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Who Are The Top Buyers Of Wholesale Homes Now?

by blogger1
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on Wednesday, 07 March 2018
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Who can you be flipping your wholesale homes to now?

If you want to wholesale more properties, wholesale faster, and make more profit, it helps to know who the most active buyers are in the market. There is more than one type of buyer for wholesale houses. Bulk up your list with them.

Rehabbers

Rehabbers and fix and flip investors are still one of the top buyers of wholesale homes. They need this inventory to fuel their businesses and incomes. Having a consistent source of wholesale deals allows them to stay focused on what they do best (fixing). This is becoming even more important as house flippers look for new areas to work in, with more opportunities.

Rental Property Investors

Rental property investors also need to keep their pipelines full of new acquisitions. They are needing to dig deeper and deeper to find house deals where numbers work. Some may want to make renovations and improvements, others won’t.

Other Wholesalers

While it’s important not to get tied up in long chains, other wholesalers with bigger buyer lists, and who can handle more volume may be some of your best contacts. These may be other pure wholesalers, investors looking to owner finance and create new mortgage loan notes from these properties, and even funds.

Retail Home Buyers

Regular home buyers are increasingly looking for wholesale house deals too. Too many other properties are being overpriced, and inexperienced and unrealistic agents and sellers are overpricing and have little in the way of negotiation skills. Today’s buyers want to feel as if they are getting a good deal. Some may take more work than other wholesalers, but they may pay more too.

Non-Profits

Nonprofits and not for profits are also looking for affordable housing supply to supply their users with, or to house workers and those they help. They may even buy your deal in bulk.

Home Builders

Small builders are often finding it more profitable to acquire existing properties and fully renovating them instead of building from the ground up. It can be greener too. Even larger builders often need to piece together larger parcels to put new communities and projects on. It’s much easier for them to work with wholesalers than regular homeowners.

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5 Factors To Watch When Buying Wholesale Properties

by blogger1
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on Monday, 29 January 2018
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Looking for and finding low priced wholesale properties is one thing. Ensuring you have a viable deal, that comes with plenty of appeal for end buyers, and which they can actually buy may require a little more attention.

Make sure you are watching these factors…

Deed Types

There are several types of deed used to transfer real estate. Wholesalers need to know what type of deed they can get and provide. Savvy end buyers will, and should be wary of only being offered quit claim deeds. These really offer no protection or security. End buyers want to be confident in their investment, ability to get title insurance and resell in the future.

Unpermitted Property Changes

Many low priced distressed properties (and even some very expensive ones) are so much cheaper because they have illegal changes. That can be additions, garage conversions, subdividing units, and so on. Those can lumber new buyers with big fines, prevent them from re-selling or refinancing, and from obtaining a mortgage loan to buy your property. They can still be deals, just know the challenges. Make sure your buyers do to.

Realistic & Appealing Spreads

Offering a property with a $68,000 ARV for $48,000 doesn’t really leave much of a spread for the next investor. Not when you factor in 2 sides of closing costs and repairs. It may be a nice discount for a retail buyer, if they have the cash and want to spend it in that neighborhood, but make sure you know your buyers and what they want.

Changing Mortgage Rules

It is important to anticipate changing mortgage lending rules and programs. If they tighten, they could cut plans and deals short. Fortunately, we are are expected to be in a period of loosening mortgage criteria. Most analysts don’t expect Dodd-Frank to disappear yet, but it could be stripped down.

Who Pays the Costs

One of the quirks in the market since 2008 is more distressed property sellers trying to get buyers to pay the burden of past due property taxes, liens, and fines. Sometimes even there closing costs. Those costs can often exceed the purchase price too. Know who pays what.

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