SJREIA Financial Literacy Subgroup - 10am to Noon - Marlton, NJ
We're meeting earlier in the month now! Every 2nd Saturday.
SJREIA Members attend FREE -- Visitors pay $20
❗ NOTE: Registering here in BiggerPockets doesn't actually save you a seat; to do that, click the link below 👇 ❗
Scaling Your Wholesale Business Using Novations
Learn how Novations can unlock new opportunities for wholesalers, making it easier to increase profits, expand reach, and scale efficiently
Briana Heino, President/CEO - HEI Property Investments, LLC
www.brianabuyshomes.com Office:(908) 503-5511 | Cell:(609) 592-3600
1. Access to Retail Buyers for Higher Profits
Novations allow wholesalers to sell properties to retail buyers, often achieving closer-to-market prices rather than the deep discounts required by cash buyers. This expands the potential buyer pool and increases profits on each deal.
2. Lowering Dependence on Cash Buyers
Unlike traditional wholesaling, novations aren’t restricted to cash buyers or investors. This
reduces the reliance on a limited pool of buyers and helps smooth out deal flow, especially in competitive or fluctuating markets.
3. Increased Deal Volume Through Multiple Exit Strategies
Novations provide an additional exit strategy for wholesalers by allowing them to assign contracts to retail buyers, increasing flexibility and enabling them to do more deals
simultaneously.
4. Better Solutions for Sellers
Novations give sellers the ability to receive more competitive offers, especially in situations where they don’t need a quick cash sale. This positions the wholesaler as a more attractive option for homeowners who want to sell but are seeking market value.
5. Reducing Capital Needs for Business Growth
Because novations allow wholesalers to operate without taking full ownership of properties, they don’t need to invest large amounts of capital into renovations or closing costs. This creates a more capital-efficient model that supports scaling.
6. Leveraging Conventional Financing
By structuring deals so that retail buyers can use conventional financing (e.g., FHA, VA, or traditional loans), wholesalers can increase the number of qualified buyers, leading to faster sales and more deal closures.
7. Minimizing Risk with Flexible Contract Options
Novation agreements replace the original purchase agreement between the wholesaler and the seller with a new agreement between the seller and the retail buyer. This reduces the wholesaler’s liability while ensuring the deal moves forward, allowing more rapid scaling with reduced risk.
8. Expanding into New Markets
Because novation allows access to retail buyers who don’t need to rely on cash, wholesalers can enter and scale into new markets where traditional investors may not be as active, broadening their geographic reach.
9. Building Stronger Relationships with Agents and Brokers
Novations often involve retail buyers, who usually work through real estate agents. Wholesalers can develop relationships with agents and brokers to source more leads and create a collaborative network for scaling their business.
10. Scaling Without the Need for Full Renovations
In a novation deal, wholesalers can market properties in their as-is condition and still sell them to retail buyers. This eliminates the need for costly rehab projects, shortening the sales cycle and enabling faster scaling through more transactions.
BIO - I am a real estate investor with a primary focus of wholesaling real estate. I own 2 companies, 1 for acquisitions and 1 for dispositions. Since I began wholesaling, my companies have closed 100+ deals including, creative finance, novations, double closings & more!
Briana Heino, President/CEO - HEI Property Investments, LLC | www.brianabuyshomes.com | Office:(908) 503-5511 | Cell:(609) 592-3600
MEETING DETAILS:
⏰ Oct. 12, 2024 (10am to noon)
đź“Ś Location: Surety Title Company, 11 Eves Drive, Suite 150, Marlton, NJ 08053
Cost: SJREIA Members attend FREE. Visitors pay $20
RSVP to let us know you're coming!
Subgroup Leader - Ron Odom