Is Coming

It’s already surging under the radar of official statistics and lagging data. Don’t be surprised if we exceed 20% unemployment by next year.

Consider that out of just over 330M people in the US, only just over 60% of those have been participants in the workforce.

Then look at all the big corporations and tech companies that have been laying off tens of thousands of employees. Including Goldman Sachs.

Then you have AI and automation replacing your gas station and grocery store clerks. Then soon all of your delivery drivers, warehouse staff, and uber and truck drivers.

On top of that the Bureau of Labor Statistics puts around 10% of the entire population working in customer service. About 20% of the working population. All of whom could be quickly unemployed by new technology.

Then another 18M freelancers working on jobs that could soon be replaced by robots. Even if those robots do a terrible job.

In turn, the fallout will force other businesses to fold and make layoffs.

With hiring freezes in place, don’t count on finding another job.

What Can You Do?

You can’t just live off of your savings. You can’t take a job that doesn’t keep you ahead of real inflation. Which by the way is still up by high double digits. These are just paths to a slow financial death, and a lot of stress and sleepless nights.

Entrepreneurship and investing seem to be the only viable answer. To be creative and find a way to create your own income, without relying on anyone else.

Of course, most businesses still have high startup costs, and are slow to produce any meaningful income.

Trying to sell enough products on Letgo or Amazon to pay your bills is going to take a while to build up.

Real estate obviously stands out as an answer. Though most do not have the very, very deep pockets needed, or capital of their own they can afford to bet on rental properties and fixing up and reselling homes. So, what’s left?

Wholesaling Real Estate

For most, wholesaling real estate may be the only thing that can save them.

Using transactional funding, you can have 100% of your deals financed, including closing costs. Even if you’ve taken some credit hits lately.

This is a real estate strategy that allows you to get in, out and paid, in just days. Providing anywhere from $5k, to $50k, to over $500k in profit per deal.

You probably don’t need many of those each month to replace your old income.

Now is the time to get ahead, even if you haven’t been laid off yet.