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Hottest Markets For Flipping Houses Right Now?

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on Tuesday, 01 November 2011 BestTransactionFunding
So where are the hottest real estate markets for investors flipping houses today?

Some of the hardest hit markets like Phoenix, AZ and Las Vegas, NV are starting to attract a lot of attention, especially from Canadian buyers. With many home prices in Las Vegas down 60% and similar discounts available in Arizona it is hard for many to resist the urge to buy. With bargains this great there is definitely plenty of room to flip wholesale properties or turn them into turn key rental properties with tenants and management provided for those looking for hands free, cash flowing investments.

Recent statistics released by the California Association of Realtors show that available REOs appear to be drying up, suggesting that higher prices should be on their way soon. Though with such a large state you have to really take a close look at data on a local, zip code level before jumping in.

However, real estate investors who are looking for a faster turn around and bigger spreads may be more interested in areas which are already seeing the biggest rebounds. Parts of the country like southwest Florida, especially around Ft. Myers have continued to lead in terms of home price increases, yet offer amazingly affordable deals. With such low prices and great spreads on rental income the potential buyer pool is massive and flipping to other investors is easy too.

However, it is Miami that is really standing out for rapid growth with both transaction volume and property values rising. Inventory has dropped 65% from its high, condo sales are up 76% and it is believed that by the end of the year Miami will see a new record set in volume, which even exceeds that set during the height of the bubble.

Of course savvy real estate investors who can screen properties quickly and have access to a great transactional lender can find deals all over the country but these markets may well be worth checking out.
Tags: wholesale properties, real estate investors, flipping houses, transactional lender
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How Concerned About Shadow Inventory Should We Be?

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on Monday, 17 October 2011 BestTransactionFunding
‘Shadow inventory’ is a term being thrown around more and more in the news. Is it something that real estate investors should be worried about or is it just more scaremongering?

Shadow inventory are the properties that banks have foreclosed on or which are being foreclosed on and are not currently actively listed for sale. Some have come out in the news proclaiming that this additional inventory potentially threatens to further damage the housing market and weaken home values due to over supply.

Currently there are around 3.5 million properties for sale in the US and we are on track to see approximately 5 million units sold this year. Not a bad ratio at all. This puts us at about 9 months worth of inventory or 3 months more than were we would like to be at in a healthy real estate market.

Right now we are on the right path but the worry is that more homes coming on the market could skew the picture. Some have thrown out numbers as high as an additional 3.5 million properties which could come up for sale. However, when you actually dig into these numbers they are based on a lot of assumptions and not what is likely to happen. The banks certainly are holding a lot of additional inventory which is slowly making its way on to the market. This is actually smart for them to do strategically and will be great for real estate investors as controlled release will keep values up yet continue to provide bargain priced wholesale properties for several years.

However, many of these news articles are trying to count homes which have just fallen delinquent on their mortgages or have just received a notice of default. Note that this can happen on properties which are just 30 days late on their loans, leaving plenty of time for homeowners to catch up on their payments. Many more of these homeowners are likely strategically defaulting in order to motivate lenders to grant them loan modifications and have no intention of letting their homes go. Others will sell quickly as short sales especially with banks like Wells Fargo no openly offering $10,000 to $20,000 to homeowners to hand in their keys amicably.

So the bottom line for real estate investors is that there will continue be many deals to be done and that ‘shadow inventory’ is probably not as big a threat as some sensational headlines would like to make out.
Tags: loans, mortgages, short sales, real estate investors, shadow inventory
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Lessons For Real Estate Investors From 9/11

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on Monday, 12 September 2011 BestTransactionFunding

9/11 is not an occasion to be taken lightly and is a day that we should all recognize and remember forever. It has meant a lot of changes for all of us in many ways, including many changes in the business world. This leaves us with a few important lessons for real estate investors.

Firstly, just as rebuilding on the world trade center site is a great way to send a message to our enemies and to literally rebuild our country and fight back against the damage done to us, so is flipping houses. Helping the housing market to recycle foreclosures, renovate run down properties, create jobs and produce disposable income which can help improve retail numbers all assists in rebuilding our economy. Whether on not you believe in the wars we have engaged in, if your boots aren’t on the ground overseas, it is your duty to help the nation and if you can make a handsome paycheck while doing it, then all the better.

Whatever your view of the current leadership or how we got into the state we are in now, it pays for all of us to do our part to keep this country strong. If not for the good of all, to help those in need or out of patriotism at least because it will benefit you in turn. The better the economy, the more home buyers, the faster the appreciation, the easier financing becomes and the more money you will make from real estate investing.

However, in order for you to accomplish this and to ensure the longevity and profitability of your real estate investing activities you must build a bullet proof business. A big part of this is ensuring your business continuity through having the right tools and having a sustainable real estate investing system. This means taking advantage of cloud computing, toll free numbers or Internet phone services for connectivity and using consistent, easy and fast funding sources.

Tags: real estate investing, funding sources, real estate investors
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Effective Tactics For Marketing To Distressed Homeowners

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on Wednesday, 17 August 2011 BestTransactionFunding

Once you have your transactional funding lender lined up and you have potential buyers lined up to flip houses to it’s time to focus on marketing to distressed and motivated homeowners.

What are some of the most effective marketing tactics for reaching these potential sellers that being used by the top real estate investors today?

Many of the most targeted lists you will get your hands on unfortunately may not come with phone numbers. One of the best ways to reach them is with a direct mail campaign. Forget postcards just because they are cheap and glossy. If you are working on a tight budget then you will find that handwritten and addressed style letters work incredibly well. If you can find someone else to do the writing though in order to maximize your time. Your teenager who wants shopping money, a neighbor who needs to make a little extra on a part time basis or a stay at home mom or dad. Give your letter a personal tone, though consider using toll free numbers to test different versions of copy, for capturing caller IDs and assigning leads to your sales staff if you have them.

One issue you may come across in your hunt for new seller leads is that while some attorneys, title companies, agents and insurance reps may want to share their client’s info with you, they may feel they are restricted in the personal information that they can share. The easy way to get around this is to run email campaigns as joint ventures. Have your partner send out your message to their database as a personal recommendation and you can even include a copy of your Proof of Funds letter from your transactional lender so they know you are serious. This is far more powerful than cold marketing, not to mention it can be free. Offer your joint venture partner a referral fee or send out an email message from them on their services to your database in return.

Another version of this marketing strategy is to put together a newsletter either as a mailer or in email form and have several of your strategic partners sponsor it so that it costs you nothing. Build subscriptions and readers for it online by enticing home owners with valuable content that is applicable for their current situation.

Tags: real estate investors, transactional lender, Proof of Funds, transactional funding lender
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