Foreclosure Inventory Drying Up: Where are the Deals Now?
Florida which has notoriously been home to a quarter of the nation’s foreclosures saw a 62% decline in foreclosures during 2011. Add to this a new report by the Commerce Department showing housing inventory levels are at a better than healthy 5.6 month supply and it is obvious that real estate investors need to begin brushing up their marketing plans, negotiation skills and tweaking their investment strategies in order to continue finding houses to flip.
The threats of masses amounts of looming ‘shadow inventory’ seems to have dissipated, with lenders taking a proactive approach to finding other ways to pass off REOs in bulk and preserve home values. A few months ago the biggest problem for real estate investors was weeding through the flood of short sales, foreclosures and REOs on the market. Now the issue is fighting the competition for a crack at the best deals and hoping that bidding wars don’t drive prices too high.
So what can real estate investors do to get ahead of the competition and find deals that still make sense to flip?
Getting on the bulk REO train is one way but it also means having huge amounts of cash and being stuck with properties the banks have already been unsuccessful in selling.
At a minimum investors need to be looking into ways to automate their sourcing and bidding processes in order to keep deals flowing. This will also make it easier to cover larger areas. Some parts of the country are simply getting very difficult to find wholesale priced deals like Miami and San Jose. Looking to those regions which haven’t felt the rebound yet and which aren’t so hot with foreign investors like the Midwest could hold easier deals.
While Realtors and banks may have been easy sources of discounted properties to pick from for the last two years, those investors who start getting better and testing direct marketing to individual home sellers could put themselves ahead of the wave of new investors jumping into the market. Test copy, test packaging, test phone numbers and timing in order to obtain the maximum ROI and make budgets go further.
Finally, put together a pack of ‘bird-dogs’. Enroll everyone you can in finding you great homes with equity and profits to be made. If you pay them based on you flipping the deal successfully using flash funding it doesn’t matter how much you offer. It could be $5 to someone overseas scrapping property records all day or $500 to $1,000 to some local partners.
Investors just must realize they can’t wait. Everyday more people are jumping back into real estate investing.
Top Funding News
|
|
|
|
|
| Linked In | You Tube | Google+ |
"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
