Trying to get a good deal in today's market can be frustrating. It might mean making a hundred offers before you get the one that makes sense. And even if you have cash and will close "as is," you still might lose out. Or you might end up with the property and find out later you paid too much or got stuck with a lemon.
So how are experienced investors getting better deals with less effort?
We have found that many of the best deals never even make it to the open market. Much of it happens behind the scenes, word of mouth. Hedge funds and companies with deep pockets pick up the best bank-owned property through bulk purchases, or "tapes." The banks love this because they can move more property at once, even if it means slashing prices. Since these properties never even make it to the open market, it's tough for individual investors to compete with the big players.
So at Real Wealth Network, we decided if we can't beat 'em, we'll join 'em!
We have partnered with those big-time cash buyers who have direct relationships with the banks. We have made an agreement with them that if they give our investors a deal, they can move property more quickly. For example, our Dallas buyers get first pick of properties from their local bank rep. Because they buy in bulk with cash, they get huge discounts that they pass on to our investors.
We also pool funds to pick up almost-compete subdivisions or multi-family properties. Again, this is tough for the individual investor because the price tags are much higher, but the deals are sweeter. For example, we just wrote down a $12.9M FDIC loan to $3M on 27 almost-finished water-front condos in Portland. Investors will make over 40% IRR.
This is truly the greatest wealth transfer in history. Opportunities abound, and together we can make it happen. You don't have to go it alone. Learn from the experts so you can avoid making the same mistakes they made when starting out. That's why Real Wealth Network was created - to bring new and experienced investors together to share information and help each other succeed.
What deals are you working on? How can we help you?
Tags: Dallas, Development, Distressed Properties, Hard Money Loans, REOs, Short Sales
