Flash / Transactional Funding for 30-120 days 30 posts by 15 users

Posted: 09/30/2009 at 08:36PM

So I was on the webinar last night from the short sale kid because my email was getting bombarded with how they figured a way around the whole title seasoning issues -- even for FHA. I half-way listened through the first 45 minutes of them selling themselves and finally they got to the meat of it. Basically they have set up a relationship with a funding source named Aegis Capital Holdings who has started a new company specifically for flash funding called Aegis Real Estate Partners -- I did some research and didn't find anything on their flash funding. They are offering transactional funding for up to 120 days and even longer on a case-by-case basis. Supposedly this is exclusively for Nathan's students if they enroll in the FixAFlip training program, which is really expensive.

The fee structure is very reasonable in my opinion and of course it gets more expensive the longer it takes to close the B-C side. It's roughly 2% for 24 hour funding. (I won't give the complete breakdown), 16-30 days is 3.5%, 45-60 days is 7.5% and 96-120 days is 18.5%. They JV with you on the deal and I mean this is tremendous. Obviously if possible I would rather use the 24 hour funding to keep the cost low. But this is huge for BoA 30 day restriction and only cost 3.5%. And of course if we can start selling to FHA that is huge (though it may not be cost effective). I'm more interested in the 30 day funding.

So has anyone ever heard of Aegis. I know that Will Bernard is offering 30 day funding (and no this isn't a plug), but just hoping more funders offer longer than 24 hour funding.

Later.
Moe

P.S. I am in no way trying to endorse anyone -- in fact I've never bought anything from short sale kid. Sad that I have to put this disclaimer!

Posted: 09/30/2009 at 10:52PM

Hey why not just get approved for a Hard Money Line of Credit that will allow you to hold the property for 30 days?

Posted: 09/30/2009 at 11:08PM

Moe

Posted: 09/30/2009 at 11:13PM

Thanks.
Moe

Moe

Posted: 09/30/2009 at 11:30PM

Moe

Posted: 09/30/2009 at 11:45PM

Ok Nick J:

Will do.

Thanks,
Antoine

Posted: 10/08/2009 at 06:32AM

Ryan- it all depends on how much margin you have in the deals. I've done loans at 10% per month and I have many properties I bought that had enuff spread that the 10% oR higher rate was still welcome. Example:
Put REO under contract at 50% LTV . Lttle or no rehab needed. Sell at a quick discount of 80% LTV. 30%. None of your own cash in deal.
100K value
Buy at 50% (50K)
Sell at 80% (80K)
Pay 10% (10K) int for the 30 days
Original bird dogger grosses 20K
Bird dogger has no money in the deal and makes 20K in 30 days and has no risk
Obviously 10% is EXORBITANT and 5-6% would be better. Do this same deal every couple months or more gives a great return. Actually, with ZERO invested, the return is infininite. Just food for thought. Rich

Posted: 10/09/2009 at 06:59PM

If you borrowed 50k, and are paying 10% interest, than you would be paying 5k.

If you are paying 10k, then you're paying 20%.

Posted: 10/09/2009 at 07:25PM

To original poster. Yes, it does occur. I posted a thread mentioning that we closed one today. Borrower and lending group all BP members. Rich

Posted: 10/12/2009 at 10:53PM

What does an investor do Ryan if you are unsuccessful in removing the restriction?