Investor · Atlanta, GA · Member since 2015 · 12 posts · 2 votes
Hello,
I'm currently close to putting a contract under offer with a bank with a $40k profit for some cash buyers/rehabbers. Unheard of now in the Decatur/Atlanta market.
I'll be wholesaling this via a double close using transactional lending but just wanted to clarify who gets what, and when?
Can anyone please give a full step by step run down of when I pay the closing attorney, my end buyer pays me and anything else in the process which can slow me down as I'll want this done quickly....
I thought I'd post in here as I'm working in the Atlanta market and also keen to develop relationships too.
Georgia closes only with attorneys, and I have not come across one that will allow use of the end-buyers funds; so your thinking about using transactional funding is appropriate. The transactional funder authorizes disbursement of their funds once the end buyer funds are in escrow with the same closing attorney. They then close and record your purchase and immediately after close and record the Deed on your sale to the end buyer. Fees for the funder and your profit are then disbursed from the second (your sale) transaction.
Because your purchase is being handled by the banks chosen closing agent I suggest you contact them soon regarding your desire to resale same-day. Approach them with "I am going to resell this property and would like to give you that business also". Be aware that some bank appointed closing agents will not want to do both transactions because their primary interest is in the relationship they have with the selling bank. I have found that most in Georgia will do both closings. If they will not you can possibly do a split escrow with the second transaction happening with a different closing attorney. Most transactional funders will not allow this (the split escrow) but it is possible to accomplish.
If you haven't had a chance, also keep @Darrell Shepherd in mind with Lone Palm Lending. He helped me out tremendously yesterday by connecting me with someone and definitely opened up some new ways to go about my business. When I close my deal, I will definitely be using him.
@bo wagner, can't tag him, but you can use his page to contact him. Great guy and willing to help!