How should real estate wholesalers be pricing houses as the market changes?

There are a lot of rules of thumb thrown around about how much wholesalers should offer on homes. The truth is that there shouldn’t be any hard rules. This is a factor that must change over time. If you’ve been bidding 40% of ARV over the past few years, your deal flow has probably been pretty thin. If you were still bidding at 90% or 100% in 2006, there’s a good chance you got stuck with some properties you couldn’t resell.

Price trends are different all over the map too. They may already be in deep dive mode in some cities and neighborhoods already. Others may keep going up for a few years. So, be wary of hard rules.

Be flexible. Be ready to change your offers based upon:

1. Competition

2. Direction of the market

3. Who your end buyers are

There are wholesale buyers and house flippers out there who claim to be offering near market value. Some might get away with it. Some are able to do it for now because the are making money on deals in so many different ways. Though you have to be careful not to get stuck with a stable full of houses that you can’t get rid off. Expect that scenario to take down some very big real estate tech startups in the near future.

If you are buying at the top of the market, there are repairs to do, prices are down 10% and heading down another 10%, wise investor buyers aren’t going to want to be in for more than 70% of ARV. More likely 50-60 percent of ARV. As a wholesaler you may see deals go even cheaper as more foreclosure inventory mounts up.

Of course, having no income is a huge risk too. If there is a lot of competition, you will have to bid aggressively to keep deals flowing. Fortunately, in hot markets you may also be able to flip faster and for more to other investors (landlords and flippers). They may still be willing to pay 90% of ARV or more. You still need to be under that to make a profit.

The most important factor is really going to be knowing who your end buyers are, and who they are going to be when you are ready to close on the B to C side transaction.

Are they house flippers using hard money? Buy and hold investors using cash and retirement funds? Big real estate funds and tech companies? Or retail home buyers needing high LTV home loans?

Buy and hold investors need to make sure they can cash flow, even if rents float down a little. Use the 1% rule as a very rough rule of thumb. That means a $100,000 property should rent for at least $1,000 per month.

Retail buyers may be facing more challenges ahead as mortgage lenders tighten underwriting to reduce risk exposure. We’re already seeing that with government loans. Expect LTVs to come down as lenders identify declining markets. Your buyers will need to be those who have some cash for a down payment, and may be willing to come out of pocket above the appraisal.

How much are you offering on wholesale deals relevant to ARVs today? How are you pricing in downward pressure on prices or surges in competition?

 

It’s becoming impossible to ignore the new housing correction in the works. It brings some big challenges for those in real estate, but also some great opportunities. Here’s what you need to know, and how to make the most of it…

The Bad

Declining property prices aren’t much fun for most sellers. Some key markets have now been in a year long decline. Some double digits could soon really snowball. The National Association of Realtors reports that nationwide existing home sales fell 3.4% in September, after a stagnant August. New homes sales fell for the fourth month in a row. Nationally new home sales are down an average of 5.5%, with the Northeast seeing a new 3 year low for sales.

A large percentage of property owners are slashing their listing prices. Even as of July 2018, prices were down significantly in San Antonio, Austin and Honolulu. Some NY markets are seeing deep double digits cuts.

You don’t want to be stuck in the middle of a rehab project that you hoped to list at a new market high, only to find the bottom has fallen out of the market before you are finished.

The Ugly

By now everyone should be fully aware of these market fluctuations and cycles. Homeowners and investors should be prepared for them  Of course, many won’t be. Worse than the actual declines, is the fear that can grip markets. That fear is usually more damaging than logical corrections. The biggest threat to investors, homeowners and the market is that, doubled with the hangover of 2008, many will give up on buying and homeownership. They just won’t buy. That could be compounded by any downturns in the stock market, wider economy and tightening of mortgage lending. It doesn’t matter if you are buying properties for $1 if there are no buyers to flip them to.

The Good

On the brightside this brings opportunity to buy lots of property from lots of motivated sellers. If they act fast they may still walk away with cash. Lots of individuals and professional buyers have been waiting for this moment to take action too. So do anticipate many home buyers sitting on the sidelines with good credit and incomes. Do expect there are cash rich investors out there who have been waiting for slightly better asset prices. This is especially true when property prices get low enough to generate attractive returns as rentals. This means opportunities to quickly wholesale houses. Get n out and paid before values go down further. All with low risk. It’s just a matter of having the buyers lined up. Those that get working on these lists and relationships now can find this is one of the most transformative moments in their lives for making leaps in income and wealth. Are you ready?

 

How can real estate investors really find out what’s going on in a real estate market?

More new investors are getting into the game, and more experienced investors are finding they have to move into new neighborhoods and cities to get the same returns they were a couple of years ago. To make smart investment moves investors not only need to know the numbers on the deal they are looking at, but what the local real estate market is like too.

There are tons of online tools and resources at our fingertips today. Most of the best known ones are also best known for being wildly inaccurate. The numbers can lie. You can buy properties sight unseen in destinations you’ve never been to and make really good money. However, you can really lose your shirt and get stuck with dead weight that you can’t get rid of either. When you can, you want to get boots on the ground and get a real feel for a real estate destination yourself. When you do, here are five of the resources where you can learn a lot about the local market, without ever having to go online.

The Gym

Head to a few local gyms when you get in town. They will instantly tell you a lot about a destination. What gym brands are in town? How recently did they do their research and choose to make an investment there? This is a lot like tracking Walmarts and Starbucks. What are the people like when you get inside? Are there short term passes available (suggesting the area gets a lot of visitors)? If there are no gyms that may be a red flag that the area isn’t doing that well economically.

The Supermarket

Supermarkets and grocery shopping will tell you a lot too. What types of chains are in town or are moving into town? Is there a Walmart or Whole Foods? Supermarket chains can instantly tell you a lot about the strength of the local economy and whether it is a wealthier area or low income area, as well as what brands are betting on growth there. What types of foods do they have? Just the basics or gluten free, organic and more fashionable luxury items?

The Coffee Shop

Coffee shops are a great place to get the inside scoop on a potential investment destination. Are they serving fancy coffees or the basics? Is Starbucks moving in or shutting down stores there? Are there a lot of deals being made around you and people working online? Are people rushing or have the luxury of plenty of time to hangout? How much are they spending on their coffee? Talk to people and find out how they feel about the market. Are they buying, selling or investing?

The Park

If you’ve got kids the playground and park can be especially great places for some recon. Talk to other parents. Are there a lot of local activities for kids? How are the schools? How safe is it for their kids to run around by themselves? Are they finding enough house with their budget to fit their growing family into or are they thinking about moving somewhere cheaper?

Hotels

Local hotels will tell you a lot about who visits, passes through and lives nearby. They say a lot about housing costs, what type of workers are being housed there to develop infrastructure, and the features that are in demand. The hotel staff can also be a great resource for learning where the average local worker lives, how much they pay in rent, how much they make, and where they’d prefer to live.

 

Have wholesale real estate deals you are still trying to move? Why aren’t the buyers biting?

Finding deals is only half the equation in real estate. You’ve got to be able to resell in order to really turn those opportunities into cash. While wholesaling has grown in popularity, many are struggling to move properties for longer periods. That can mean losing contracts, being stuck with deadweight that ties up vital capital and killing your income. What can investors do about it?

Here are five common reasons people aren’t buying wholesale properties now, and how investors can change that…

Unknown Repair Factors

There is still a lot of inventory out there, and investors are crushed on time to evaluate all of their options. If your property is just a big question mark in terms of repair costs and issues, it can be easier just to skip onto the next deal. Most of the time they are thinking worst case scenario. So, don’t be afraid of scaring them off with the details. They just need to know so they can make an offer. Cosmetics are one thing, but how are is the plumbing, electrical and roof? How urgent are any code violations against the property?

It’s Too Expensive

Are you really offering wholesale pricing? It is important to look at this in terms of percentages and dollars. It should be competitive versus the ARV so that investors can line up appropriate loans. So know your lending market. It should also leave enough dollars to be attractive. A 30% discount on a $50,000 property is really nothing once your end buyer pays closing costs and even does basic cosmetic improvements like flooring.

It’s Too Cheap

Savvy real estate investors know that there are still houses trading out there for under $10,000. Others are going to be very suspicious of anything inder $100,000. That doesn’t mean you need to bump up the price, but justify it. Show them why the deal is so good. Maybe you just need to flip fast, that’s the going rate for local REOs and the neighborhood, or you have built in room for a new roof replacement.

No Trusted Relationship

Simply trying to blast out your wholesale house ads on Craigslist to strangers can soak up a lot of time. It means always trying to connect with new people, build a new relationship, and develop that. Ideally wholesalers will make these connections once, and then just be able to present great fitting inventory to their list who trusts them and who just buy. Focus more on nurturing the list than just flashing your inventory to strangers.

They Know How Much You Paid

One of the biggest hurdles today is that buyers can instantly see what properties sold for online. If you bought it for $40,000 less 60 days ago, they are probably going to think you should get half that (or less). Use double closings with transactional funding instead of buying and then going to market the deal, and avoid this challenge.

 

Who can you be flipping your wholesale homes to now?

If you want to wholesale more properties, wholesale faster, and make more profit, it helps to know who the most active buyers are in the market. There is more than one type of buyer for wholesale houses. Bulk up your list with them.

Rehabbers

Rehabbers and fix and flip investors are still one of the top buyers of wholesale homes. They need this inventory to fuel their businesses and incomes. Having a consistent source of wholesale deals allows them to stay focused on what they do best (fixing). This is becoming even more important as house flippers look for new areas to work in, with more opportunities.

Rental Property Investors

Rental property investors also need to keep their pipelines full of new acquisitions. They are needing to dig deeper and deeper to find house deals where numbers work. Some may want to make renovations and improvements, others won’t.

Other Wholesalers

While it’s important not to get tied up in long chains, other wholesalers with bigger buyer lists, and who can handle more volume may be some of your best contacts. These may be other pure wholesalers, investors looking to owner finance and create new mortgage loan notes from these properties, and even funds.

Retail Home Buyers

Regular home buyers are increasingly looking for wholesale house deals too. Too many other properties are being overpriced, and inexperienced and unrealistic agents and sellers are overpricing and have little in the way of negotiation skills. Today’s buyers want to feel as if they are getting a good deal. Some may take more work than other wholesalers, but they may pay more too.

Non-Profits

Nonprofits and not for profits are also looking for affordable housing supply to supply their users with, or to house workers and those they help. They may even buy your deal in bulk.

Home Builders

Small builders are often finding it more profitable to acquire existing properties and fully renovating them instead of building from the ground up. It can be greener too. Even larger builders often need to piece together larger parcels to put new communities and projects on. It’s much easier for them to work with wholesalers than regular homeowners.

 

Is is smart for more house flippers to be seller financing their deals to retail buyers?

The latest figures from ATTOM Data Solutions’ house flipping report shows that flippers are down to a record low number of deals, only around 65% are using cash for their deals, and it is now taking over six months to turn the average flip. With this in mind, many house flippers could find offering seller financing on their resale properties helps a lot.

Rather than getting easier, there could be more difficult in obtaining home loans for end buyers ahead. Offering to hold the mortgage, do wrap around deals, or short term lease options could all help.

For a start, it can dramatically speed up the resale. Instead of sitting on the market for six month collecting dust, and going down in value in the perception of buyers, advertising seller financing could lead to a very fast resale deal.

Higher resale prices are another reason to consider this strategy. The types of buyers who are most likely to take these offers are not as price sensitive. They know there is a trade off in price versus terms. They are more worried about the ease of getting in, and the monthly payments.

In taking a seller held mortgage, investors are creating a new flexible paper asset. It can be held for ongoing passive income, sold quickly for cash, or a combination of both.

As a wholesaler you may be able to afford to do this if you are buying super cheap assets, say $4,000 to $40,0000. Or connect your flippers you are selling to with rehab lenders and private lenders who will give them a year to pay them off. The more you help your flipper clients, the more they can buy from you.

The owner financing concept can work well, IF sellers are providing attractive and competitive terms, and a trustworthy presentation. Many are not. They are asking for way too much in down payment, are not leaving enough spread in payments for a buyer to rent out the property, and are not squashing concerns about the seller being able to live up to their end of the deal. Keep these factors in mind.

 

With virtual real estate wholesaling being made increasingly easier, investors can live anywhere they want. Where will you choose to live?

Virtual Wholesaling

Thanks to technology, real estate investors can live in one place, and wholesale houses anywhere in the country. It isn’t just possible, but more accurate than it has ever been before. For many it is an increasing necessity to be able to flip houses in other markets, and to stay diversified in multiple markets in order to keep profits up, business growing, and income consistent.

If you’ve got a laptop, or even just a phone, you can do it.

Driving Factors in Where We Choose to Live

As a mobile business owner, it can seem crazy to hear about people living in the street or out of RVs in high priced San Francisco and other cities. There is just no need to live in super-expensive neighborhoods, when you can work from anywhere. Of course, if those are the places you’d prefer to own your own home, and can afford it comfortably, why not?

Yet, for many others, there is far more profit to be retained, and earlier retirement in more affordable destinations.

Other drivers in this decision of where to have your home base this year may include property tax rates, and limitations on the mortgage interest deduction, and state and local taxes. For others it is being near family. It could be lifestyle. If you love the water, then go live in a top boating, surfing, or diving destination.

Or maybe you still want to optimize where you live for business. That may be in the heart of the most inventory right now. Or where the most investors and capital is located, so that you can build personal relationships.

Destinations

Here are some of the trending destinations this year:

Florida: for the sun, homestead exemptions, and no state income tax

Atlanta, Georgia: for a fast moving property market, fun environment, with all four seasons

Detroit: Still one of the most affordable cities in the US, and a great community of entrepreneurs

Nicaragua: One of the last truly affordable countries left in Central America

Dominican Republic: Proximity to US, easy residency requirements, weather

Thailand: Affordability, weather, culture, and a growing fan base of entrepreneurs

Where will you live?

 

Want to keep on enjoying the incredible perks of wholesaling real estate?

Here are six secrets of the super successful over the long run…

Deliver What You Say

If there is one thing that makes or breaks a real estate wholesaler, and the business, it is delivering not just value, but what is presented. You may not have done a full appraisal, or full inspection, but you should represent the product well. Just like you hate walking into a hotel with your family on vacation to find it is nothing like the pictures. Or the opposite can really wow you.

Invest Yourself in Making Your Buyers Successful

The same goes for your sellers too. People can tell if you are just trying to make a buck off of them, or you are really eager to help them succeed. Help them win, and they’ll be able to buy more deals from you.

Systems

To go big, and long in this business, you’ve got to have systems. Systems for sourcing deals, distributing inventory, and making the closings work as smoothly as possible.

Embrace New Technology

Not every investor loves to play around with every new device, or test out new tech in their business. Yet, if is one of the easy ways to keep getting noticed, stand out, be more efficient, and get an edge. That runs the gamut from new phones with better cameras, to funding option, methods of communicating, and lead generation software.

Build a Long Pipeline

Short term thinkers are always desperately looking to close a deal today, and to pay the bills this month (maybe even for last month). That’s an expensive way to do business, and has many pitfalls. The savviest also work on building their future pipeline. Don’t throw away leads, just because they aren’t ready to close yet. If you start nurturing a bulging database now, you can have 10 or more deals coming in every month on autopilot for the years ahead. Treat everyone well, drip market to them via email, Facebook, and mail.

Build Your Brand

Don’t just market at people either. Devote time and budget to grow your brand each month. Then people will come to you. Be proactive about protecting your reputation. Especially online. Roll out content that will keep in front of your customers for years.

 

Co-wholesaling could be the missing piece of the puzzle that many investors have been looking for.

Both new and highly experienced real estate wholesalers could benefit from leveraging co-wholesaling. Whether you’ve been struggling to either find more good deals or buyers, you are looking into moving into new markets, or you just want to take your business to the next level, this may be the strategy that changes the game, and makes it all possible.

Co-wholesaling is basically a joint venture or partnership which allows two real estate investors or entities to maximize their strengths and work together. That can make your resources go a lot further, aid in building and streamlining a system at scale, increase profitability, and open up new doors.

Finding Co-Wholesalers to Find More Deals

If you are doing well at moving properties, and maybe even have a good circle or database of ready and able end buyers, then partnering with others who have the inventory and deal flow may be the missing piece to doing more volume, and profitability.

There are many other wholesalers across the country who have mastered their marketing to sellers, have built referral sources. They just need more buyers to take their inventory. If you can solve that for them, you can find a great win-win. Let them do what they do best, and continue to grow your buyer list.

Look for these potential deal and inventory sources both on and offline.

Finding Co-Wholesaling to Find More Buyers

Others of you reading this may be finding the deals. You may find you are pretty good at sourcing properties at the right numbers, and even find it relatively easy to get the contracts signed. Perhaps the only thing holding you back from hitting your goals is more buyers. There are plenty of them out there. It’s just about connecting with them and building the relationships.

The question is, is it wisest to divert a lot of your energy and resources to finding and developing these buyer channels? Or is it more efficient and profitable to find a few others who already have this part down, and have buyers eagerly looking for inventory like yours?

Summary

By working with others wholesalers can find they are able to gain traction faster, make their money go further, move into new markets with greater ease, and do many more deals. You can call this co-wholesaling and utilize joint venture agreements, create simple referral arrangements, formalize partnerships, develop an affiliate program, or even buy out those who already have the infrastructure you want.

 

What separates the best and most successful in wholesaling houses from everyone else?

Many are being attracted to real estate wholesaling. Yet, there continues to be a big divide between the few who are doing 80% of the business, and the masses kicking around deals without much in the way of results. What do top performers do differently?

Think Big

The most successful house wholesalers are typically those that think the biggest. They aren’t looking to make $100k per year. They are looking to make $100k or more per month. They don’t shoot for a handful of deals per month. They are looking for 10 plus deals each month. They have really big visions.

Serious About Finding Good Deals

Great wholesalers are serious about finding very good deals. They are looking for deep discounts, and fat spreads. They are also looking for houses that they can resell. They are looking for 100% returns, $100k spreads, not just a handful of bills, nor deadbeat properties that are just going to be a nightmare.

Care About Presenting Good Deals

One of the biggest differentiating factors is that they care about being able to present good deals to their buyers, and are willing to invest the time and effort in that presentation. They know that their success and ability to stay in the business relies on it. If they just throw up properties that have big lurking issues or un-insurable titles, they are going to burn their buyers bad. At best they’d lose their reputation and any chance at repeat and referral business. Solid wholesalers want their buyers to be profitable. They want them to succeed, and come running back for more, and for them to easily be able to make a good decision based on the information provided.

They Understand Real Estate Financing

This will make or break investors. There are a lot of nuances in mortgage financing. Wrong assumptions have bankrupted many new investors. Those with the best understanding of it have the ability to move with confidence, and complete deals others can’t.

Invest in Building a Great Brand

In order to have more negotiating power, to have prospects seeking you out, to win great investors and vendors, and to hit full potential, you’ve got to build a brand. It has to be memorable, recognizable, and carry value. Leading wholesalers do this by giving their branding the thought it deserves, bringing in a great team, and putting out quality materials.

Are you considering jumping into real estate wholesaling? Do you have questions and you're struggling to find the answers? Below, you will find the most common four questions beginners to wholesaling ask and the answers.

Is wholesaling illegal?

Most beginners start with this question or some form of this question. They think, it can't possibly be legal because it sounds too good to be true. After all, most of us were taught, if it sounds too good to be true, it probably is.

Real estate wholesaling is legal, but you do need to make sure the right verbiage is used on your contracts. Consulting an attorney for help with your contracts is always a smart idea.

How can I Find a Good Mentor?

Many new wholesalers want someone they can ask questions to, bounce ideas off of and someone simply to be there for them when they're not sure what to do. It's important to look for more than just a mentor. If you don't have value to bring to the table, they may not be interested in mentoring you.

Start taking action by putting out bandit signs, using direct mail marketing, cold calling or doing something else and you'll find a mentor. Better yet, your mentor will find you.

What do I say to a Seller?

New wholesalers often wonder what to say to a seller. You should actually be doing more listening than talking with the seller. Asking questions about why they are looking to sell, how they would like the sale to go and if there are any repairs needed, will help you gain the information you need.

How Much Should I Offer for a Home?

Figuring out how much to offer is a bit of a science and it will vary from one market to another. Usually, the formula is simply ARV x 70% - Repairs - Wholesaling Fee. This will give you the maximum you want to offer, but it could vary a bit depending on the market and how aggressive you want to be.

How Should I Find Buyers?

As a new wholesaler, you probably want to start building a list of buyers. You can start by using other local investors to help with finding buyers before you have your own list.

Building your own list can be done by using ads on Craigslist and a simple Google search for potential cash buyers in your area. You can also pull a report of all the real estate sales that were cash deals in your area. Those buyers are probably going to be your buyers, too.

 

These four questions are commonly asked by new real estate wholesalers. If you're planning to start wholesaling or you're very new to it, make sure you take the time to do your research, gain answers to your questions and build your confidence.

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

This is the season to optimize your real estate business, and make those big leaps in results…

Spring is here. Easter will be on us soon. Then we’ll be in the heat of the busiest real estate season of the year. Those who set themselves up for success now will have a major advantage in the marketplace.

So, what can real estate business owners and investors do now to ensure they take the lead and hit their full potential?

Spring Clean Your Office

Whether you have thousands of square feet of physical office space, or your office space is a corner of a couch and a laptop – this is a great time to clear your space. Get rid of the clutter and optimize your work zone so that you can be as efficient as possible.

Take a day to clean out your devices to free up storage and get rid of distractions. Unsubscribe from junk email lists, ditch apps you don’t use, and be sure files are backed up in the cloud.

Get a cleaner to spruce up your workspace, and perhaps add a few fresh interior design touches to flow with the new season, and to spur your productivity.

Spring Clean Your Portfolio

This is a very pivotal time for real estate businesses and investors. There are many great opportunities out there, as well as some holdings which have certainly already delivered their best performance. Whether it is stocks and bonds, CDs, REITs, rentals or office property, now is the time to sell off the old and reload with the new.

Spring Clean Your Marketing

It is sad to see so many real estate entrepreneurs and ventures with such great potential who are seeing everything derailed by their marketing. For some it is because they’ve been too busy to clean things up. For others it has been getting lost in the mayhem of trying to do everything themselves. Don’t let this hold you down. Get this right, and leap forward with a clean slate. Or everything you attempt going forward will be hindered by this clutter. Brush up on your website maintenance to update plugins, upgrade design, clean up broken links, put in relevant SEO, and increase load speeds. Then clear out all your old blogs and social media posts which no longer match your brand and business model. If you have been managing a dozen freelancers or agencies you may want to streamline that too. Maybe one can do it all, saving you hours a month in micromanagement, while increasing results.

How will you clean your spaces and leap ahead this spring?

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

 

2017 promises to be a big year for real estate. How investors, professionals, and business owners plan now will make all the difference in how much they benefit from the opportunities over the next 12 months.

The U.S. real estate market is definitely entering 2017 on a positive and confident note. The overwhelming sentiment is certainly bullish. That also means it is competitive too. There may be some quick wins to be had while the rest of the industry is still getting warmed back up after the holidays. Yet, who reaps the biggest gains and is still surviving and thriving at the end of 2017 will be those than plan well know.

There are clearly lots of good things happening in the markets, and specifically real estate right now. That has some side effects too. Inflation is a big one. It will catch many investors, agents, and real estate business owners by surprise. We’ve already seen interest rates moving up. Three or more rate hikes are coming in 2017 according to the Fed. This alone means things will get more expensive. Life in general will get more expensive for home buyers and renters, and employees. Hopefully it also means more money in the economy to be spent. Still, it is crucial to factor these rising costs into plans in order to stay afloat and on top of your game.

This will come into play in property costs, and the cost of most types of leverage. That can often be balanced out in the market. Then there are other costs. The cost of building materials, gas, marketing materials, and freelance workers. You have to build these escalating expenses into your plans. Otherwise you’ll quickly be upside down, if not at least be experiencing far thinner spreads than projected. This shouldn’t be a big problem for wholesalers. It may be a little more challenging for rehabbers. Even more so for buy and hold landlords.

With this in mind some will find it highly profitable to lock in contracts and even prepay vendors and contractors in advance before the ball drops for 2017. This will not only hold down costs, but may provide additional tax benefits too. Others might be able to negotiate preferred terms with vendors and contractors by going long with engagements. Instead of month by month print marketing look at quarterly and annual deals. Instead of piece by piece with freelancers consider monthly or annual arrangements. You may get them to put in more effort in investing themselves in your success too.

 

Plan well now. Reap the benefits all year.

Where are the end home buyers for your real estate deals now?

For several reasons we could see a new surge in home buying over the months ahead. So how will you take advantage of the potential for more business and smash through your 2017 goals fast?

More Home Buying Activity Ahead?

Between a new bullish outlook on real estate following the U.S. presidential election, anticipation of higher interest rates, looming tax deadlines, and a generation of ex-homeowners now seeing their credit bounce back after the 2008 crisis, there could be more retail home buyers, investors, and funds looking for properties over the next few months.

You’ve probably already set bigger and better income and transaction goals for the new year. With the best transaction funding investors can really do an unlimited amount of deals. The key is having the end buyers lined up to flip them to. So where do you find the buyers now?

China

Despite what Trump has said, we know he has worked heavily with Chinese investors before. New data shows China continues to grow its investment in the US by billions of dollars. With ongoing questions over the future of Asian real estate, and a brighter outlook for America, don’t be surprised if Chinese buyers and investors continue to be one of the most impactful factors in the market in 2017. A smart way to get ahead of the competition here could be utilizing Google ads to reach buyers abroad.

Crowdfunding Portals

Crowdfunding has been swelling in popularity. It may not be as easy to raise money on these portals for the masses, as hoped. However, those that have been successful continue to have a lot of capital to deploy. Look for these buying sources and get right to the money without worrying about launching your own crowdfunding campaigns. They need the inventory. If you can provide it you might have a match.

Note Buyers

There is still a significant amount of distressed property and paper out there. However, those numbers are likely to keep shrinking. Some note investors may need to begin augmenting their deal flow and incomes by investing directly in bricks and mortar. Many already have the capital to make acquisitions.

Lead Lists

Acquire new targeted lead lists of qualified buyers. Data vendors may have lists of those who recently applied for mortgage loans, data by credit score, and more detailed information on investment appetite and strategy. Use them to send emails, direct mail, or call.

Realtors

Don’t dismiss real estate agents. They cultivate big buyer lists and would love to serve them up fresh deals. Just price in whatever commission rates you negotiate and create more win-win scenarios.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and 100% financing for property wholesalers in the United States.

Want to build your network, ensure you are wired into trends, and boost your potential in real estate? Check out these 23 Twitter accounts, why you should follow them, and then send us your handle so you grow your contacts too…

1. @BestXFunding for funding news and marketing tips for wholesalers

2. @SenseiGilliland for real estate education and tips from a Top 50 REI blog

3. @PropertyShark for real estate data

4. @360Investment operated by author, doctor, and investor Amir Baluch

5. @Apple for how to get 500k followers without posting a single Tweet

6. @PeterThiel for how to get 130,000 followers with a single Tweet

7. @ElonMusk for insight into the life and mind of one of our top entrepreneurs

8. @RENTCafeApts for data and insight on changing US cities and skyline

9. @Realty411netwrk for event info and insight from top real estate industry leaders

10. @MIT_Romeo tips on title, MI real estate, and marketing for real estate pros

11. @finkd Mark Zuckerberg’s once secret Twitter account

12. @BillGates for inspiration on going really big

13. @KatyPerry who has the most Twitter followers in the world, 2x more than Kim K

14. @NASA on thinking really big, and where we may be flipping homes in the future

15. @Instagram since it is now way hotter than Twitter

16. @StatistaCharts for data and statistics on more than 80,000 topics

17. @Realtors for sarcastic Tweets, real estate tips, and more

18. @Google for news on Google maps, new apps, and when to spruce up your SEO

19. @HGTV highlights from the latest reality TV real estate shows

20. @NinjaWithAPen for new real estate books, marketing tips, real estate news

21. @RealtyTrac delivering real estate news, foreclosure and flipper stats

22. @QuoteFancy for daily motivational quotes

23. @TwitterBusiness marketing tips for businesses on Twitter

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

Does it make any difference who you flip properties to?

Some real estate sellers really don’t have a choice who they sell to. If they list a property with an agent, on the MLS, or at an auction, they really can’t pick and choose. If a buyer comes in with a full price offer their agent is at least due commission for that. But house flippers and wholesalers do have some control.

You can choose who you promote your property deals to. And you should.

Note that you cannot, and should not discriminate in any way, shape, or form. That also means you should be able to back up your choices of buyers. Government and regulators are increasingly stepping in, and at least in one area now control how landlords choose tenants. But it is very important to choose.

Why? We aren’t just talking about selecting the best qualified buyer who is most likely to close on time. That’s a given. However, as the market changes investors will find their future in the business is largely dictated by their buyer choices.

It matters for your reputation. It matters for staying out of legal trouble. In turn this will make a big difference in how many referrals you get, how many repeat deals you do, and the volume you can do. If you are tied to a rehabber who does a shady job and just covers up the mold instead of remedying it, or who does dangerous and illegal electrical work, that can come back to haunt you. Not just legally, but having to live with the fact that you had a hand in harming someone else and their family.

While we all want to maximize profit that also means looking at the long term picture. Are your end buyers pulling a ‘Valeant’ and are pumping up prices so high they are unsustainable, and that they will derail the area due to lack of affordability? Or are they helping people get into good homes and investments while making a fair, but very attractive paycheck?

So how do you get the right buyers? One conversation will usually tell you a lot about a person and their motivations. Google is a pretty handy and fast to use tool as well. Though you can also streamline this process and filter your funnel by sourcing buyers from the right places. Instead of blasting out to the whole world, what if you sought buyers from on and offline groups that shared your same values. Who follows the same people on LinkedIn or Instagram as you do? Who attends the same types of local meetups?

This isn’t an easy decision, and it may not appear to put the most money in your pocket this month. But in two years from now it could make all the differences in whether you are still in the real estate business, and how much of your gains you get to keep.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

Regularly attending real estate events is important for all investors, agents, and business owners. But there can be a massive difference in what you get out of them. Here are ten tactics for getting more from every event you go to…

1. Sign Up Early

Most real estate and business events are annual affairs. Some are even more regular than that. The point is that you should be able to line up your schedule early, and plan your year out in advance. This can often yield great discounts on early bird tickets too.

2. Plan Your Trip Well in Advance

Get the best deals on your trip, and the best vehicles and hotels rooms by booking early. Many events will have a limited number of discounted hotel rooms on site.

3. Connect with Others Before You Go

Get the conversation and connections going weeks in advance by joining in on social media online. Use the custom hashtags, find out who else is going, and start getting some benefit way before you go.

4. Decide on Your Number One Takeaway

Whether it is a networking event, expo, conference, or seminar, there is bound to be a ton of information streaming. You simply can’t take it all in, in a useful way. So decide on a main takeaway before you go.

5. Know Your Questions

You’ll probably have privileged access to real estate industry experts that you wouldn’t otherwise get. Some are never reachable, others might normally charge thousands for personal consultations. List your most important questions so that you get the most you can out of it.

6. Load up Content for Social

Real estate events are great for loading up on content for social media marketing. Snap all the pics you can, load up on quotes, and more.

7. Get in Early and Sleep

Try to plan your arrival in plenty of time to get to your room, and sleep off the jet lag. That way you’ll be up early, awake, and operating at your best.

8. Connect on the Spot, Build Lists

Don’t just leave your business cards in vendors’ bowls. Trade contact details, connect on social media channels on the spot, and add everyone you can to targeted lists.

9. Download the Content

Well organized real estate events will send out content afterwards. Download the videos and other content, review, and share it with your team.

10. Take Action

You may find great inspiration, new leads and tactics, but it isn’t going to make any difference in your real estate investments or business, unless you take action. It’s too easy to procrastinate, so put it on your calendar. Schedule a hard date by when you’ll implement what you’ve learned, and automate follow up.

Summary

Real estate events can be powerful tools for leveling up your game. Going prepared and having a solid game plan can make a dramatic difference in what you’ll gain from them. Put these 10 tips in play the next to you go to event and see the difference for yourself…

 

Authored by BestTransactionFunding.com – the #1 source for transactional funding, and hard money loans for real estate wholesalers.

Why is it that the media and some real estate portals seem to have the housing market all wrong, what’s really going on with inventory and the direction of the market and does it even matter for those flipping houses?

Why is the News and Other Real Estate Investors So Out of touch with the Market?

For a start the media often relies on faulted data for its stories and is also clearly influenced by the bias of an array of different motives. On top of this, while national housing statistics present a (really) rough picture of what trends are on a countrywide level they balance out the disparity in some many different markets.

Publicly available inventory is way down in some regions and foreclosures may even be falling in some zip codes, pushing up home prices. In others quite the opposite may still be true and new waves of foreclosures and masses of distressed properties are causing the ‘average’ home price to slide. So what you may be seeing on the street in your market may really be completely different to an investor somewhere else.

However, the real question real estate investors should be asking is…

“Does it even matter?”

Clearly the direction of the market has proven to mean very little to those flipping houses. It may affect buyer confidence but the last 7 years have proven that big money can be made from wholesaling real estate, even in rapidly declining markets.

What about foreclosures? Investors must remember that foreclosures are just one part of inventory. How do you think so many millions were made in the last boom when foreclosures were virtually unheard of and were essentially non-existent?

3 Strategies for Beating the Market

1. Where You Look for Properties

Tight inventory can make it feel tougher but maybe you just aren’t looking at it in the right way? Tight inventory = rapidly appreciating home prices.

2. Diversify

Contemplate how can you get ahead of competition or find other sources of different types of distressed property besides those being foreclosed on for not paying their mortgages.

3. Create Your Own Market

Truly talented and savvy investors know how to create a market for their product, whatever it is.