2015 is shaping up to be a sweet year for real estate wholesalers. New inventory, more buyers, and new loan programs are all aligning to make flipping houses a highly profitable endeavor for those that know where to look.
Finding Wholesale Deals
There’s no shortage of wholesale deals out there. If you are coming up short handed check out these four options…
Zombie Foreclosures
It’s no secret that foreclosure activity has been spiking. However, there are still tens of thousands of distressed properties that remain in limbo. In many cases owner – borrowers left years ago believing they had already been foreclosed on. Many are finding out that the bank still hasn’t followed through on repossessing them. That costs money and adds liability. That means a massive pool of properties which aren’t even being marketed for sale. They shouldn’t be too hard to spot. And by tracking down the owner or lender holding the non-performing mortgage debt great win-wins could be struck. And with no competition.
HUD Homes
HUD auctions are still churning out deals. Many have already had some rehab work done to them, and the earnest money requirements are minimal. They can be a great choice for those working with minimal capital.
Foreclosure Hot Spots
While national real estate statistics may mask the reality on the street, there are many counties battling foreclosure as if it was 2008 again. RealtyTrac reports foreclosure particularly high in MD and NV. In some counties around 1 in every 80 units is in some stage of foreclosure. That’s a lot of potential wholesale deals.
Areas Receiving Deferred Investment
There’s a 600 home community on the Delaware shore that is the perfect example of this. According to local custom home builder and renovation firm Turnstone Builders; this 3 mile stretch of beach is now receiving the benefits of a new $63M federal investment. The beach widening project is reportedly doubling local home asking prices from around $500k to $1M. And the project is just beginning.
Why Should Real Estate Wholesalers Care about End Loans?
CT Homes’ JD Esajian of the Flip This House TV show just launched a new two part report on The Number One Financial Threat in America. The report highlights how renting is becoming unsustainable, and how much cheaper it is to buy homes. WA real estate expert Joe Tafolla highlights how thousands of individuals can qualify for no down payment financing, and tens of thousands in down payment grants. Even if they are recently out of foreclosure, bankruptcy, short sale, or have credit scores as low as 640. Many others could find a combination of hard money loans and seller financing the way to get back into homeownership.
This can help wholesalers boost direct sales to retail home buyers for maximum profit, quick flips, while helping to provide affordable housing and reduce the hardship of skyrocketing rents.
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.
"I want thank you for the excellent service I received from Best Transaction Funding.The quick response I received from your company from the beginning of the transaction and to the end was unbelievable. I also want to give a special compliment to you as well. You went to great lengths to keep me informed and gave my title company all the information they needed to complete a successful closing. I cannot express how thankful I am. Such service builds great working relationships. I will definitely recommend Best Transaction Funding to all my fellow investors. Thank You."
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- Dave Pricken, Real Estate Investor, NJ
"Thank you so much! I just had a talk with our Realtor on both properties and told him amazing things about your company!... Normally I rehab the houses and re resells them. I just don't have the patience for that work anymore. This [transactional funding] is such a better way for me and less stress."
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"....a few months back, I happened upon a video, on your site, regarding the use of transactional funding with Hud properties; and I found myself replaying the video over and over because of the value that I saw in the message...it actually explained the process, step-by-step on how to submit a Hud deal by using transactional funding. Once I completed the video, my initial response was to take immediate action by duplicating what I had learned from the video into real time. So I did some research on properties in a market where I knew I had buyers; and put together a hud deal. I then located a realtor able and willing to submit my bid online and within a couple of days, to my surprise, received a call telling me that I had won – my very 1st Hud bid."
"To you I say, ”KUDOS to Best Transactional Funding and Thank you for providing the education and services to Real Estate Entrepreneurs like me. Please keep up the good work!'"
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"You each deserve high marks for your wonderfully quick response time to each of our questions and requests! You hit home runs with us! Your application system was easy to use. Our deal met your qualifications and every time Rob Kozak or any member of Mystic Properties, LLC phoned, we received a "real" person dialing back to speak with us.
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"Boy, you guys are impressive! I can’t thank you enough for scrambling and getting my deal done at the last minute like that. You and your team were awesome!"
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