Feb 23

Wholesalers are making the shift to High End Wholesaling

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1941d1a071133d147b0c2f304add18c3e4eO5196417As many of you have experienced the supply of investment properties has dwindled in the past few years. With so many foreclosures and short sales on the market being sold at deeply discounted prices the inventory of properties with enough equity to flip has dwindled. This short supply of flip inventory has real estate investors setting their sites on higher end properties.

House flipping nationwide is down 13 percent from a year ago, but high-end flipping (homes priced above $750,000) is up 34 percent, according to a new report from RealtyTrac, an online real estate company. Flips on homes priced between $1 million and $2 million increased 42 percent year over year, while flips on homes priced between $2 million and $5 million increased 350 percent year over year.

With many of these high end homes now in the foreclosure pipeline now is the time to buy as the prices are at a record low for high end real estate. As a result high end flipping is growing in popularity.

High-end and luxury house flipping is on the rise nationwide. According to RealtyTrac, the number of flipped homes valued at $1 million or more has risen nearly 40 percent across the country since 2011. RealtyTrac defines a home that has been both purchased and sold within six months as a flip.

The Investors who have the source of funds to purchase these properties are finding that their return is greater in using their funds to purchase a high end flip with a larger equity spread as opposed to purchasing several low end flips with a decreasing lower equity spread.

“It’s a bigger upfront risk and on the back end you have usually fewer buyers, but the payoff can also be much bigger,” said Daren Blomquist of RealtyTrac. “We’re showing the average gross profit on one of these high-end flips is about $240,000, compared to about a $55,000 average profit on the lower end.”

The key for any Wholesaler is acquiring the supply (properties) and demand ( buyers) for these high end property deals. Once a Wholesaler has mastered this the opportunity for much larger profit is endless. The wholesaling process is the same with more zeros at the end of each deal. Just like any wholesale market it all starts with building your buyers list and acquiring a source for these deals. Once this is mastered the rest of the wholesale system is the same as wholesaling lower end properties.

 

 

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Aug 31

How to Get Estate Sale Leads Through Your Local Funeral Home.

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imageConsidering all of the property leads that I get I must say Estate Sale Properties by far have been the most profitable flips.  These properties are generally mortgage free since 9 times out of ten they were owned by an elderly couple who purchased the property many years ago and have long since paid off the mortgage. The beneficiaries, once past the grieving stage, are eager to get their inheritance. Both of these scenarios are prime for a great deal since the ingredient for a great deal is: 1. Negotiating room (equity) and 2. A motivated seller.

 

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Feb 28

How to negotiate an REO Property.

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imageAccording to RealtyTrac there were 210,941 new foreclosures that hit the market between December 2011 and January 2012 which brings the current total of national REO properties to 1,344,490. This number does not take into consideration the number of properties that are not listed for sale. The properties that are sitting vacant that the banks own that the FDIC has forbidden the banks to list for sale. The shadow inventory properties that are sitting in the bank’s toxic asset pool not listed with an Agent. The FDIC regulates the amount of properties that the banks are allowed to put up for sale in fear of crashing the market with too many REO properties. Therefore these properties sit vacant in communities around the country.

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Sep 26

Stay in Constant Contact with your buyers

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With a list of 7,000 buyers nation wide I had to come up with a way to effectively separate my buyers by state. A way to send them wholesale property leads that I had available in their market and avoid sending the property leads in areas they have no interest in. Granted I could put all of my buyers on one general email list and when I get a property lead in a particular state just send it to my whole list. But that property lead would be of no value to buyers in other areas. Why would a buyer in Florida be interested in leads for real estate in Texas? They wouldn’t, and you could lose buyers by sending then real estate leads in states they are not actively buying in.

I decided that I wanted to be more effective with my email marketing. I wanted to present property leads that were set apart from the many property leads that my buyers received every day. I wanted to organize my buyers and be much more effective when it came to property lead presentation. I wanted to sell deals and in order to do that I had to have my email shout BUY ME to my buyers! That is when I found constant contact

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Jan 06

The Profits and Pitfalls of being a Wholesaler in today’s real estate market

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imageNo matter where you are in America being a Wholesaler in today’s real estate market is challenging. Foreclosures are at an all time high and property values are decreasing daily as a result. Creating enough equity in a property that is underwater ( the home owner owes more than the home is worth) is difficult unless you short sale the property and then wholesale to an end buyer. Unfortunately short sales are extremely time consuming and not something that an average wholesaler has the experience or time to take on. Therefore many of these homes, though they are vacant and the home owner is motivated, are not profitable for today’s wholesaler.

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Aug 27

The magic of POSTLETS & VFLYER to market your wholesale deal

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imageI am a big fan of postlets.com when it comes to marketing real estate properties that I am wholesaling. This resource is an awesome tool to have in your wholesale toolbox. When I get a real estate property under contract the first thing I do is create a POSTLET to help me market the property. With POSTLETS I am able to create a one page add about my property with pictures, information and a map and the best part is that it is a FREE resource.

 

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Aug 27

Stay in CONTROL of your Wholesale Deal!

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A  good real estate wholesaler stays in control of their real estate deal at all times. Go to any real estate investor websites and they will be teaching the same need for control of a deal. From negotiations to sale it is very important that you stay in the driver’s seat. What do I mean by this? Let’s say that you have a real estate wholesale deal that you have negotiated and are ready to go meet with the seller and get the contracts signed.  You made an appointment to meet with them in 2 days to get everything signed. Your anxious to get a sale on it so you send the information out to your wholesale buyers list real quick. You go to your appointment and find out that the seller had already signed a contract with someone an hour earlier because they offered them $1,000 more than you did. Then you come to find out the person they just signed the contract with was on your wholesale buyers list. The seller had NO commitment with you, You blasted the real estate info to your buyers list before you had control or had the property under contract… BIG NO NO! Not everyone is ethical and YES there are other wholesalers who will kick you to the curb to get a deal done! Trust me I have come across a few and learned this the hard way.

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