All Forum Posts by: Duane Ortega

@Monica McGrath

@Monica McGrathUnfortunately, I've heard of this bait and switch tac tic and people who've spent their last dollars. From my experience, and I agree with bernard, it is much better to spend your time learning and networking with local REIA groups. I am from NJ and know some REIA groups near you. PM me. If you need transactional funding, just google "transactional funding." I can point you to some How it works and case studies if interested. PM me if interested.

@Wade Stahle

Yes, that is one of the reasons to double close (seller doesn't see your profit margin).   Other reasons are to avoid any licensing issues or this is a non-assignable contract such as HUDs, REOs, or short sales.  To this end, you would need your own money or use transactional funding for the first closing.

@Lakresha Mitchell

@Lakeisha Smith

As for financing to wholesale a property, Lakeisha is correct that you can use transactional funding as one of the methods to accomplish this.

In a nutshell, the terms for this transactional funding industry are A=seller, B=wholesaler/you, C=end buyer. The AB portion is what you buy the property for (let's say $200K). The BC portion is what you sell the property for (let's say $275K). FMV = $300K. Therefore, C has instant equity of $25K and is motivated to buy. You get AB and BC under contract, contact the closing agent and arrange for them to close sequentially on the same day. Then apply for transactional funding. Then you close. The transactional funding funds the AB portion ($200K) with nothing out of your pocket at closing. Then the BC portion closes minutes/hours later on the same day and pays transactional funding principal+fees+any closing costs. You pocket the difference as your wholesale "fee." Transactional funding is used when you cannot assign a contract such as for REOs, HUDs, or you may not want the C buyer to know how much you are making.

PM me if you have any questions.  I can point you to some case studies and how it works as well if you're interested.

@Brian Wheeler

@Brian WheelerI haven't read your contract nor am I an attorney - however, if your contract says, "and/or assigns," then it should be fine since that states that you may or may not assign it.  An attorney doc review would be recommended and prudent in any case since local laws may be different from your neck of the woods.

@Luis Suarez

@Luis SuarezYou can google "transactional funding" or feel free to PM me.  I'd be happy to answer any questions you may have.

As long as you use separate funds for the AB (A=seller, B=wholesaler/you) closing and C's funds (C=end buyer) funds the 2nd BC closing, you can double close.

@Isata K.

@Isata K.I double closed with a good attorney in Raleigh.  PM me if interested.

@Chad K.

Transactional funding is a form asset based lending provided you already have an end buyer.  There usually are no points or fees upfront and everything is taken on the back end.  Google transactional funding and look at their "How it works" and "FAQ" pages.

Hard Money is another form of asset based lending which seems to be of interest to you.  I have a friend who is a hard money lender and usually, they take points upfront 4-6 points (or less if you have an established relationship) and 10-14% on the back end.  Your FICO does not necessarily come into play.  The qualification for Hard Money should really be called "it depends" as everything depends on the scenario you present.  In a nutshell, the less risky you make it for the lender, the more favorable they look at your request.  Additionally, if you are an experienced rehabber, there will be less red tape in general.

Good luck.

@Account Closed

Google "free proof of funds" or "transactional funding" for POFs. However, if you do want a transactional funder to verify the POF, it would have to be with the intent to use their funds for a back to back closing. Many just abuse the POF and not go through with the back to back wholesale... they use it for a rehab for example. If this is the case, transactional funders will not confirm your POF when the rubber meets the road. This type of abuse gives the free POF guys a bad rap and many think they are fake because they are ubiquitous. Hope you do the right thing. Good luck.

@Charles Sullivan

PM me.  I have double closed with quite a few title companies in Texas.

@Gabrielle Eldefrawy

@Gabrielle EldefrawyUsually you would short sale a pre foreclosure and then double close or double close on foreclosed homes (REO) since they can't be assigned. Google transactional funding for companies who provide these funds. I know of several video tutorials or case studies using this type of funding that may be able to help you. PM me if interested.