There’s no question that the real estate market is changing. They say there are always opportunities. So, where are they now?
These four property types are becoming ripe for real estate wholesalers, and could offer the profit margins and volume investors need to keep up their cash flow in the year ahead.
1. New Construction Condos
There has been a speculative building spree brewing in some hot cities for several years. It’s now apparent that is catching up with some builders who have mountains of inventory they’ve been unable to offload. Even despite offering upgrades or paying association dues for years. In many cases their lenders simply won’t allow them to reduce public asking prices. However, they may be bought off market in bulk at deep discounts. Developers want to cash out of projects and focus on their next move. If you can score deep enough discounts, you can have beautiful product, and still move them at a bargain price that is attractive to end buyers.
2. Multifamily Apartments
Many single family home investors have been trying to step up to apartments. Yet, many are still struggling with their funnels and finding the deals. By building relationships, and with better marketing wholesalers can serve up these deals on a platter. In some cases, whole buildings designed as condos could be ripe for reverse conversions for those seeking buy and hold deals for cash flow.
3. Rural Homes
There are disadvantages of going too rural. Smaller buyer pools is a good example. Yet, with prices so high in urban centers, and little house for the money, expect more buyers and landlords to be hunting for properties on the outer suburbs. There is less competition for now, and the cheap prices could produce big spreads.
4. Ultra Luxury Homes
A new home sales price record was just set for over $230M. Other listings could push that record to $500M and even $1B before long. Even though there may be some concerns over a new recession, the ultra wealthy are normally unfazed. They can lose a billion and still be doing very well. In fact, softness in other markets can drive them to invest more in brick and mortar assets.
What will you wholesale this year?
"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."
- Frank Olaitan, Real Estate Investor, MD
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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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- Phoenix Properties, LLC, Ronald Destefani, Investor, PA
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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.
Your patience and persistence were exceptional in dealing with our business interests. Thank you for such great customer service! We look forward to working with your staff, again, in the future. We like referring people to you, as us, our team would have missed-out on an excellent earning opportunity.
Your help negotiating with our title company made our back-to-back deal, finally happen. People noticed on settlement day how effectively and efficiently your part of the transaction was organized and executed. Again, thank you for truthfully being the "BEST" at what you do!"
- Diane McAdams, Mystic Properties, LLC, Real Estate Investor, Pennsylvania
"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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"Thank you so much for working so diligently with me. Your services really are the "BEST". I look forward to working with you in the near future!"
- Ericka B., Real Estate Investor, CA