The Wealth Investors Network Update 2023

See what's happening with TWI and how you capitalize on an Amazing 2023!

 

 
Watch Video Here to Get the Full Update. . .

Marketing Partners

Specialize in Lead Generation & Marketing.  Wholesale deals instantly to the TWI Network.

Project Management Partners

Specialize in Rehabbing and Managing Crews for the The Wealth Investors Network.

Joint Venture Partners

Specialize in Funding Deals with The Wealth Investors Network.

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Hello TWI Partners!

 
We trust everybody had a great Holiday Season. I know we enjoyed some much needed family time.
 
Below is our 2023 market update. As you will see we are very excited about the future of this organization!
 
The Market
We see 2023 as the new 2007. We are at the very beginning of a correction due to interest rates. From 2019 thru November 2022 it was very difficult to find good deals at scale. But it was easy to sell them. In order to do so we had to buy bigger rehabs and mobile homes on land. There were no motivated sellers in the market due to COVID restrictions for several years. There was no reason to make a deal if you weren't being forced to make a decision on your house.
 
Starting in December of 2022, the motivated lead volume has skyrocketed, meaning there are a lot more small rehab deals available which will reduce the risk associated with drawn out rehabs. The result should be smaller hold periods. Smaller hold times mean less risk in the actual rehab. Rehab money in the system as the market slows will also lean out competition through the year making it easier to negotiate better prices. Todd and I experienced the market conditions from the 2000 crash as well as the 2009 foreclosure crisis and plan to use the same strategies in the current market.   
 
To accomplish this our priority will be to stay ahead of the price drops on the retail side by being very conservative with ARVs and to continue to focus on the major cities in the best growth states.  
 
How This Affects Rehabbing
Going forward we will be concentrating our purchases on rehabs under $40,000. The absolute key to thrive in this type of market is to get the rehab done in 45-60 days max. In order to accomplish this you will have to run a very tight ship. They can not drag out. If they do, we will slow our purchasing in your area which will have an affect on your income.  Rehab quality will become a focus again as competition to sell will come down to price and amenities on each house. From 2020-2022 if a house was priced reasonably we could get away with older bathrooms, kitchens etc. That will not be the case moving forward. Don't overspend but don't skimp on the areas that make a difference come resale. It is worth highlighting again.
 
The faster you get them done the more we will buy in your area. Become experts at managing your crews and the money will follow.
 

2023 Buying Criteria 

  • Small Rehabs Up to $10k (Wholetail): 80% of ARV - rehab cost
  • Medium Rehabs $20 - 30k: 75% of ARV - rehab cost
  • Large Rehabs $40k: 70% of ARV - rehab costs
  • NO Rehabs Above $40k. No complete rehabs, tear downs or severe fire damage. 
  • Single Family Houses Only 
  • Block Only in Florida 
  • Minimum 1100 sq ft
  • Minimum 3/2 
  • 1970 and newer
  • Purchase price under $250k Cash
  • Creative Deals Up to $350k
  • NO Condos or Townhomes 
  • Mobile Homes on land
  • NO parks or HOAs
  • 1990 or newer
  • NO singlewides
  • NO metal siding 
  • 3/2 1500 square feet minimum 
  • Must be able to resale with land attached 

Current Markets

  • Jacksonville FL
  • Orlando 
  • Tampa 
  • Ft Myers/Pt Charlotte 
  • Ocala 
  • Lake City
  • Melbourne/Vero/Titusville 
  • Ft Pierce/Pt St Lucie/Stuart
  • SE Florida West Palm Area 
  • Oklahoma City
  • Tulsa
  • Houston
  • Atlanta Metro Area
  • Dallas Ft Worth
  • Future Markets (St Louis, Phoenix, Las Vegas)
Capital 
We believe this is the opportune time to scale in the markets where we have great project management personnel in place. To execute this strategy we have made arrangements to double our credit line with our Hedge Fund partners in the coming next few months. We are also making plans to double that amount again over the next 6 months assuming the market continues to slow. Meaning,
 
TWI now has the capital in place to significantly scale our business with you. If you become efficient at managing 10-15 rehabs at a time, we have the capital to do it. It is our opinion that every project manager can handle at least 3-4 active rehabs at once. More efficient managers can manage 6-8 at once assuming you have the crew in place to perform that amount of work. This translates into the 10-15 flips at one time under your management.  If you are also out actively looking to find deals with us, the additional wholesale fee earned should put you well into the six figure income category. 
 
Funding
When it comes to our funding partnerships, we've sent out our 2022 tax info. We are thrilled to achieve those types of returns for our flip funding partners and are excited about 2023. For those of you who have expressed interest in getting into the Rental industry now that the market has changed we encourage you to analyze your financial situation asap. In 2023 we will definitely start getting quality 'subject to' purchase opportunities that create tremendous rental properties. However, you have to be ready to pull the trigger within days. These deals won't last more than 24 hours. If that is in your future financial plan, get an exact idea of the total amount of cash you can invest and let us know as soon as possible. Every deal is different but as an example, $100k might get you 3-4 properties with our purchase methods.  
 
Marketing / Wholesaling
The seller's motivation to make a deal is back! When combined with the increase in rates, we believe this is the opportune time to ramp your marketing. Since mid December, our marketing efforts are producing almost 1 good deal every business day. If you are not currently doing any marketing at the moment and want to get back into wholesaling, reach out to Todd. We may be able to plug you into our current system. 
 
ARVs
It is critical that you do not look at comps over 30 days old. Comps from 60-90 days ago are no longer relevant. If there are not enough comps to justify the ARV then you have to look at active listings. We do it on our end for every single lead we evaluate. This is how you will stay ahead of the dropping retail prices. Active prices are the new ARV and we need to be below that price point.
 
Conclusion
We are extremely excited about the current real estate environment. As real estate investors we only get opportunities like this a few times over our careers. For expert companies that have years of experience like TWI, there will be opportunities in the future building rental portfolios, flipping rentals to large landlord buyers and many other scenarios where big money wants to enter the market.
 
Focus on your specific craft or duty. If you will do that, we can assure you that you are in the right place to significantly improve your financial futures. We have been waiting for years for this market cycle to come to fruition. We plan to capitalize on it!
 

The TWI Team

Todd, Jason, Sam, Patty, John, Barry 
 
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