Valentine’s Day 2019 is almost here. Take the opportunity to show some extra love to your real estate lead lists, and set your wholesaling business up for more success at the same time.

Get in those Mailboxes

This is a great time to be landing your information in mailboxes and email inboxes. Smart use of packaging and subject lines could greatly increase the number of people on your prospective sellers lists that actually open and read your message at this time of year.

People love to know someone is thinking about them, and many won’t be receiving Valentine’s Day cards this year. Stand out and show some love. They’ll remember you when they are really ready to sell their homes.

Educate Them

Whether it is through the mail, email or on your real estate blog and social media, invest in educating your prospects on the importance of selling their homes now, and the pain of failing to do so. With tax refund season here, many will find this their best opportunity to get out of a distressed housing situation and move on. Others just need a reality check on how far their home price could fall if they drag their feet on selling this season.

Realtor Matchmaking

One of he biggest reasons that those who should be motivated sellers don’t sell is that they simply don’t know where they will go next. Match them up with a motivated Realtor who can get them out and find them a new rental or more affordable home to buy.

Give Them Earning Opportunities if They Insist on Staying

Some people will refuse to get off the sinking ship, no matter how close they get to a foreclosure auction date. For those on your list that are adamant about staying, show them how to make more money to pay for their homes and Valentine’s Day gifts by bringing you leads on other properties and sellers.

Host an Event

Valentine’s Day brings so many themed event and party opportunities. Host a community event of your own. Invite all of your prospective sellers. Use the time to build relationships and trust, so when they do decide to sell their loyalty is with you.

 

Who will be the biggest winners in the real estate market this year?

These five factors will be among the most significant differentiators between the winners and leaders versus the rest in real estate for this year and beyond…

Follow Up

This is still the number one make or break factor for real estate professionals. Fortunately, it is still probably the easiest way to get the edge. The vast majority of Realtors, wholesalers, builders and sellers seem to be doing terrible at this. In fact, their follow up is mostly non-existent. Most deals are lost and leads burned because of a simple lack of follow up. Just one more email, text or call could have converted those leads. Those buyers and sellers are all going to buy or sell. Just normally with the professional who keeps following up after the others drop the ball. Make sure that’s you.

Staying Healthy

You don’t need six pack abs or the best squat game in town to win in real estate, but if you’re out sick you aren’t making money. If your supply line dries up, your users are going to the next wholesaler in line to fill their deal flow needs. It will be far harder and more expensive to win them back. So, take time to stay healthy and avoid burnout.

Anticipating & Overcoming Objections in Advance

Most sellers, agents and buyers won’t take the time to layout all their real objections. They’ll just pawn off the easiest excuse on you. The most successful are those who invest the time to foresee and overcome objections in advance. It’s basic sales 101. What questions or concerns could hold sellers and buyers back from taking your offers? What can you do to champion that ahead of time?

Marketing

Fear will cause some to pull back on their marketing this year. That will be another nail in their coffins. Others are doubling up on their content marketing. Make sure you are consistent, are looking for voids to fill, and are focusing on quality marketing that makes you stand out.  That may be online, in mailboxes, through networking, or sheer hustle and asking for the business. Most important as the market changes will be the ability to create product and demand.

Eye on the Big and Long Game

 

The focus should probably no longer be on what you earn this year. That should be the result of the seeds you planted last year. Most of what you are doing this year should be setting up your success and revenue for the next 2+ years. This mindset helps avoid dangerous short term thinking while ensuring long term survival and growing profit margins.

 

There’s a lot more foreclosure and REO activity out there today than many realize. Many cities still have thousands of foreclosure properties, and auctions have spiked by over 100% in some places. The deals are out there if you know where to look and how to approach those holding these assets.

Special Servicers

Special servicers handle the bulk of default debt and REOs today. If you are a licensed Realtor, you can approach these servicers and try to get REO listings. Or, if you have experience and a good presentation you may be able to buy REOs and non-performing notes in bulk.

Some of the top special servicers include:

1. Key Commercial Mortgage

2. BNY Asset Solutions, LLC

3. Midland Loan Services, Inc. (now part of PNC)

4. Bank of America

5. Prudential Asset Resources

6. Centerline Capital Group.

7. GEMSA Loan Services, L.P.

8. Hatfield Philips International Ltd.

9. Situs Servicing, Inc.

10. TriMont Real Estate Advisors

11. LNR Property Corp.

12. Ocwen Financial Corporation

13. Wells Fargo Commercial Mortgage Services

 

Pros:

• Low amount of effort if you have a good presentation on hand

• Can be done online

 

Cons:

• Often a wait and hope strategy

• Need to be able to buy in the tens of millions of dollars range

• No direct communication with real decision makers

 

REO Agent Directories

Realtors can be a great source of REOs, especially from the bigger banks and servicers. Check out the following directories where they hangout. If you are a Realtor you can get listed on them as well.

• REO Network

• Fannie Mae

• HUD Homestore

• REO Industry Directory

• Instant Home Link

• HAR.com

 

Pros:

• Easy to find contacts

• Can be done at scale quickly

Cons:

• Can be time consuming to personally comb through endless directories

• Can be a waiting game

Go Direct to Banks for REOs

Local community banks, credit unions and private lenders have REOs too. This inventory is typically less competitive and often overlooked. Go straight to these asset holders to purchase their REO.

Pros:

• Less competition

• Easier to reach decision makers

• More loyal sources of repeat business

Cons:

• Each will have fewer assets on hand than the big banks

• Probably don’t have organized processes for liquidating REOs

• Need to be good at relationship building

Pre-Foreclosures

Getting to these properties as pre-foreclosures before the auction and becoming REOs can mean they have more equity, less accrued fees on top, and sellers can be more flexible to work with. Find them online, by acquiring lists, and through attraction marketing.

Pros:

• Potential savings on Realtor fees, back interest and fees

• More flexibility in negotiations

• Ability to really help individual homeowners

 

Cons:

• Typically means working just one property at a time

• Sellers may not want to sell, even if they need to

• Lots of competition in most markets

 

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.

Despite many preconceived misconceptions real estate wholesalers and agents can greatly complement each other. Here are four reasons Realtors shouldn’t miss the opportunity to thank a wholesaler this week…

There is a lot to give thanks for in the weeks ahead. Holiday sales, some extra time off, the freedom to get into the real estate business and change your own future, and your family’s future. It’s also the perfect time to experience some gratitude for all those out there that are striving to do good real estate business, in spite of all the temptations and pressures to take short cuts.

Realtors and wholesalers often (incorrectly) view each other as the arch-enemy. It may sometimes seem that you are competing with each other. But in reality you can help each other, a lot. If you learn to work together. This is true, even when you are marketing to the same people.

Wholesalers are Great Clients

Real estate wholesalers can be far better clients than the average home buyer. Providing you can serve up good deals; wholesalers are no nonsense buyers that act with lightning speed. You aren’t going to have to drive them around for six months while they constantly turn down properties because of the carpet color in the third bedroom. That makes them far higher ROI clients too.

The Dig Up the Hard Deals for You

Property wholesalers are experts at digging up those really hard to land deals. They know how to reach out of area owners, get complicated deals structured, and they know how to negotiate. Even if a wholesaler buys one of these properties the odds are that it will ultimately end up as a Realtor listing. This may be immediately, or after it is rehabbed. That’s more deal flow.

Make Properties Easier to Sell

When a property goes from wholesaler to rehabber, or title and lien quirks are worked out by wholesalers; that creates a better looking, easier to sell listing for real estate agents. Again; more ROI on your time. This also improves neighborhoods and means you can sell more other properties for more money, and more commission!

Great Referral Sources

Real estate wholesalers are great sources of referrals. The bottom line is that not everyone is a candidate for selling their property to a wholesaler. Sometimes the numbers just won’t work, or the owner is fine waiting in out on the MLS for a few months. Wholesalers that have already spent money and time on generating these leads can certainly be great sources for these deals. If you are working together and not against each other.

Summary

So give a wholesaler a hug this week. Thank them for their service to the local community. Reach out and surprise them with a “thanks” and lunch to see how you can work together for your mutual benefit.

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.