The real estate landscape is changing fast. Beyond the mechanics of wholesaling houses for high profits investors need to know how emerging trends and some of the finer quirks of the industry can impact profitability.

Throwing out offers in mass with confidence is relatively easy for property wholesalers with the best transactional funding lined up to fund all of their deals. On the flip side, while there are still some properties rotting on the market, many areas are seeing homes being snapped up in minutes, often before they can even be put online. However, there are some emerging quirks of the market which it is wise for serious wholesalers to be tuned into.

Some of these have the potential to stick wholesalers with properties they can’t turn over as quickly as they thought. Others can help investors stay away from snags and take the lead in the boom ahead…

New Construction Isn’t Perfect

As some find publicly marketed inventory tightening or more competitive, more investors are considering the lure of new construction properties. As Delaware custom home builder Turnstone Builders recently blew wide open in an ultra-transparent blog post – new construction can be far from perfect. It can be riddled with contaminated land, faulty structures, and more. Don’t fall for looks or the promise of new always being better without a warranty and some due diligence.

It’s Cheap for a Reason

The incredibly low prices real estate has traded for since the crisis has helped thousands of new investors get into the market. With properties going for under $10k a pop, they became accessible for everyone, while those with good credit can put houses on their cards as easy as buying lunch. However, as with most things in life; cheaper isn’t always better. There’s a reason properties have sold for $100, $5,000, and $10,000 in areas like Detroit. Some also might question the math of purchasing properties and then putting double the purchase price into them in rehab money. Deals mean undervalued properties, or at least fair priced homes that may be worth more to others; it has nothing to do with the dollar price tag.

Responsible Products

Unfortunately the real estate industry seems to foster the temptation to throw ethics to the wind in exchange for more deal flow and more cash. It often starts slow, with one toe into the grey area, and then bam! In the real estate industry this has often turned into rationalizing selling bad product. This might be poisoned land, homes with mold, old meth labs, or even homes with Chinese drywall. You wouldn’t appreciate someone selling you a dangerous car that you plan to drive your kids around in, or faulty toys that can be lethal. So why sell on homes that can be even more dangerous? If in doubt throw the file out. If you don’t, at least know that investors and home buyers are better educated than ever, and sooner or later it will comeback, even if you resell these homes.

Property Rights Wars

Property rights is the new frontier of real estate. The highest paid lawyers in the country are moving into this niche to help affluent property owners and the public preserve views and space. Eminent domain activity is also heating up. This is perhaps most noticeable in South Florida, along the planned route for the Keystone XL pipeline, and California’s new rail line. For some investors property in the path of eminent domain can turn out to be incredibly profitable. In other cases it can mean big losses. It all depends when you buy it, and for how much.

Forward Thinking Buyers

Home buyers, including end investors are thinking further forward than they used too. They may not verbalize these considerations, but there are factors they are looking at, and which unless addressed could become barriers to resale. On the other hand those wholesalers than pay attention and get ahead of the objections could find a new sweet spot. The most intelligent and serious buyers today are taking into consideration factors like rising sea levels, length of functional use, and long term performance. If your end buyers are long term hold income property investors or high net worth home buyers you might want to keep this in mind when searching out new areas and making offers.

Privacy

Mark Zuckerberg’s real estate woes in California have highlighted the desire for privacy many luxury buyers are seeking today. They don’t just want large lots and homes, they want a nice cushion to keep the paparazzi away too. How can you help serve up more of what they want than the competition can?

Sustainability

Although industry organizations like the CCIM Institute have proclaimed that green building has now become mainstream, and buyers want it, the online real estate landscape still appears to be very thin when it comes to searching for and finding green homes and lodging. How can you incorporate this into your strategy?

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.

In spite of the value they bring real estate wholesalers are often among the most hated players in the business. So what can you do not to be one of those wholesalers?

Property wholesalers might sometimes rival attorneys and Realtors for being the most disliked and shunned members of the real estate community. Yes, it’s ironic. Few hate on Wal-Mart, Costco, or Amazon in the same way. Few others in the industry offer as necessary or as valuable a service. Yet, whether it is because they make money too easily, or too many amateur wholesalers have thrown one too many bad ‘deals’ around, good wholesalers have their work cut out for them.

So how can those serious about wholesaling houses stand out as real professionals and do more deals?

Offer Great Deals

If you offer great deals, they will sell fast, and you’ll have plenty of repeat business and referrals. Each individual might have their own opinion of what a good deal is, but if you know your buyers, you know what they find attractive or not.

Know Your Stuff

Nothings irks qualified and serious end buyers more than being swamped by amateur wholesalers that haven’t bothered to invest in building their knowledge. So invest in your education and training, and learn the business enough to be able to fake it until you make it.

Provide Reliable Deal Details

If real estate wholesalers concentrate on providing accurate information they’ll quickly win credibility. Those that keep dropping the ball or are seen as trying to be slick won’t be given many second chances. One of the best marketing moves you might make is to actually over-estimate repair costs and under estimate ARV. Then buyers will buy from you again and again, and they’ll trust you enough to do it quickly.

Inbound vs. Outbound Marketing

Unfortunately there is so little trust out there due to bad marketers and desperate wholesaling newbies that even if you’ve got a great deal you can waste a lot of time, energy, and trust by spamming. By all means build highly targeted lists and channels for updating qualified buyers on your deals, but before that let them find you. If you’ve got great deals, and a good handle on SEO, and can do a little networking you should be fine.

Be Different

Despite how much people love to bash them, real estate investing coaches often do a great job at turning new people onto wholesaling houses. We can bicker about their seminar fees and depth of content, but if they weren’t out there teaching there would be fewer millionaires, more struggling homeowners, and fewer deals being fed to those that need them. However, if there is a bone to pick with some of these programs that churn out novice wholesalers (and we all have to start somewhere), it is giving them all the same cookie cutter website, content, and templates. It’s no wonder real end buyers can’t tell the difference. So consider the value of looking and sounding different to the rest. If there is one thing worth disrupting in real estate wholesaling it is presentation and branding.

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.

Where can you find the investment property financing you need to fund your real estate deals fast?

While consumer mortgage credit can still be tough to find for regular homeowners there are an increasing number of options for investment property financing. Here’s a quick break down of where real estate investors can find the funding they need for their deals…

Transactional Funding for Wholesaling Properties

For those real estate investors needing to close fast, and who are serious about wholesaling properties with the least risk, for the maximum returns, Transactional Funding is absolutely the answer. Best Transaction Funding offers rapid 100% financing that checks all the boxes for wholesalers.

Hard Money Loans

While transactional funding may be the most appealing option for savvy real estate investors today there are scenarios in which slightly longer holds may be justified. Perhaps there are appetizing must-have deals you just can’t pass up on but don’t have an end buyer for yet. Maybe there are substantial profits to be had from taking few months to fix and flip, or bring a property to performing before reselling or refinancing. In this case hard money loans can provide easy qualifying and fast funding. Yes, we do hard money too, just ask.

Bulk Portfolio Financing

Commercial mortgage lenders have opened up the doors for for bulk income property portfolios acquisitions and refinancing. Some provide non-recourse loans, foreign investors financing and even stated income options. Some of these new lenders include B2R Finance, FirstKey Lending, and Rental Home Financing.

Government Backed Loans

Investors acquiring new personal residences might find FHA, VA, and USDA government backed home loans the best way to go for low and no down payment mortgage loans. They can also be great resources for investors to refer their retail buyer clients to. Local governments also offer a broad array of assistance programs, including well into six figures helping buyers with down payments in high cost areas.

Real Estate Crowdfunding

Crowdfunding can be great for filling in the gaps and launching new developments. However, as the space grows increasingly crowded real estate crowdfunders need to be aware that successful fundraising through this medium can require extensive strategy, marketing, time, and budget.

Wholesaling houses has many obvious advantages. It also offers some unique and very powerful benefits many real estate investors at least seriously underestimate, if not completely overlook.

So what are these advantages of wholesaling compared to rentals or fixing and flipping houses?

1. Eliminating Disputes with Neighbors

When rehabbing homes to flip or hold as rentals neighbors can generate significant stress and become obstacles. Regardless of how well investors try to select tenants when holding properties, crazy and ignorant neighbors can cause all types of bizarre disputes which can lead to losses of income, property damage and more. Even in high end neighborhoods landlords can face the likes of Justin Bieber moving in next door and causing tens of thousands of dollars in damage by hurling objects at your investment property. This can all be avoided with wholesaling.

2. Compounding Gains Faster

Even the best rental homes, high performance mortgage notes, and rehabbing can mean sluggish returns compared to wholesaling. Not only can property wholesalers put down less money, which dramatically boosts cash on cash returns, but with lump sum gains being able to be reinvested and flipped multiple times per month on an exponentially growing basis that annual and lifetime returns on wholesaling can seriously put other investment strategies to shame.

3. Eliminating Holding Risks

Even house flippers fixing up and reselling properties in a period of weeks or months face major exposure to risk. From hurricanes and earthquakes to value dips due to neighboring foreclosures every hour properties are held means weathering a barrage of threats. Insurance is one of the necessary evils, but talk to a handful of residents in areas hard hit by hurricane Sandy or in storm prone South Florida and you’ll no doubt hear plenty of nightmare stories about how insurance companies fail to deliver.

4. Easy Access to 100% Financing

One of the really beautiful benefits of wholesaling houses as a real estate is easy and streamlined access to working capital and 100% financing. Via Best Transaction Funding wholesalers can finance their whole deals without asset verification, having great credit scores, or even having another job.

List building is critical to profits from wholesaling real estate. What are you doing to boost your list in 2014?

The importance of list building for wholesalers can’t be ignored or underestimated. Having a strong buyers list means being able to flip houses fast, take advantage of more opportunities, being able to leverage 100% financing from Best Transaction Funding, and adding profits to every deal thanks to speed and great relationships, not to mention maximizing marketing ROI.

Your buyers list may be your best ally and asset in the months ahead. It can prevent your business volume from being impacted by constant Google SEO changes and the cyclical nature of other marketing channels.

So how are you going to bulk up your list?

1. Offer Perks
Offer cool perks in exchange for personal data and referrals to your list.

2. Better Website Themes
Your theme could be list blocking you. Maybe it’s time for a new upgrade to a sweet looking HTML5 theme or better WordPress template which makes your opt-in form a magnet.

3. Better Blogging
Get serious about blogging. Post better blogs and more of them.

4. Social
Don’t just build your list via your website. Build your list directly on social networks too. Think iFrames on Facebook and get Instagram if you haven’t yet.

5. Burn Your Business Cards
Are your business cards a lame excuse for not insisting on getting contact information on the spot? If so ditch them and trade email addresses, phone numbers and social likes with everyone.

6. Landing Pages
Launch a new landing page and promote it. Consider contests, offering exclusive information and access to secret off-market properties.

7. Drive in New Traffic
Drive in traffic from new sources. Who haven’t you been reaching out to or getting in front of? What about using Adwords, Facebook, Slideshare, Amazon, other blogs and online magazines?

The business world is changing, the way individuals are looking at their finances is changing and the way consumers are shopping for a home is changing fast. Only those real estate investors on the forefront of these changes will come out in the lead…

The New Onshore Outsourcing Era

Outsourcing is definitely here to stay but not in the same way. Some outsourcing offshore for low level data entry tasks may continue but with demands for higher quality content and streamlined management more remote workers are being sourced within the U.S. This even includes foreign companies from even the likes of China sourcing work to American staff.

Look forward a couple of years and ventures like Blueseed and pirate nations just off the coast offering tax and regulation free zones with all the benefits of the U.S. will increasingly become the norm.

Hot Property

What are the hottest types of property to be watching and flipping over the next year?

If the economy flourishes after November elections expect those experiencing the new rich feeling for the first time to swoop in on McMansions while property prices and rates are still low.

Others decidedly being more frugal, especially the plethora of new single parent households will be seeking small pads in more pedestrian friendly areas. Other families will likely continue their path toward moving out of cities to find more acreage and larger lots. With more soldiers returning home from overseas, investors using transactional funding for their acquisitions will find improving their knowledge of USDA and VA home loans which both offer 100% financing too will help them win the most buyers.

Where are All the Leads At?

Real estate investors looking to take their businesses to the next level will need to embrace and get better at 3 crucial areas for attracting leads over the next 6-18 months…

1. Mobile marketing
2. Developing high quality content
3. Amassing original videos and images