All Forum Posts by: Benjamin Krebs

Hi all! 

Im looking for more insight on transactional funding, if anyone has advice or experience using that I’d love to hear!

My husband & I are looking into buying an investment property to wholesale.(Our first deal.) The house is a short sale listed at $274,500 but valued at $393,900. In California where we live EMD is usually 3% (on average), but being new investors it's going to be hard to fork up that much money out of pocket. Here is my other plan:

We have a private lender who will 100% finance our deal. Thus we make an EMD of $100 and purchase at $280K. (And maybe have seller pay half of closing costs?)

Any experienced investors think this could work? And if not, what other way could we go about it? Any advice would be appreciated.

I just got my first contract signed. I was informed from another wholesaler that I should not have turned in my EMD to any title company cause if the deal fails I could be charged up to $2000 by title companies for them pulling title. Do they automatically pull the title? She is just holding my emd funds in escrow until closing as I discussed with her(title company). I was also told I could be sued by the owner if I did not have enough funds in my LLC to cover the cost of the contract!? This has me shaking in my boots because I for one learned the EMD was refundable provided the contract clearly stated. And for two I have the right to void the contract within a certain period of time if I do not find a buyer? I'm so confused now. You hear all of this you don't need money to wholesale then I'm being told I have to have the funds available and ready if I do not find a buyer. I'm worried now. I was excited at first. This info is from someone that I was contemplating on doing a jv deal on this property. But he suggests I use the law firm he uses since he has built a rapport with them. My guess is I would need to assign contract over to his LLC since he says he has the proof of funds available. Makes no sense to me. Can someone clarify to me what is going on?

Has anyone had experience with this? Where did you find your gator lender?

Hello BP,

I am reaching out to inquire about EMD lending. Are there private money lenders who fund EMDs only? Trying to research available options where the effort exists, offers are being accepted, but the credit situation isn't the best. I have 4 offers I can move on right now but I do not have the funds for a "required" EMD. I do not have family or friends that could help (already exhausted that possibility) and I have a PT job that will take some time to accumulate the funds. Any advice would be deeply appreciated.

Thanks In Advance,

I’m new to wholesaling and I’ve found a few properties, but they require a Proof of Funds or a Earnest money deposit. I wanted to know how can I avoid those when trying to wholesale a property, because I’m not the direct buyer? Thanks.

Good morning/afternoon. I currently have a property under contract that is currently listed on the MLS(at a wholesale rate less than the market price), but i was called directly by the seller. Do I have to involve the Real Estate agent that has the house listed or can I go directly through the seller because he contacted me? I would hate to set things up with my buyer and title company then find out I did something wrong. I need to know whether i can move forward right now without legal repercussion.

So had a phone conversation this morning with @Miron Briley In our conversation Miron did the following:

1) explained how he heard about Pace's membership
2) what he has learned through the mentorships and some drastic steps he took to achieve success.
3) basic financials of some of the deals he did (purchases prices, interest rates negotiated for seller finance, some bird dog fees for bring the deals to other investors, units he has bought a buy and hold investor)
4) a very interesting story about his experience about his initial meeting Pace

What he did not discuss on mention

1) a plug for me to be  sign up for the mentorship
2) a pitch for gator lending

He said to call him if I was curious to talk in greater detail, even mentioning going over deals I find to see if it would be a good SubTo deal.  Now I have no plans to join to the mentorships but after speaking with Miron, I can see how a person (with the right drive and plan) could not only get value out his the mentorship but also scale very quickly.  I appreciate you taking time out of your day to speak with me Miron and applaud you taking what retired LCDR Willink refers to as extreme ownership of you RE future.  

WD