Exit stategy for Transactional Funding for more than 30 days

I am confuse over the whole transactional funding. Lets look this scenario:
If i use transactional funding to purchase a property but after 30 days i cant wholesale, what are the other options?
also can i buy a rehab home with trans funding?

Thanks

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

Jesse R

Rehabber · El Paso, Texas

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Icon_minipost Oct 20 '09, 12:22 PM

Transactional funding is usually used for same day closes. If you have buyer lined up, I can set you up with someone who can help you out. They can also go as far as 32 days for those homes that require seasoning.
Otherwise, if you're looking to rehab, the hard money route is the way to go.

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

Dee Xixi

Real Estate Investor · waltham, Massachusetts

183 posts
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Icon_minipost Oct 20 '09, 01:50 PM

if after 32 days I cant resell the home, so are the scenario. does the lender charge higher fees then or i have to foreclose on the property

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

Justin S.

Rehabber · Chandler, Arizona

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Icon_minipost Oct 20 '09, 01:56 PM

if after 32 days I cant resell the home, so are the scenario. does the lender charge higher fees then or i have to foreclose on the propert

Dee, transactional funding requires you have a buyer in place before they fund. If your buyer walks on you then the funding will be very very expensive. I would only do a 30 transactional funding if you have VERY large non-refundable deposit from the end buyer.

You can do a hard money loan, but you will need to come out of pocket for 20-30% of the sale price and hard money lenders will only loan to you if the property was picked up at a large discount.

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

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

Will Barnard

Rehabber · Santa Clarita, California

7238 posts
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Icon_minipost Oct 20 '09, 03:34 PM

I believe Justin and Jesse are referring to my transactional funding services as I am the one who can provide the 32 day option in addition to the traditional same day variety.

Justin is correct in that you MUST have the end buyer contract in place along with teh original A to B contract BEFORE funds can be loaned. It is also a requirement that the end buyer have a minimum of 3.5% or $5,000 (whichever is greater) as a non-refundable (hard) earnest money deposit.

If by some chance your buyer was to walk anytime during the 32 day loan period, you would have to line up a a new buyer before the 32 days were up. If not, you stand to lose the deal (this is something we want to avoid as we do not want to own properties all over the country we did not intend on buying)

Late fees would apply and the process of transfering ownership to us would take place in that event.

It sounds as if you may be doing deals that are more suited for a hard money lender and we do not provide that service.

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

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

Stephani Davis

Real Estate Investor · Tampa, Florida

190 posts
1193 Influence
2 Awards

Icon_minipost Oct 21 '09, 11:07 AM

Hi Will,

What sort of fees are you charging for this service?

Also, I assume that even if the end buyer is lined up with a deposit, the deal would have to be something you'd be comfortable closing on if things went South, correct?

Thanks,
Steph

Edited: 06/26/2010 at 10:11AM

Will Barnard

Rehabber · Santa Clarita, California

7238 posts
54461 Influence
23 Awards

Icon_minipost Oct 21 '09, 01:08 PM

Steph,
I do look over each contract and hud1. I alos look for the quality of the end buyer and the amount of EMD they have in.
From there, a decision is made. For the same day transactions (24 hour variety) it makes no difference realy as my funds are not released until the B to C funds are there.

To answer the rest of your questions, may I suggest you go to my new website (also still under construction at this time) which appears in my signature below. (the short sale website and not the nationwide website)

Edited: 06/26/2010 at 10:11AM

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

Stephani Davis

Real Estate Investor · Tampa, Florida

190 posts
1193 Influence
2 Awards

Icon_minipost Oct 21 '09, 02:35 PM

Will do.

Thanks. :)

Edited: 06/26/2010 at 10:11AM

Will Barnard

Rehabber · Santa Clarita, California

7238 posts
54461 Influence
23 Awards

Icon_minipost Oct 21 '09, 02:56 PM

No problem, if you have any other questions, please feel free to shoot me an email or call.

By the way, somehow I missed the conversation between you, J Scott, and the attorney in CA on wholesaling REO properties. I just jumped in and hope the conversation continues.

Edited: 06/26/2010 at 10:11AM

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