Real Estate Agent · Belleville, NJ · Member since 2015 · 408 posts · 94 votes
Hi everyone,
I am writing this because of the wealth of information here on BP. I am a new Realtor out of Northern NJ. I plan to work heavily with investors in the area. Background: I have a few investors I'm working with and they want me to submit offers for them. Now I have for a few but I've noticed that many of them use Plan D Investments as their Proof of Funds. I looked up the company and it is very vague. However, I did find it linked to Best Transactional Funding (a website). Again, I can't find much on the site except what it says. Apparently they give transactional funding and work from a to b and then b to c aka helping in case they need to wholesale. Long story short, is this company legitimate in its practices? I see a lot of investors using them and I don't want to get in any trouble due to my lack of knowledge. Also, I was told by an REO agent when submitting an offer that this company was illegitimate, but I've had other offers pending still (none accepted yet).
Thought I'd add my 2 cents on this one. I worked with Duane and BTF on transactions in the past. Every single POF letter used on a deal was acceptable and I closed with them. The key to making these deals work with transactional funding is to work the transaction BACKWARDS. You MUST locate the end buyer first. Find out their criteria, make sure they have the funds, then use the POF letter to place the property under contract. Also, this type of transaction is not suited for conventional financing. Cash or hard money are the best methods to use when speaking of the end buyer and their funds. But yes, unless you have an end buyer FIRST, every other component in the transaction is a waste of time.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
@Johnathan Boyle You are wasting your time, and the sellers time, with these "investors". They've chosen you because any agent who realizes what they're doing won't waste their time with them. These are Not legitimate POF's for your purposes. While they may actually provide transactional funding, they provide it Only if your buyer/wholesaler can go find a real buyer to flip the property to, and that buyer puts their cash in escrow, Then the transactional lender will place the money for the A to B transaction in escrow since an end buyer has put up their cash. If your wholesaler can't find a real buyer to flip it to, then the POF from the transactional lender means absolutely nothing, since they won't fund. This why the REO agent, and any other knowledgable agent, will tell you these are useless. A POF means the Buyer named on the cash purchase contract has the cash in their name in the bank, period.....nothing else qualifies.
My name is Duane Ortega, and I am the President of Plan D Investments, LLC. We are indeed a legitimate company, and have been in the transactional funding business for almost 7 years. Our website is BestTransactionFunding.com. You are probably seeing a lot of investors using our POFs because we are from NJ and know a lot of investors in the area. Word has spread throughout the state and country over the years.
We provide these POF letters for wholesalers who intend to buy/sell/wholesale a property using transactional funding. They are free of charge and can be attained 24/7 through our website.
Did I answer your questions?
If you have any further questions, please lookup my contact information and email or call and ask for me. I'd be glad to answer any of your questions.
Hello and welcome to BP! The best transactional funding is when you pay cash and do not need funding. Owner financing and private funding are probably the next best. Conventional financing is probably next. I am 59 years old and I have been in the construction business since I was 17. I found BP about 6 months ago and I am still deciding what I can do part time, if that is possible. I was born and raised in Dallas Texas. I got a college degree in business with an emphasis on real estate in 1980. I also got a broker license in 1980 and I did a few deals for other people. My Dad has been in real estate for about 40 years and I learned a little bit from him. If you think I can help you in any way please contact me at any time. Good luck to you!
Wholesaler · Trenton, NJ · Member since 2015 · 21 posts · 4 votes
10y
Wayne Brooks, you are right on point. Nothing else to add. @ Duane Ortega, do you have a rebuttal, since you are the president of this Plan D investments, LLC?.
Thought I'd add my 2 cents on this one. I worked with Duane and BTF on transactions in the past. Every single POF letter used on a deal was acceptable and I closed with them. The key to making these deals work with transactional funding is to work the transaction BACKWARDS. You MUST locate the end buyer first. Find out their criteria, make sure they have the funds, then use the POF letter to place the property under contract. Also, this type of transaction is not suited for conventional financing. Cash or hard money are the best methods to use when speaking of the end buyer and their funds. But yes, unless you have an end buyer FIRST, every other component in the transaction is a waste of time.
Transactional Funder · Neptune, NJ · Member since 2011 · 187 posts · 86 votes
10y
Thank you Wayne and Copelon for your feedback. I couldn't have said it better.
In a nutshell, yes, these POFs are legitimate and do work as long as you have a cash or hard money C end-buyer. We fund all over the country, and these are accepted all over the country from experienced investors who actually close back-to-back transactions.
Flipper · Hartford, CT · Member since 2017 · 89 posts · 10 votes
9y
I submitted my information for a POF letter this evening because I needed to get the offer in ASAP. My funding office is closed. I was going to use this site but decided against it. Can anyone tell me anything about this site?
Real Estate Consultant · Colorado Springs, CO · Member since 2013 · 325 posts · 117 votes
9y
There are an unfortunate few, maybe many in our industry that know nothing about subject-to's, land contracts, lease options, master leasing...transactional funding. Educate and keep it moving.
Scottsdale, AZ · Member since 2017 · 4 posts · 3 votes
9y
Hi, Thank you for your info. I have a home listed in Arizona and got an offer from a Realtor investor with POF from a hard money lender. The first POF, the hard money lender did not answer his phone or call me back so the Investor decided to go with Plan D Investments in NJ. I was planning on calling them on Monday to verify funds. You have enlightened me as to how the process works, Investor must have a buyer with funds in escrow by the closing date or else the hard money lender will not fund, is that accurate? So, this is very risky for my Seller if I am understanding this correctly. Can you please confirm that my understanding of this process is accurate? Thanks alot
Inspector · Mililani, HI · Member since 2016 · 170 posts · 31 votes
9y
Transactional Funders have REAL money they want to lend. They need to protect that money somehow. If you were a Transactional Funder, would you do it any other way? For the most part the Interest & Fees charged from a Transactional Funder is much LESS than using Hard Money. Transactional Funding is a very viable way for an Investor to seek in Purchasing property.
If the Investor works with an RE Agent who knows the market and can advise along with advertise the property, then everyone wins.
But if the End Buyer is not lined up, then the deal falls apart for everyone. But that can be said about traditional owner-occupant transactions when financing falls apart.
There is no guarantees, but Transactional Funding is a Real & Viable option ... as long as the Investor knows what he/she is doing and does everything they can do put the deal together. If the Investor doesn't know what he/she is doing, no matter what strategy or funding source, it's gonna crumble!
Specialist · Kenner, LA · Member since 2014 · 289 posts · 31 votes
8y
Originally posted by @Account Closed:
@Copelon Kirklin When can we chat? I saw your site and I can call Tuesday.
My sincerest apologies as I'm just seeing your message. I'm haven't been on BP in quite some time. But if you're still interested in chatting, I'd be more than happy to make time.
Real Estate Investor · Chicago, IL · Member since 2016 · 48 posts · 8 votes
8y
I just received one of these transactional funding letters to be used as POF for a buyer claiming to have cash... I knew 100% that this was not his money.
I am working with a realtor whose sent me listings and I found 1 I really like. The realtor requested proof of funds . Now I have a potential buyer in mind . I liked how Mr. Kirklin suggested working the transnational funding backwards. When I reach out to the potential buyers as a wholesaler how will I request funding for the POF ( proof of funds ) ?
Also, if all that goes well. Then what kind of transaction will the End buyer and my realtor have? I don't want to be removed from the transaction .
Rental Property Investor · Tampa FL 33610 · Member since 2011 · 254 posts · 56 votes
7y
@Matt P. exactly. @Katia Y. sounds like the realtor has not worked with investors. "what kind of transaction?" is not clear. This sounds like your first sf.
My friend is a new realtor and I am getting into Investing/Wholesaling. So, she emailed me her fixer upper listing and I found a few I liked. She requested a proof of funds ( I don't feel comfortable w/ best transactional. No offense) we are friends and I want to go about this the right way. I am looking for a potential buyer. ( A formula for success and to get going) What should I do to get started?
The property is in a really nice area ( near the magnet schools) .
I am guessing my next step to go forward is the motivated buyer, but how do I show proof of funds ?
Should I tell my friend/realtor that a 3rd party will buy the property ?
Rental Property Investor · Tampa FL 33610 · Member since 2011 · 254 posts · 56 votes
7y
@Katia Y. I have not used the company mentioned. Your value is not with MLS unless super duper bargain and you have the contract in your name. Yes tell your friend/realtor your plan. Bid? You need to get the property under contract with the owner.
My advice to you is to learn the wholesaling process (steps) here on BP with the education/resources. I learned online and then started making offers.
Hey BP'ers - Shout out to a connection of mine - we met HERE on BP and closed a fixer deal in GA in September. Virtual wholesaling !!!