Yes, there is still room in the market for you as a real estate wholesaler. The market needs you.

You may have seen lots of recent success stories about others wholesaling millions of dollars of real estate, and even hundreds of deals each year. You may be seeing an incredible rise in demand for property in your area, and sharply rising prices too.

While you may be attracted to the income this sector offers, you may also be wondering if it is still a good time to get in. The answer is yes!

Not only is there room for you, but great wholesalers are still very much needed.

Market Conditions

We are currently in the ideal market conditions for real estate wholesaling. In fact, these are probably the best conditions we’ve ever seen. There is both a large amount of motivated home sellers, and motivated home buyers.

According to one recent report from the New York Post at least 1 in 10 households are in distress with their mortgages.

At the same time home buyer activity and resale prices are hitting new highs.

To complete this trifecta, transactional funding lenders are actively looking to put their money to work with real estate wholesalers.

Finally, while there are many people trying to wholesale real estate, just like any other profession or industry, most of them are not doing it well. The market really needs honest investors, who want to give everyone a fair deal.

They Need You

Homeowners need you. They need honest real estate investors who will treat them fairly, and won’t just tie up their homes in contract for months, leaving them to lose their homes to foreclosure when they can’t find an end buyer.

Home buyers need you too. They need a reliable wholesale seller who can give them good deals, on homes that will really work for their families.

Investors need you too. Rehabbers and rental property investors desperately need inventory. They need wholesalers they can trust to give them good deals and be transparent about the properties they have. Wholesalers are the lifeblood of their businesses.

The economy needs you. While many love to hate on real estate investors and wholesalers, it was this group which virtually single handedly pulled the country out of the 2008 Great Recession. It is this group which has greatly contributed to the economic rebound since COVID lockdowns started, and will be leading the charge to pull us through the next recession.

This is your chance to provide an incredibly valuable service and be very well paid for it.

 

This year’s historic events have driven more interest in real estate investing and need to switch investment strategies than we’ve seen in at least 12 years. Where can you find the money to keep going or get started?

If anything real estate has only become stronger and has headed up faster as a result of recent events. More people are on the move than ever. Everyone from individuals to investment funds are looking for the safety and perks of real estate.

However, even those who were doing very well in real estate pre-COVID are switching up their strategies. Everyone wants to protect their capital, and needs more income. Many flippers and landlords are switching to real estate wholesaling. It is also the perfect strategy for those who are just starting out and may have lost jobs.

Of course, common wisdom says “it takes money to make money.” It doesn’t necessarily have to be yours though. So, where do you get it from?

IRAs & 401ks

New CARES Act rules and other changes due to COVID-19 are allowing individuals to tap even more of their retirement savings to move it to safety in other investments, or borrow against it. Those with 401k plans can now reportedly borrow up to 100% of their account balance, or $100k. This money can be used to invest in real estate. You may also have a couple more weeks to contribute to these plans and reduce your taxes, while improving your income. If this money is currently in the stock market, it is still exposed to some serious potential volatility.

If the Dow Jones just drops back to 2015-2016 levels, it could lose another 7,000 to 10,000 points. Or close to half of your portfolio value.

Partners

Partnering up is a common way to get started or grow in real estate. A few people can pool their money together and split the rewards. Or course, right now, many people are trying to preserve cash and may be leaner on savings than they have been in a while.

Traditional Mortgages

Traditional mortgages and even hard money loans could be a way to fund a move into real estate. Unfortunately, major banks have tightened up their criteria. Some have stopped home equity lending. It is noticeably more difficult to borrow from these sources than at the beginning of 2020. Though interest rates are extremely attractive if you can borrow.

Transactional Funding

In contrast, transactional funding is still plentiful. The best transactional funding lenders are still offering 100% financing, and credit and appraisals or lost jobs aren’t a problem. It’s a super easy way to fund your deals, while minimizing risk, and maximizing upside potential and returns.

Get in touch today to find out more about getting your approval, proof of funds letters and VODs to get more of your house offers accepted.

Plus check out our referral program that pays you when you share this great resource with others.

 

Is reverse wholesaling a better way to flip properties?

Flipping houses has become incredibly popular thanks to reality TV shows, celebrity home flippers, and a rising housing market. Many investors have found property wholesaling a great way to take advantage of this with less risk, and more volume potential. Now some are pursuing a niche in reverse wholesaling. So how does that work? Could it be a smarter way to profit from the current market?

Reverse Wholesaling has been gaining attention thanks to real estate educators like Kent Clothier at REWW. The concept is simple. Instead of contracting to buy properties or acquiring them, and then going looking for end buyers, reverse wholesaling flips the process around. It means finding the end buyers, then filling their orders with wholesale properties. It’s essentially preselling and taking pre-orders.

Does it make sense? Of course. Instead of investing all the time, effort, and money into inventory which you aren’t sure will sell, or how long it will take to sell, it means the confidence, speed, and enhanced profitability of knowing your deals are already sold before you get them. This decreases risk, and makes sure you are operating at maximum efficiency.

To make this strategy work investors need to target buyers first. The more qualified buyers you have waiting for multiple deals the more you can get out there and do. Of course you will ultimately need the deals, but there are plenty out there if you know where to look. The latest data shows a substantial double digit surge in REOs this year, and there are almost 1.4M vacant homes which could be ripe for flipping.

As a reverse wholesaler your volume and income potential may only be capped by your access to capital. That’s what transactional funding lenders are for. Best Transaction Funding specializes in this type of lending, and can provide up to 100% financing with no appraisal requirements.

 

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.