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Real Estate Wholesaling: How To Stop Buyers & Sellers Cutting You Out

by blogger1
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on Thursday, 15 March 2018
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How can real estate wholesalers stop end buyers and sellers from cutting them out of the deal?

One big issue in the world of real estate wholesaling today is end buyers and sellers working together to cut investors out of the deal, and go behind their backs. They’ll connect, and make a separate deal on the sale, without having to give the wholesaler their profit or assignment fee. According to some real estate brokers this has also become more common in real estate in general over the past few years. It’s sad, but true. Going through all the work and investment to secure a deal, and then to be robbed and conned out of your compensation for all of that doesn’t just hurt. It is very expensive and can bankrupt you if it happens too often. What can you do about it?

Peer Pressure

Positive peer pressure and leaving appropriate online reviews can help. Don’t do business with those who have cut other investors out of their deals. There is no reason they won’t do the same to you. Leave appropriate reviews about the situation online to warn other investors. This may be a longer term play, but it will only get worse if good investors don’t make the effort to protect the industry.

Contracts

Make sure your contracts are clear and in writing. Consider including clauses which will deter these situations. Perhaps expanding the length of time your assignment fee or profit applies, and even if the deal falls apart. This may be hard to enforce legally, and is something you must consult a real estate attorney on every time. Yet, it may be a good deterrent.

Double Close

While this issue can come up in any scenario it is probably most common when wholesalers are trying to assign their contracts, and when buyer and seller find out about each other and the difference in prices. This can be avoided by using two separate closings. You purchase the wholsale property directly from the seller, and then have a second back to back closing with your end buyer. Normally this can be within 72 hours. Using transactional funding you don’t need to have your own cash or a conventional loan to do it.

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Tips For Tapping Bulk Buyers For Flipping More Homes

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on Wednesday, 18 June 2014
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How can real estate wholesalers tap in to more buyers and well capitalized bulk buyers for more volume now?

New data has shown endless tracks of discounted homes and foreclosure properties still available. Armed with the Best Transaction Funding the only thing in between reeling in bigger profits and where wholesalers are now, is tapping into more highly qualified buyers.

So how can you find them?

1. Source Cash Buyers from Recent Purchases

One of the most common ways of finding cash buyers to wholesale properties to, is by sourcing those which have recently purchased area homes for cash. This is often followed up with a direct mail campaign.

2. Buy to Rent Lenders

Numerous ‘Buy to Rent’ lenders have popped up in 2014. They are well capitalized and eager to put their money to work, funding buy and hold investors in making new acquisitions of single family rental homes. Many of these lenders may be only happy to make introductions in order to create new lending opportunities for themselves.

3. Title Companies

As with lenders, title companies will often share their records and lists of buyers with real estate investors in order to drum up more business. Work on developing relationships with these reps.

4. Local Meet Ups

More and more private money lenders are reportedly attending local real estate investor meet ups. As a wholesaler these in person networking events can be gold mines for finding buyers and putting together deals on the spot.

5. International Property Shows

International property shows are frequented by deep pocketed real estate investors with billions of dollars up for grabs. Top international shows can provide a great combination of vacation getaway, competitive research and direct networking with serious cash buyers.

6. iBeacons

Apple iBeacon technology is specifically being rolled out for the real estate industry, enabling brands to push alerts to passing mobile devices, alerting users of deals.

7. Mobile Push Notifications

A vast number of retailers now use mobile push notifications to alert consumers to new deals and sales. Why not use the same strategy for marketing hot wholesale property deals?

8. Blog, Blog, Blog

 

Too few real estate investment firms are taking their blogging seriously. This is an essential pillar of inbound marketing, and is a must, especially for those not embracing the most edgy technology.

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The Spreads For Real Estate Wholesalers Just Keep Getting Better...

by blogger1
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on Friday, 11 October 2013
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While some media pundits have recently raised questions as to whether the strong housing rebound will be detrimental to flipping houses a variety of trends and factors appear to be widening spreads for even further.

This week Market Wired can a story on a small Southern California investment firm which has tapped $50 million in private equity funds from Colony. Rather than using it to go after distressed property, the firm announced it will be acquiring already updated homes and plowing an additional 50 to 100% in further luxury improvements in them for resale.

Other passive income investors have been getting pulled into build-to-rent programs which land them with ‘deals’ priced above market and face having their money sit idle for months or years during construction before ever seeing a penny in return or cash flow.

Meanwhile Detroit seems unsure what to do with its $300m in redevelopment funds while sitting on 78,000 abandoned properties. At the same time residential mortgages in default top $210 billion, with a small fraction of this number represented by actual REOs. The rest are still ripe for picking up in a variety of ways.

Still, visibility seems to remain the issue which holds many wholesalers back from reaching their full potential and deal flow. The buyers are there, eager to pick up everything they can, and are surprisingly hitting the internet crying out for wholesale property contacts.

It’s on those investors with the inventory to step up and demand more visibility in order reap the rewards of the market. If you are not seeing all of the volume you’d like it is not the market, not a lack of demand, and with BestTransactionFunding.com to provide all the liquidity needed the only thing holding you back from more business and taking full advantage of the market is getting found by those that want the product.

To bridge the divide consider Twitter’s new advertising tools, press releases, SEO rich content, Google Adwords campaigns, and expanding your LinkedIn network.
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