What is flash cash?

Question

Can you tell me what a flash cash is and how you get around the REO's rules on wholesaling?

"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."

Stephani Davis · Answer

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

N.A N.A. · Answer

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

Jon Holdman · Answer

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.

Sergio Ortega · Answer

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

Dave Williams · Answer

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

Chad Black · Answer

[SOLICITATION REMOVED]

Mark A. · Answer

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.

Mike Henderson · Answer

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

I think it is under Real Estate dealmaking

What is flash cash?

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