There is great news for real estate wholesalers who are looking for more inventory. Zillow’s collapse also means that it is shedding thousands of properties for less than they paid for them.

Zillow’s Flawed Products Finally Catches Up With It

There are certainly many real estate investors who are cheering the recent announcement that Zillow is imploding. They have plagued the market for years with a horribly broken data tool.

It turns out that same tool has now finally been their own downfall. After going all in on house flipping, they have announced that their inability to calculate house prices has effectively put them out of business. Effectively wiping out $30B in market value for stock investors, and leading to layoffs of at least 25% of their team.

Without house buying, a Zestimate and data business, and having continued to lose hundreds of millions a year, despite billions in sales leaves little of a company left, if anything.

Zillow’s Implosion Vs. House Flipping

Where Zillow failed many others are thriving and are experiencing their best years in real estate ever.

Obviously, understanding your property values, to make smart offers and re-market them well is absolutely pivotal to success. Something Zillow has finally admitted it simply cannot understand.

Aside from understanding property values, you also have to have a business model that works, and to add more value than others. Yet, Zillow Offers neither offered a great process for sellers, or offered competitive rates. In fact, they tried charging sellers far more in commissions than full priced Realtors.

Fortunately, now regular wholesalers not only get to enjoy less competition in the marketplace, but also the opportunity to scoop up thousands of properties the failed internet company needs to sell at a discount.

Lots More Inventory Coming Down The Pipe

Zillow will probably prove to be just the first in this domino chain. Other large iBuyers and their backers will probably take note of this, and feel better about admitting defeat or will be scared off as well.

That could mean tens of thousands if not far more in discounted deals coming. While investors with capital are going to be looking for new ways to buy into this space.

Now is the time to develop relationships and position yourself to get these deals.

When you sign them, we’re here to fund your deals for you...

Despite all the talk about distress, mortgages in forbearance programs, unemployment, and businesses being locked down, the wealthy have not only survived unscathed, but have been enjoying great gains.

How are they doing it? How can individual investors and small real estate businesses make this their best year ever too?

Banking Billions

Data from Business Insider and The Guardian shows that America’s billionaires have only been enjoying more gains and wealth creation through the COVID pandemic and other chaos happening in 2020.

Within just 23 days of the first lock downs they added just short of an additional $300B to their net worth. By the summer they doubled that again to over $600B in new gains, adding almost $5B a day in profits.

Finding A Sweet Spot In Real Estate

One of the most notable trends we’ve seen since the beginning of the coronavirus pandemic is a growth in house prices.

Some data does show that there are a significant number of households that have been lagging in paying their mortgages and rent. Yet, House prices keep on heading up. Partially in response to a major shift in where people want to live and the types of housing that are needed now. As well as an enormous amount of capital fleeing other scary and more volatile and risky investments.

We’ve continued to see the likes of Jeff Bezos adding to their big real estate portfolios.

House Flipping

More and more celebrities and business icons seem to be increasingly relying on real estate to protect and build their wealth.

Given the recent disruption in the retail industry you can bet that Tommy Hilfiger has been honing his skills at flipping houses over the past few years. He is now reportedly on his eighth house flip. His recently listed house in Greenwich, CT is asking $47.5M. Over $16M than he paid for it.

In the Hamptons, one luxury home flipper has just relisted a 6.7 acre compound for $72M. That’s a potential $27M gross profit on a property purchased in the middle of the pandemic in April 2020.

Scaling Your Own Wealth

You don’t already have to be a billionaire or a fashion celebrity to make this kind of money, or to make this the best year for your finances yet.

• Set really BIG goals

• Try joint ventures with new partners

• Use transactional funding for financial leverage

• Look to undervalued areas where the most people are moving

 

Ready to hit the ground running and crush your 2020 real estate investing goals?

Here are six types of motivated sellers out there in the market ready for you to make an offer on their homes.

1. Those Who Spent Too Much During The Holidays

There is a lot of pressure to overspend during the end of year holiday season. There are two types of people out there in January. Those who are flush and didn’t put any gifts on credit cards and stayed on top of their bills. Then those who splurged, racked up debt, tanked their credit scores, and are struggling to pay their bills. There is a good chance many in the last group won’t catch up and will lose their homes unless they sell fast.

2. Those Who Are Now Unemployed

Lots of places hire to keep up with the busy holiday shopping season. Then they let everyone go. That’s the last thing most can afford after splurging on gifts, food and going out for the last month. Now new employment laws threaten to dump tens of millions of people into the unemployment pool too. If California’s new employment laws effectively banning freelancers and independent contractors spreads, we could be looking at 60% plus unemployment rates in some areas of the US within the next 12 months. With no job or income, most are only a week away from falling behind on their housing payments.

3. Those Wanting To Start A New Life In 2020

Millions of people have promised themselves a new life this year. They are putting their foot down, resolving to change their lifestyles and step out in new directions. Many are ready to make big moves, cash out old homes and hit the road to travel.

4. Failed Landlords & House Flippers

Sadly, many investors have rushed in without educating themselves or they have relied only on speculation instead of buying assets at the right prices. Now they are out of credit, out of cash, and they are stuck with properties that keep drilling deeper money pits for their fleeting finances. Step up and help them get out.

5. Those Whose Homes Are Depreciating

As the correction spreads, homeowners who look up their house values online and see they’ve lost $6k, $60k ot $600k in equity in the past few months are going to get really motivated. Those values could plunge much further. Many will be smart to cash out. Yet, at the right price real estate wholesalers can still get in, buy low and flip for a profit. Even in a declining market.

6. Those With Big 2020 REI Goals

Connect with those with big goals for wholesaling or flipping houses in 2020, and who want to move deals fast and get a good headstart to the year. Help them crush their goals by moving their inventory for them.

 

The 4th of July is on us, and it can be one of the most pivotal moments of the year for real estate investors. How will you get the most out of it?

Are You Fully Flexing Your Freedom?

Some people may really feel their freedoms are being cramped. Yet, millions of people flock to this country every year for a chance at opportunity and to enjoy our freedoms. Billions would come if they could. To fail to take advantage of the freedom we have is a terrible waste.

We have an amazing opportunity just to be able to buy and invest in real estate. If you’re willing to hustle, you can build a million dollar business in almost no time at all, and be enjoying a 1% income and plenty of time freedom.

You don’t need a lot of money, time, a college education or credit to start wholesaling houses. Best Transaction Funding will even give you 100% of the funds you need to finance your wholesale deals. The only thing crazier than that is to not take advantage of it.

We’ve crossed the halfway point in the year. If you haven’t reached your goals yet, make this the moment you decide to get on track and do something about it.

Go Free Some People

Contemplating all the sacrifice made for these freedoms, and the birth of this country in fighting off high taxes and debt, it’s ironic how many people feel trapped in their homes or who are facing foreclosure due to high property taxes. You have the freedom to get out there and help them this weekend. You have the ability to set them free from that. It’s a gift. Flex it.

Give Others a Chance at the American Dream

Owning a home is still a core part of the American Dream, you can help make that happen, and make their dreams and aspirations a reality. It’s an incredible gift to be able to be a part of that. You can do this as a house flipper or wholesaler. Get out there and serve up some homes.

Celebrate Your Freedom!

Whether you are just waking up to the opportunities and resources available to you, or you’ve already blown your own mind with what you can achieve through real estate investing, celebrate it.

Take time out this Independence Day to really celebrate all of this.

Network & Build Relationships

If you are still struggling to get some traction toward these goals or are trying to get to the next level, the 4th of July weekend is a fantastic time to network and build relationships to make it happen.

Get out and attend local events or host your own. Break out the BBQ and light it up. You’re free to grill meatless burgers or real ones, it’s up to you.

Connect with others you can learn from as well as those who you can help.

What’s trending in the real estate financing space now?

Here’s what’s changing in the market as we roll through the second quarter, and into the second half of 2017…

Rising Loan Volumes

The Mortgage Bankers Association, analysts, and individual lenders are expecting loan volumes to rise this year. Commercial real estate loans are predicted to hit new highs in 2017 and 2018. That’s following RealtyTrac’s annual house flipping report which shows far more flippers are now using financing. Buy and hold real estate is still popular too, yet many rental property investors have most of their capital tied up in equity and will need to use leverage to expand their portfolios this year.

Higher LTV Financing

Lenders are expanding loan programs with new higher LTV options. In addition to 100% transactional funding, VA and USDA loans, private lenders and rehab lenders are also moving closer to offering 100% financing for fixing and flipping houses and small multifamily properties.

Declining Credit Score Requirements

Various efforts are being made to reduce credit scores used in underwriting. How much relief this provides to investors will depend on how front line mortgage originators adopt them. Many are still being far more stringent than the secondary market demands.

True Stated Income Loans

Alternative documentation loans have been on the fringes of the market for a while. Now we are finally seeing more lenders offer stated income loans for investors that don’t require tax returns, or even bank statements.

Equity Sharing Loans

Lenders are bullish on the market continuing to grow. More are wanting a piece of that rising equity, in addition to interest and origination fees.

JVs

Savvy investors and lenders are increasingly partnering up. This can be a great strategy for expanding, while minimizing risk, increasing diversification, and gaining access to more lucrative investments.

 

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.

How can real estate investors still legally wholesale houses in 2016?

There is a lot of confusion and misinformation out there. There are many detractors who don’t want competition from wholesalers. They want those deals for themselves, or they really don’t understand the law. Or some have seen wholesaling done the wrong way or have read outdated materials and think that is the way all wholesaling is done. States have enacted various laws and regulations to protect the market, guard their streams of income, and keep consumers safe. But that doesn’t mean that true wholesaling is illegal.

Always check with an investor friendly local title company or real estate attorney on the finer points of your house flipping strategy. But definitely consider one of these three tactics which are legal in most markets…

Assign Your Contract

Assigning your purchase contract to another buyer is a streamlined way to make money on the house deals you can negotiate. There are many perks to this strategy including speed, avoiding closing costs which can eat profit, and more. In many areas this is not only legal, but expected. Check your local real estate contracts. Many Realtor and attorney contracts include a clause for assignment of the contract as standard.

Buy and Then Market for Sale

One of the big issues with wholesaling is marketing properties. There are many regulations on not marketing what you don’t own, unless you have a real estate license. However, you can absolutely publicly market and sell properties you do own. So if you’ve got a great deal use your cash or hard money loans and buy them. Then market them for sale and find an end buyer. Whether you fix and flip, or just straight wholesale from there is up to you. Once you own it you can unleash all the marketing you want from signs to Google ads, to listing it on the MLS with an agent.

Wet Back to Back Closings

Some types of ‘flips’ and wholesale structures have certainly been illegal in some jurisdictions for a while. This might include publicly marketing what you don’t own, as well as simultaneous dry closings where you aren’t funding your initial transaction first. However, by leveraging transactional funding and wet closing on the first, and then closing on your resale, this is completely legal, especially if you have only promoted the opportunity privately to your lists. That exit can occur any time after your first closing. Typically done in 1-3 days.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of ransactional 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.