Wholesaling REO & Using Transactional Funding

[Edward Beard]

I placed an offer (through a Realtor) on a REO today. The proof of funds letter I had was from a Transactional Funding lender. The realtor was confused on how to write up the offer because I was using Transactional Funding. Mind you, the Realtor DOES NOT know I plan to Wholesale the property.

I think she ruined my chances of getting the property because she wrote the offer up as me using Financing instead of a Cash offer. Which all this being said, how to do write up an offer when you are using Transactional Funding, Cash or Financing? I

[Will Barnard]

There is no law to divuldge who the beneficiaries are, just FYI.

As far as how I use the trust in a wholesale situation, once I have a property locked up, I usually have a couple days to get the EMD in as well as the trust certification doc. During that time, I go to my buyers list of real buyers and offer the deal. It usually gets spoken for that day or the next. At that point, I am the trustee of the trust and I name by buyer as the beneficiary. This way, my buyer is the buyer all the time, I am only the trustee signing docs. At close, there is only one title/escrow, one transfer tax (apid by seller usally) and no transactional lender needed. In fact, the beneficiary (my buyer) also places the EMD into escrow. Since I am charging my buyer more than what the purchase contract is, I simply (as trustee) instruct escrow in teh escrow instructions that the intentional over funding of escrow proceeds are to be wired to my account (which is my wholesale fee).

There are no transfers of beneficial interest to trigger transfer tax and the only thing that is done is that I as trustee resign and a substitution of trustee form and Grant Deed are executed (no tax, just small filing fee).