BiggerPockets

Hi
I was wondering if anyone can give me a little more detail maybe even a scenario on how to use a company like Coastal funding (transactional funding).
Is this mainly just for wholesaling?
Has anyone used coastal funding for any of their deals before? Can you use transactional funding on a fsbo?
And is it worth it? fsbo or reo

sorry for so many questions just interested in this topic

Thanks in advance

You can use transactional funding for short sales, REO's FSBO, etc. It is a great way to flip deals without using any of your own money or credit.

You must have the contract between you and the selling party (A to B transaction) as well as your end buyer in place (the B to C transaction).

Note: Make sure to place your offers in the name of your entity and not your own name, get decent or above average earnest money deposits from your end buyers, and have back-up buyers in place. Doing these items will help your transactions flow smoothly and keep you profitable. ALso know that Bank of America and Wells Fargo have addendums in short sales that stipulate you can not re-sell the property inside of 30 days which kills the transactional funding from Coastal and all other transactional funders EXCEPT me. I can be that source as well if you wish.

Will B

Unless you can get Bof A or Wells to remove the condition in the addendum, there is no way around the 30 day seasoning and therefore, investors will need someone like me to fund those deals.
Here is how it would work: You have a Bof A short sale and can not get the 30 day removed, you have the A to B contract locked up and you already have an end buyer (B to C contract in place), I see all the docs including the short sale approval letter, the title company info(I can provide if you don't have one) and the end buyers funding approval (if not all cash). I thne supply all the cash (including the clsoing costs) so you have no out of pocket money and clos eyour A to B transaction. Then in 30 days, the B to C can begin to clsoe and it funds and closes within a max of 2 more days for a total of 32 days max. The c funds are used to pay your profit margin less my fees.

Does that answer your question?

Best regards,

Will B

I read some of the material regarding this funding that Will is offering. The 30-day funding has a different fee structure than the 1 to 3 day funding.

But it is cool for those who need it.

Will,

We are in the process of negotiating on a few BofA loans. We have yet to receive their conditions, but we are anticipating the 30 day seasoning. My question is are the lender's 30 day seasoning requirements similar to FHA's 90 day, as in you cannot open escrow to a property until the seasoning has passed? Or can you open escrow and close on the 31-32 day?

Thanks in advance for any information,

Dan Walters

I have noticed two trends in transactional funding. The 30 day seasoning is coming up more often from the lender side, but also more title companies are refusing to close back-to-back deals even if both sides are funded! [LINK AND SOLICITATION REMOVED]