Flash / Transactional Funding for 30-120 days

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!

Edited: 06/26/2010 at 09:53AM by Moe M.

Nick J.

SFR Investor · Scottsdale, Arizona

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Icon_minipost Sep 30 '09, 11:33 AM

Originally posted by Moe M.

But this is huge for BoA 30 day restriction and only cost 3.5%.

That is huge! I only know of 1 funding source that will do the BofA 30day funding but it's very very expensive at 10% plus an admin fee(which is common). I would be very very very interested at the 3.5% depending on the cost of the course to get that pricing. I would have to figure out cost average to make that determination.

If I could find a BofA 30 day funder at 5-6% without having to 'buy' into anything I would be all over it.

Edited: 06/26/2010 at 09:53AM

Antoine Simmons

Private Money Lender · Dalton, Georgia

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Icon_minipost Sep 30 '09, 11:52 AM

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

Edited: 06/26/2010 at 09:53AM

Justin S.

Rehabber · Chandler, Arizona

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Icon_minipost Sep 30 '09, 11:57 AM

Antoine-

Because hardmoney requires a 20-30% of the investors cash to be in the deal. Flash funding is fully funded at 100%. If you have 20-30% to put into it, then its definitely a possibility, a lot of people just don't have it.

Edited: 06/26/2010 at 09:53AM

Justin S., Wheelhouse Properties
E-Mail: wheelhouseproperties@gmail.com
Telephone: 4806780446
Website: http://www.wheelhouseproperties.com
Realtor, Re-modeler, Cash Buyer

Moe M.

Real Estate Investor · Murrieta, California

47 posts
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Icon_minipost Sep 30 '09, 12:08 PM

Originally posted by Justin S.

Antoine-

Because hardmoney requires a 20-30% of the investors cash to be in the deal. Flash funding is fully funded at 100%. If you have 20-30% to put into it, then its definitely a possibility, a lot of people just don't have it.

Yup Justin nailed it on the head. It ain't like the good ol days.

Moe

Edited: 06/26/2010 at 09:53AM

Antoine Simmons

Private Money Lender · Dalton, Georgia

37 posts
294 Influence
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Icon_minipost Sep 30 '09, 12:09 PM

Justin,
I know of an underwriter that is providing 100% of the project cost including acquisition if you are able to buy right. The cost is 5 points or 5% of the purchase price if you prefer; which can be put into the loan. I/O for 30 days if dealing with BoA; There are some other stips but I think it can be done. One of the stips is that the property must need some rehab done to it.

I have to let everyone know that I do affiliate with the underwriter that does this, and I'm not saying you should use them but I'm sure they can come up with another solution. I will make sure of it tomorrow.

Edited: 06/26/2010 at 09:53AM

Moe M.

Real Estate Investor · Murrieta, California

47 posts
448 Influence
3 Awards

Icon_minipost Sep 30 '09, 12:13 PM

Originally posted by Antoine Simmons

Justin,
I know of an underwriter that is providing 100% of the project cost including acquisition if you are able to buy right. The cost is 5 points or 5% of the purchase price if you prefer; which can be put into the loan. I/O for 30 days if dealing with BoA; There are some other stips but I think it can be done. One of the stips is that the property must need some rehab done to it.

I have to let everyone know that I do affiliate with the underwriter that does this, and I'm not saying you should use them but I'm sure they can come up with another solution. I will make sure of it tomorrow.

Definitely interested in finding out more and I'm sure other members of this forum would be also. Can you give more info. This could translate into a lot of new business for your underwriter because those points are reasonable for 30 days. Of course the stips are crucial to know.

Thanks.
Moe

Moe

Edited: 06/26/2010 at 09:53AM

Antoine Simmons

Private Money Lender · Dalton, Georgia

37 posts
294 Influence
3 Awards

Icon_minipost Sep 30 '09, 12:26 PM

Moe:
I don't want you to misunderstand what I'm saying; my apologies for not communicating it correctly. There are I/O payments for the terms. The 5 points are on the front end. The interest is 16% which for 30 days translates into roughly 1.33% every 30 days. So you must add that on top of the 5%:

So if you want to look at it; It should cost you no more than around 6.33% for 30 days, but like I said let me make sure because I think they would like to answer the 30 day sesoning problem most investors are having.

Edited: 06/26/2010 at 09:53AM

Moe M.

Real Estate Investor · Murrieta, California

47 posts
448 Influence
3 Awards

Icon_minipost Sep 30 '09, 12:30 PM

Originally posted by Antoine Simmons

Moe:
I don't want you to misunderstand what I'm saying; my apologies for not communicating it correctly. There are I/O payments for the terms. The 5 points are on the front end. The interest is 16% which for 30 days translates into roughly 1.33% every 30 days. So you must add that on top of the 5%:

So if you want to look at it; It should cost you no more than around 6.33% for 30 days, but like I said let me make sure because I think they would like to answer the 30 day sesoning problem most investors are having.

Thanks for the clarifcation. Yes you did include that in your post and it still is decent (though 5% is better :). At the very least it gives investors looking for transactional funding more options. I have a feeling that 30+ day trans funding will start emerging because the need is there. Hopefully you can let us know what you find out.

Moe

Edited: 06/26/2010 at 09:53AM

Nick J.

SFR Investor · Scottsdale, Arizona

2800 posts
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Icon_minipost Sep 30 '09, 12:41 PM

Antoine, get some clarification. The only way I would be at all interested is paying a flat % fee and of course some 'admin' fee which I don't mind paying. The flat fee must NOT be more than a total of 6% of the A-B purchase price plus a reasonable admin fee.

I don't want to get involved with some difficult structured loan, just a simple process.

And I am personally only interested in getting more info on 30day BofA funding where the B-C transaction will already be in place with at least a 5k EMD by end buyer. I have multiple 24,48 and 72 transactional lenders and one that I just started using that I'll probably use exclusively unless you get me 1% on 24,48 and 72hr funding then I 'might' jump ship but I know the grass isn't always greener on the other side so that is a very weak 'might' as I'm really only interested in getting cheaper 30 day BofA funding.

I forgot to mention that I will not be doing any rehab on the properties, I hardly ever even see the properties that I flip but it is all secured regardless.

So if you're lender buddy has anything that can come close to that, myself and my large circle of influence will certainly award him/her/them business on only 30day BofA loans.

Edited: 06/26/2010 at 09:53AM by Nick J.

Antoine Simmons

Private Money Lender · Dalton, Georgia

37 posts
294 Influence
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Icon_minipost Sep 30 '09, 12:45 PM

Ok Nick J:

Will do.

Thanks,
Antoine

Edited: 06/26/2010 at 09:53AM

Ryan Moore

· Bellingham, Washington

31 posts
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Icon_minipost Oct 07 '09, 04:52 PM

Hey guys, if you have B of A deals that you need transactional funding for call me. I have been getting the 30 days removed. They turned us down a two so far but have removed on over a dozen files. Those high fee will kill your spread.

Edited: 06/26/2010 at 09:58AM

Rich Weese

Real Estate Investor · sioux falls, South Dakota

4284 posts
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Icon_minipost Oct 07 '09, 07:32 PM

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

Edited: 06/26/2010 at 09:58AM

James Ward

Real Estate Investor · Ocala, Florida

748 posts
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Icon_minipost Oct 07 '09, 07:38 PM

Antoine,

I am also interested! Please get me the info!

Thanks,

Edited: 06/26/2010 at 09:58AM

H Mann

Real Estate Investor · Bay Area, California

211 posts
1575 Influence
2 Awards

Icon_minipost Oct 09 '09, 07:59 AM

Originally posted by Rich Weese

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)
[b] 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

10k in interest is not 10%.

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%.

Edited: 06/26/2010 at 10:00AM

Rich Weese

Real Estate Investor · sioux falls, South Dakota

4284 posts
43775 Influence
15 Awards

Icon_minipost Oct 09 '09, 08:22 AM

H Mann- You are correct and I stand corrected. I quickly took it against the 100K value, instead of the loan. It would only be 5K and the borrower does even better than I showed. Rich.

Edited: 06/26/2010 at 10:00AM

Rich Weese

Real Estate Investor · sioux falls, South Dakota

4284 posts
43775 Influence
15 Awards

Icon_minipost Oct 09 '09, 08:25 AM

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

Edited: 06/26/2010 at 10:00AM

Ryan Moore

· Bellingham, Washington

31 posts
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1 Award

Icon_minipost Oct 12 '09, 11:22 AM

i can get the 30 day requirment removed and fund your deals for 2 points.

Edited: 06/26/2010 at 10:02AM

Will Barnard

Rehabber · Santa Clarita, California

7238 posts
54461 Influence
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Icon_minipost Oct 12 '09, 11:53 AM

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

Edited: 06/26/2010 at 10:02AM

Will Barnard, Barnard Enterprises, Inc.
E-Mail: info@barnardenterprises.com
Website: http://www.barnardenterprises.com
info@barnardenterprises.com

Ryan Moore

· Bellingham, Washington

31 posts
-10 Influence
1 Award

Icon_minipost Oct 12 '09, 03:22 PM

i can get the 30 day requirment removed and fund your deals for 2 points.

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