What is flash cash?

"If its really a good deal, wholesale it. Yeah, its trickier with REOs, but you can do a double close or do flash cash or find a partner or something."

Edited: 06/26/2010 at 07:07AM

Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado

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Feb 01 '09, 01:41 AM

Flash cash is money you borrow for one day to do a double closing. You use it to buy the house, then immediately pay it back from the proceeds of your sales transaction.

Edited: 06/26/2010 at 07:07AM

Jon Holdman, Flying Phoenix LLC

Jon Frame

Wholesaler · Nazareth, Pennsylvania

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Feb 01 '09, 06:31 AM

Hey Jon,

Do you know anyone who would provide flash cash? I know and have dealt with hard money lenders. If credit is an issue I know some people who could use it to do a double closing. I'm sure if the numbers are right and you know the deal will close hard money lenders may do it. I was just wondering if there is anyone who specializes in doing those type of loans.

Thanks,

Jon Frame

Edited: 06/26/2010 at 07:07AM

N.A N.A.

Real Estate Investor

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Feb 01 '09, 06:55 PM

Have you ever known of small local banks or national banks that do this?

Edited: 06/26/2010 at 07:08AM

Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado

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Feb 01 '09, 07:08 PM

Nope. Someone who deals with hard money may be able to do flash cash, too.

Edited: 06/26/2010 at 07:08AM

Jon Holdman, Flying Phoenix LLC

Stephani Davis

Real Estate Investor · Tampa, Florida

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Feb 02 '09, 08:17 AM

Coastal Funding does flash funding for REOs and short sale deals. You have to have the end buyer lined up, though, or they will not fund the deal.

I've never used them, and can't vouch for them, so make sure to do your own due diligence.

Steph

Edited: 06/26/2010 at 07:08AM

Mike Henderson

Residential Lender · Littleton, Colorado

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Feb 16 '09, 12:46 PM

I'm writing a post about this in a different forum.
Seeking Financing, Money, or Loans

I think it is under Real Estate dealmaking

Edited: 06/26/2010 at 07:17AM by Mike Henderson

Mark A.

Real Estate Investor · Orlando, Florida

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Mar 17 '09, 02:29 AM

Just an FYI, I have used Coastal Funding in the past with no problems whatsoever.

Remember, you do have to have your end cash buyer in place. You do not see the money, it just gets wired to your closing company on the morning of closing and wired right back to Coastal about an hour later.

Edited: 06/26/2010 at 07:36AM

Chad Black

Real Estate Investor · Edmond, Oklahoma

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Mar 18 '09, 12:21 PM

[SOLICITATION REMOVED]

Edited: 06/26/2010 at 07:37AM by Moderator

Account Closed

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Apr 22 '09, 10:33 AM

Originally posted by Chad Black

[SOLICITATION REMOVED]

Hi Chad, could you email me a flash funder you've had successful experience with?

Thanks.
Moe
[EMAIL REMOVED]

Edited: 06/26/2010 at 08:01AM by Moderator : email removed, use signature

Dave Williams

Hard Money Lender · Denver, Colorado

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Jul 08 '09, 04:46 AM

Your not really getting around any REO rules on wholesaling unless the lender ends up clouding title for resale, which some are doing now. The easiest way to think of this is 2 totally separate closings. You are closing the a side transaction using a flash cash loan, then you are selling the property in a separate transaction where you loan is going to be paid off. I have been doing flash cash loans for a few years now and very seldom do you run into any issues, but in this business the rules change so often you never know. Hope this helps.
Dave

Edited: 06/26/2010 at 08:54AM

Sergio Ortega

Real Estate Investor · orlando, Florida

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Jul 09 '09, 05:16 AM

remember that with flash funding you have to factor in the 2-2.5% fee along with processing fee into your profits.

Edited: 06/26/2010 at 08:54AM

Paul Barrow

Real Estate Investor · Denver, Colorado

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Nov 28 '09, 12:21 AM

Originally posted by Jon Frame

Hey Jon,

Do you know anyone who would provide flash cash? I know and have dealt with hard money lenders... I was just wondering if there is anyone who specializes in doing those type of loans.

Jon - [LINK REMOVED] based specializes in transactional funding (aka Flash Cash). They are competitively priced compared to others mentioned here but are easier to work with. Another critical factor in these back-to-back closing deals is choice of title company (i.e., smaller is generally better!). Many banks force you to use their choice, but legally the buyer has a right to choose.

Edited: 06/26/2010 at 10:40AM by Moderator : fixed quoting