Is it time you went all in on real estate wholesaling?

How do you know when it is the right time to shift your focus from other real estate strategies to wholesaling real estate? Or to go all in on it in place of your other niches, or use it as your lead to get into real estate investing?

There are many ways to invest in real estate. This is one of the greatest and most profitable times to do it. Just make sure you are getting the most out of it; maximizing your upside potential, and stripping away potential risks.

When You Are Making Most Of Your Money Reselling Or In Equity

Perhaps you are already using a variety of methods of investing in real estate. When was the last time you really sat down to evaluate and compare where you are making most of your money and the best ROI?

If you are making a lot more in equity and reselling, than in rents, then it may be time to switch your focus to just wholesaling.

Perhaps you’ve owned rentals over the past couple of years, but have barely been making a couple hundred dollars per unit. Maybe you are net negative after costs, repairs, reinvesting in improvements and the personal time you’ve put in. If you can make more wholesaling the same types of properties in 3 days, than you can make in 3 years of rents, it’s probably time to change it up.

Construction Costs Are Eating Up Your Margins

Hyper-inflation has been adding 30% or more to the cost of construction materials. More hikes are coming in taxes and labor costs, if you can find good help.

This has already led many homeowners to indefinitely put off home improvement projects, and others to cancel plans to build new homes.

You may make more profit just by immediately wholesaling that property as-is, than trying to rehab or improve it. Not to mention you’ll get paid a lot faster, and be able to roll up and compound those returns more times over the year.

Uncertainty In Rents & Future Property Values

If you aren’t certain that your income from rents will be consistent, or you just aren’t 100% sure where values on flips and buy and hold properties will be in a few months or the next 24 months, then it may be better to sell now and make the gain rather than gambling on the future.

You Can Finance Your Deals & Eliminate Risk

Real estate wholesalers can take advantage of transactional funding to finance 100% of their purchases and even closing costs. It’s fast, easy funding, that means you can virtually take all of the risk out of investing.

 

While there are many real estate investment strategies out there, property wholesaling remains incredibly magnetic. Here are just some of the reasons it is so sticky for mature investors, and a smart choice for getting your feet wet in this industry…

The Returns Are Really, Really Good

The investment returns on property wholesaling are too good to ignore. 100% returns are commonplace. 30-40% returns are pretty easy in this niche. Anything less than 20% is probably underperforming.

Keep in mind that this is with less risk than negative yielding bonds, the volatility of the stock market or uncertainty of crypto or tech startups.

No Renters

This is especially important after a year of lockdowns and a free pass for tenants not to pay their rent, and landlords being unable to evict non-paying renters. It’s not only about performance, but not having the stress or liability either.

No Getting Stuck With The Hot Potato

Real estate prices have proven to be cyclical, just like the wider economy. That means that sooner or later it is inevitable that buy and hold investors and rehabbers that fix and flip are going to get stuck holding property on which the value has dropped out from underneath them. You don’t have to worry about that if you do wholesaling right. You’ve already secured your exit before you get in. You are in, out and paid in hours, not weeks or months or years.

No Hassles With Neighbors Or HOAs

Just as with renters, homeowner and condo associations and neighbors can be an area of great frustration and liability for buy and hold investors. The more you can avoid them, and less time you have to deal with them, the better.

You Are Providing An Essential Service

Wholesalers are providing an essential service for individuals, families, and whole communities. Wholesalers are the ones on the front lines helping distressed homeowners and investors, and helping to improve and preserve neighborhoods.

The bottom line is that if you want low risk, high rewards, low stress, and to be doing something positive, it is hard to do anything but wholesale.

 

The next week may offer a big opportunity for wholesalers to get up their numbers. Are you making the most of it?

There is often a sweet spot for buying property at the end of the year. With some unique regulatory and trend twists, the last week of December could be especially profitable for wholesalers this year. It’s a short window, but one which can help you finish the year strong, and start 2018 even better.

Time to Buy

There is typically a lot less competition for bidding on and buying properties at this time of year. Realtors and home sellers who aren’t in a good financial position or who aren’t familiar with seasonal trends can be extra flexible and open to negotiating and cutting great deals.

Others are looking to make their annual numbers stronger. That can include home builders, real estate brokerages, and asset managers with REOs who are looking to maximize write-downs and losses for tax purposes.

The new tax bill also threatens to hit many with extra taxes in the new year, unless they downsize to avoid mortgage interest and property tax deduction limitations. Then there is the huge capital gains tax hit which will really hurt those who wait until January to sell.

Selling

While some people are too distracted with the holidays, there can be enhanced opportunities to wholesale and flip houses you find. Real estate is a great holiday present. Many executives and workers will be getting big bonuses this year, and will want to invest that too. Some firms and individuals will be under pressure to spend and invest to minimize tax exposure for the year as well. Then there are Realtors who want to get their numbers up for the quarter and year, and lenders who may be more willing to push through loan applications. There is often a dip in rates right after Christmas which can help buyers.

Investors should absolutely take time to enjoy the holidays, but don’t ignore the advantages to scoop deals, and flip them while others are distracted through the beginning of January.

 

The new tax plan could make property wholesaling even more attractive to more investors by 2018.

A barrage of attacks on common tax breaks in the new tax plan could dramatically change the profitability of many individuals’ current investments and financial plans. It might even have much larger and broader impacts on where people live, the types of properties which are in demand, and not, and more. Hyper-versatile real estate wholesaling could be the solution many are looking for in order to avoid the pain, and expertly navigate and profit from the new property marketplace.

Most people have never seen so many changes that directly impact real estate in their lifetimes. Even in the 2008 crisis, there were really only a couple of factors to deal with, even though they were of epic proportions. Under the new tax plan which is expected to begin being phased in by 2018, individuals, investors and homeowners could lose many of their most relied upon tax breaks. That includes property tax and mortgage interest deductions. On top of that many may find they are being double taxed on at least part of their income, due to the repeal of the state income tax deduction. Capital gains tax laws are changing too, which could be a much bigger hit to those who buy large residences and resell within 5 years. Then there are changes like the big boost to the child tax credit which may influence household sizes over the years ahead. On the bright side, business taxes are expected to go down. At least starting in 2019.

Basically, there may be a big shake up in where people want to live, can afford to live, how big of a property it makes sense to buy, or not, and even how they choose to earn money. That can be scary as a buy and hold rental property investor, or rehabber dealing with luxury homes or micro-lofts. However, wholesalers get to be in and out of deals super-fast, insulating them from any coming market changes. They can ride the waves up and down in various markets, or hop from one to the next relatively easily.

As a property wholesaling business owner, there may even be more profits ahead due to lower corporate taxes. Plus, with the availability of 100% financing for these deals from Best Transaction Funding, your ROI or cash on cash returns are through the roof, while risk is almost non-existent.

How will the new tax plan change how you invest and live?

Property wholesaling and transactional funding are about to play a far more vital role in the finances of thousands as the US real estate market shifts…

The head of the world’s largest real estate brokerage, Keller Williams, recently spoke out warning that the outlook for the property market isn’t as rosy as it has been. This follows right on the heels of warnings of softening in the hospitality market as NYC’s One57 hotel swirls in rumors of efforts to sell. In reality we don’t know when a new correction will hit, how deep it will be, or how long it will last. Most agents and investors, as well as consumers won’t recognize it until we are deep, deep, into the correction. It may already be in play, or it may not hit for another decade. Regardless; it pays to be ahead of the curve.

When the shift does hit some will be changing strategies, and direction. Some will try investing overseas before those markets change, others will head back into old fields and careers, etc. Of course US real estate has proven to best for the long run. But not everyone has the guts and finances to hold during softer years. But you’ve got to make money – so what do you do?

Wholesaling houses to those that can rehab or hold as rentals can be the ideal way to augment your income and pick up the slack from any other areas. This can be full time or casually as you come across deals. The beautiful thing about wholesaling real estate is it doesn’t matter what direction the market is heading in. Lock in the spreads and right terms, and the buyers will come.

Regardless of how much cash you have or don’t, transactional funding provides the fuel to do unlimited deals and keep your cash rolling in, and the ability to protect what you’ve built. If you haven’t been wholesaling this is certainly the time to be learning about it, and building your network and brand in this space. That is if you want to survive and thrive in the next couple of decades…

What can real estate wholesalers learn from the hotel business?

Not many property wholesalers focus on flipping commercial real estate. Even fewer flip hotels. But no matter what type of real estate you are wholesaling, there are valuable takeaways that can be implemented to protect, improve, and boost your business. So what are they?

It’s About Expectations, Not Price

A recent study of hotels ratings and social media conversations about various hotel brands revealed that many of the more prestigious and higher end brands actually had the worst feedback. The conclusion was that this is because those paying more, expect more. Those expecting very little were more likely to be wowed by the property and experience. So how can you over deliver a little more?

Continued Bad Service Simply Won’t Fly

Real estate professionals can often find themselves falling into the same trap as old school banks, and the “he who has the gold, makes the rules” mindset. May be you do have great deals, and the inventory others want, but sooner or later consumers won’t put up with it. For example; it doesn’t matter how cheap hotel rooms are on Hotwire if travelers consistently have a bad experience. If they are travelling for a month, and a mistake is made in booking and their money is taken, but no room is provided, or on arrival the hotel says that they booked a single smoking room, when they are actually traveling with 5 kids, opinions go down south fast. Soon it becomes safer and more profitable for that customer to go pay more upfront in order to get more of what they want. If you don’t want to lose business to the MLS, Realtors, or other property wholesalers, don’t let service slip.

You Never Reach a Point When You Can Afford to Neglect Service

The above often happens when things are going well. But they won’t keep going well if bad customer service becomes a habit. One blunder that is made right is one thing. Three or five of the same mistakes, and little effort to repair the relationship is a new (low) standard. It doesn’t how big you are. In fact; the bigger you are often just means you have further to fall, you’ll fall harder, and there will be more people eagerly looking to give you a shove, and to step into your place. Most of us know Expedia and Hotwire, but does anyone remember Travelocity? Travelocity is actually still in business, but few remember the sight. What about the hundreds of wholesale mortgage lenders and even banks that folded and were bought out on the cheap in the last decade? Most of those that are left were basically taken over by the government. Do you really believe the government and tax payers will step in to bailout your wholesaling business?

Online Reviews Are Everything Today

There is so much distrust between consumers and businesses today. And a lot of it is sadly warranted. Today most consumers will check out reviews before doing business with anyone. They won’t settle for the testimonials and reviews you serve up on your website. They know that the feedback can be substantially different on other platforms. And it is so easy to do from a smartphone that consumers can check you out within seconds of meeting you. Are you going to do business with someone that has bad reviews? So find ways to propel and solicit authentic, positive reviews.

Positioning is Every Thing

Going back to expectations – the positioning you and your wholesale real estate deals hold make all the difference in how much volume you earn, and how much profit you can make. You are in control of the value that is put on your opportunities. Done right your positioning can attract more cash rich investors, high volume investors, and can generate more profit per deal.

Every Business Needs a Make Over Now and Again

Have you ever visited what you expected to be a reputable hotel chain only to find the rooms horrible outdated, and the amenities far from keeping up with the competition? How did that feel? How do you feel about that hotel brand now? The same goes for any type of brand. So is it time you gave your wholesaling website, presentation materials, and real estate marketing a makeover?

 

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

Valentine’s Day might seem more like a distraction than one of the most important and profitable days of the year for many real estate investors. For savvy property wholesalers it can be one of the most productive and rewarding occasions of the year…

Maximizing Valentine’s Day Currency for Wholesaling Pros

1. Themed Wholesaling Marketing Opportunities

While some holidays can seem to distract prospects and detract from wholesaling marketing performance Valentine’s Day themed advertising can actually provide a huge boost.

Themed content and blogs can help cash in on the surge in internet traffic. Well thought out social media posts and boosts on Facebook could provide a nice bump in conversations and likes that will have many residual benefits.

Valentine’s Day can also be very busy for savvy real estate professionals that position themselves and their product as a top Valentine’s Day gift. After all what could be better than buying a romantic getaway cottage, condo or cabin for your lover? Or even picking up a whole resort portfolio for renting to love birds year after year?

Using transactional funding from Best Transaction Funding can enable wholesalers to scale quickly at this time of year to fully capitalize on the available business.

2. Getting Away

Unless you are single you are going to be under significant pressure to spend some quality time with your partner. Going half in and rushing an overpriced dinner, with half the date spent on your mobile phone isn’t going to get you any points.

So take the time off, invest the quality time for win you some points for later in the year and recharge for next week. Who knows, you might even uncover some great real estate wholesaling deals on your travels?

3. Give

Having the connections and resources of a real estate investor uniquely positions you to give and give generously.

Some may wish to give property. This could be a romantic pad for your partner, new home or cash flowing investment property.

For the singles it could be giving and volunteering for charity, or giving the gift of real estate education to help life others up and enable them to better provide for themselves and their families.

Don’t let this Valentine’s Day escape you without making the most of it!

Is wholesaling houses the best tool for parents and teens to use for funding college tuition?

Some successful wholesalers would never dream of forking out the ridiculous sums that they see being demanded by what they see as U.S. college scams today. Others if they are honest will admit they wish they had gone, if not for the education, at least for the degree and the connections to get ahead in today’s hyper social society and business world.

Some put the cost of putting a kid through a top university at almost half a million dollars by 2030 (that’s not far away for those having kids now). According to Fidelity Investments most parents will only be able to afford to contribute less than a third of the expenses their children need.

Some of the tools and strategies being recommended for saving for college today include investing in stocks, using 529 prepaid college savings plans, investing through IRAs, credit card rewards programs, and crowdfunding platforms for kids like KidBacker.

Many would consider wholesaling houses to be far superior for gaining traction towards funding college for kids than these above ideas. However, wholesaling can also be used in tandem with these strategies for making all of them work better.

For example money funneled through self-directed IRAs can be used for wholesaling and enjoying building college savings tax deferred or tax free. Proceeds from flipping houses could also be put into 529 plans to diversify savings and benefit from compound interest.

Get your kids investing in real estate and wholesaling housing too. They can begin working with you and using Best Transaction Funding to fund their deals, while you teach real estate knowledge, develop their entrepreneurial skills and sock away big bucks to pay for the best universities and beyond, or at least equip them to provide for themselves and their children if they don’t make it through college.