2020 is looking like another fantastic year for most real estate investors. If you have even bigger goals for deal volume and profits this year, here are the financing options that can help you achieve them.
1. Transactional Funding
Wholesaling is about speed and volume. Conventional mortgages and types of funding just don’t work when you need to go fast. Yet, with the right leverage, you can be working a virtually infinite number of deals at the same time, skyrocket your cash on cash ROI, and lower your risk at the same time.
Transactional funding is the optimal solution for this. Get 100% financing for your deals, without any of the hassle of other funding channels.
2. VA Home Loans
While many real estate wholesalers focus on flipping to other investors, selling retail has huge advantages in this market too. You can get a lot more for your properties. A recent change in mortgage lending could really help open up this opportunity even more.
VA home loans have been great for veterans and their families. They provide 100% financing with no down payment, and the ability to financing in closing costs. All with pretty lenient underwriting.
Finally, the VA has just removed their loan limits. That means no cap on how much veterans can finance on 1-4 unit properties. So, they can be used for 100% financing on small multifamily properties for $1M and up. This will also help many veterans start getting into real estate investing.
3. Personal Loans
Many wholesale properties are so cheap that the problem is no end buyers can find a mortgage loan small enough to finance them. Banks don’t want to do mortgages that small. Though they might be just out of range for an all cash purchase.
Fortunately, many banks, lenders and credit unions are being very aggressive with unsecured personal loans. In many cases buyers can go get a $20,000 or $40,000 or more personal loan and pay cash for a property.
4. Business Lines Of Credit
If you are wholesaling to other investors who have a lot of their capital tied up in other deals, you might want to let them know about merchant cash advances and working capital loans. If they’ve been doing business and flowing money through their accounts, they could get tens of thousands of dollars or over $100k to act as a cash buyer.
The more you help your end buyers get financed, the more deals you can sell, and the more of an indispensable partner you become.
"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
"I can't thank you and your company enough for providing funding for our latest project, and right at the last minute. You came through with funding in less than 24 hours and coordinated with the closing agent and attorneys like you had been involved with our project the entire way. I'll know exactly where to call for the funding we'll need for our next project."
- 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."
- Steven Kupecz, Real Estate Investor, TN
"We want to thank you for the exceptional customer service you provided. No one comes close. We had contacted a competitor the same time we contacted your company. Your company responded with in a few minutes while the competitor has yet to respond weeks later even after multiple phone calls and emails. Thanks again for the unmatched customer service."
"We had looked into several transaction lenders for a couple properties we were trying to flip. Your company was the most responsive and had the best pricing. Even though we had logistics issues with the B/C lender, your company acted very professionally and handled our requests beyond our expectations."
"Thank you for your commitment to an excellent customer experience."
- Phoenix Properties, LLC, Ronald Destefani, Investor, PA
"I was studying on how transactional funding works and you guys had the best and most thorough explanations posted so I could fully understand the details in back to back closing. I'd already started setting everything up but your video confirmed that I'm on the right track."
- La'Donna Turnipseed-Scott, Investor, LA
"....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!'"
- T. A. Davis, Investor, NJ
"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!"
- Donna Bauer, The NoteBuyer Inc., Real Estate Investor, OH
"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