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There A Still Millions Of Vacant Properties Out There

by blogger1
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on Thursday, 19 May 2022
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For the past couple of years we’ve been told that housing prices are so high, and bidding wars are so competitive because there is an incredible shortage of inventory. Yet, the data shows that there are actually millions of vacant properties across the US. Could these not only be the answer to retaining some affordable housing, but also fueling your deals as a real estate investor?


America Has 16M Empty Homes

According to a new report from Florida Trend in May 2022, the US has 16M vacant homes. Most of those are in Florida. Which has 1.7M, despite being one of the hottest states for buying activity.


This doesn’t count all of the vacant land and building lots out there which can also be used for housing. Nor, the enormous amount of no longer needed office buildings, and other commercial properties which are ripe for being converted to housing.


Affordable Housing

One of the big observations with all of these vacant houses, is that they far outnumber the amount of homeless in the country.


Official counts only put the number of homeless in the whole country at 500,000. Each could be given almost four houses each in Florida. Still, leaving over 14M empty homes across the nation.


More can be carved out either by government, private investors, or combinations of both in partnerships to retain a pool of truly affordable housing. That’s certainly better than spending over $500K a unit to develop new housing for the homeless as some governments are doing.


Of course, plenty more of this pool of properties can be sold wholesale to rehabbers and landlords to operate at market rates.


Finding The Deals

The discrepancy between the retail market and all of these vacant properties, is that they are not being publicly advertised for sale online. That doesn’t mean that they can’t be bought.


The key to unlocking all of this deal flow and profits is direct marketing to true off market sellers.


This can be done by mail, email, cold calling, and search engine marketing.


This is a great service to provide. You can help these owners liquidate all of these properties which are costing them money to hold every month, and turn them into cash.


On the flip side, you are providing much needed inventory to retail, rehabber, and landlord buyers. Like mining for diamonds or gold and bringing it to market.

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Is Reverse Real Estate Wholesaling Really A Smarter Strategy?

by blogger1
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on Thursday, 22 September 2016
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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.

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