What types of property deals are ripe for real estate wholesaling right now?

The market is always changing. What worked 5 years ago may not work as well today. Here are 5 niches to explore, test out and find bigger profits in now…

Small Multifamily & Mixed Use Properties

Overall yields on single family home rentals have been getting squeezed over the last year. To get the same spreads, many income property investors are having to look at multifamily apartments. Mixed use is still a hot item too. Funds and mom and pop investors alike need deal flow. Help them get it by considering flipping these types of properties.

Vacation Rentals

It’s true that the Airbnb Effect has dramatically driven up asset prices in many areas over the past few years. Yet, if you look, you can still find sweet spots where property prices are low and the potential yields from short term rentals can be massive. That makes it easy to flip these types of properties to rehabbers and buy and hold investors.

Empty Nesters

We’re in an interesting moment, coming off of a down period, but with a strong new economy. That means there could be fewer good inherited property deals or foreclosures. Yet, there are all types of reasons for sellers to be motivated. Age can be a big one. With age homes can end up being too big to manage, or just don’t fit health and mobility needs of seniors. Help these property owners who are more focused on convenience than price, and create more win-wins.

Construction REOs

Construction REOs have been a secret pocket of the distressed property industry. The average homeowner or new investor may not want to take on a home or apartment building that wasn’t 100% completed. That means these deals can have less competition and more bargaining room. Today, we need more new construction than ever. Take a look. You may find houses that just need a little love on interior design and applying for the Certificate of Occupancy. You don’t even have to finish the work. Wholesale them to rehabbers or small builders who can complete it.

Foreclosures

There are still foreclosures and foreclosure auctions. Check the data and you can find fresh spikes in this activity in different parts of the country. Be flexible and willing to go where the deals are at and you can still find great profits.

Looking for better spreads on real estate deals in great property markets?

This niche offers one of the biggest opportunities for real estate investors, the chance to find fatter spreads, and often with less competition, even in hot CA, FL, and NY markets…

Construction REOs

Construction REOs have continued to be one of the biggest pools of distressed properties in the USA. In fact; the opportunity has dwarfed most of the other types of REOs, put together.

These properties had construction and rehab loans taken out on them, which then defaulted. These properties range from half-finished single family homes to massive luxury branded condo conversion projects, to older homes on lots small home builders planned to redevelop, to small multifamily properties with permit issues. And often these properties are now in the optimal zone for big profits from wholesaling houses.

Why Flip These Properties?

The size of the opportunity is huge. Literally Trump sized. Billions of dollars’ worth of properties are in these pools. That’s great for real estate wholesalers looking to scale their business and incomes over the next few years.

The discounts are just as big. This can be a gold mine and life saver for those investors that are in hot markets and have been finding sourcing profitable deals tough. This is because most newbie real estate investors are afraid of taking them on, or simply are not aware of them as an option. It can seem daunting to finish a job that requires working with permits, or doing some structural improvements. But it doesn’t have to be. Those that do their due diligence upfront, and get quotes from contracts might find it easier to turn many of these eye sores into brand new homes that can achieve premium prices. And the best news is that as a wholesaler you really don’t have to get into any of that hard work. Just match them to the investors that are eager for them.

This is also one of the best ways for real estate investors to bring true value to their markets. When these lagging properties are recycled it helps bring up the whole neighborhood. It increases appeal, values, and safety.

How to Take them Down

Perhaps the real reason more property investors don’t take on these units is financing. Most regular bank mortgage loans aren’t a fit. But there are rehab loans end investors can use if they don’t have the cash. For real estate wholesalers there is private money, hard money loans, and transactional funding to leverage and flip with ease, for big digits.

 

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.