Wholesaling real estate remains the best investment strategy for investors this year. Check out how it is stacking up against other real estate plays that may not be as attractive anymore.
Many real estate investors are searching for and debating the best moves to make in this uncertain environment. While all traditional real estate investment strategies can still work, and are for some investors, more are looking to lower their exposure to risk, increase their upside, and stay ahead of the curve.
New Construction
While many builders and developers are still busy building, construction material prices are up significantly, and only appear that they will continue to rise in the near future. That in turn means the prices of new properties are up significantly. This is risky as a builder. Pre-construction investors investing in individual units have also found sellers changing terms and prices on them after a contract is signed, or are terminating contracts to sell for more to someone else, eliminating all of the returns they were counting on.
Rehabbing
Construction costs are also hitting rehabbers and fix and flip investors. This is on top of the volatility of not knowing how local markets will continue to perform and the direction they will trend in. Unless flippers are in and out in days instead of months this leaves them very exposed to changes which could derail their planned exits and profits.
Rentals
While some types of rentals are certainly performing, and should continue to do so, the events of the last year have shaken up rental property investors. They never expected they would see mass eviction bans at this scale. They are worried that if this was possible, anything could be possible in the future. It’s not the safe or secure play it was before 2020.
Tax Liens
Tax liens used to be a lesser known real estate strategy. Now between big funds using them to access inventory, and gurus turning masses of novices onto it, investors are reporting auctions are overcrowded, with no appetizing profits to be made.
Mortgage Notes
Much the same of the above applies to institutionally originated mortgage notes. There are exceptions for privately originated mortgages. Though investors are still scared the government could change the rules on them too.
Wholesaling Real Estate
Wholesaling offers high returns, the ability to get in and out before the market changes, and access to leverage. There are both motivated sellers and buyers. If you don’t buy in until you already have an exit it is really hard to lose with this strategy.
"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
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"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
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- 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