Double, or simo closing, using transactional funding - advise pls
Hello Forum People -
I have a clear understanding of how transnational funding works, but I have a few questions regarding other legal and real world hiccups that I would like some guidance with.
I am direct residential lender, and when I read about how transactional funding works, I get stumped on some issues I would love clarified.
1. When B sells to C (after the A to B transaction moments prior), title is not yet recorded from the A to B transaction. How can there be conveyance of title on the B to C transaction?
2. On the B to C transaction, is "C" buyer typically another investor with cash or private money? If I were the lender to "C" buyer, and "C" buyer is purchasing the property as a primary home, FHA is out because of the 90-day flip seasoning, and Conventional is possible, but again, "B" is not yet reflected on title. The Underwriter would squash this deal.
Looking forward to your expert replies on the above, or offer workarounds.
Lastly, if I want to become "B" in the scenario as an investor, what are some of the techniques used to find "A" seller and "C" buyers quickly and promptly, in order to arrange the transaction?
Thanks again!