All Forum Posts by: Jesse LeBlanc

If "flash" funding is Transactional Lending, I'd be more than happy to help @Andrew Rosenberg :)  only 1% btw vs several points!!

It's best to have your buyer lined up first so you know for sure that you're going to get the deal already sold vs piss off the seller if you had to back out because you never planned on buying it yourself.  

Until you know the market really well, I wouldn't just put a property under contract then attempt at or assume someone will pay more than you got the AB side under contract for until you know the market or know your buyers and what they will pay at minimum.

If you want to try and get top dollar, get private funds, but the deal then as soon as you buy it, list it on the MLS. That will be the BEST place for you to get top dollar for the property without an auction.

You can still share other buyers offers with everyone who submit offers if you'd like to see if anyone will amend their existing offer later if you think you have a strong enough property in higher demand.

Start with 1 maybe 2 niches until you have a solid grasp or have someone take part of your process over for you so you can then move into another niche.  Don't try to do it all, figure out what works best for you and the time you have and stick to it.

Early on when building my portfolio, I have NEVER left $1 of my own capital in any of my deals. I would wholesale or negotiate a price from a wholesaler low enough to make sure that once I was finished with my rehab that I would be all in less than 80% (usually 70-75%) LTV so when I refinanced, I would completely pay off my Private Money Lender, and sometimes walk away from the closing with a few thousand and actually get paid to buy rentals.

If you use other peoples money, you can for sure then do a rate and term refinance with little to none of your own capital @George Duchatelier

@David Rey If you plan on double closing, all you need to know are 3 things if you're trying to determine how much of a profit you'll make.  I'm assuming that's what you're referring to.

-Estimated Closing Costs from your Title/Attorney
-Buyers Purchase Price
-Your Purchase price.

Subtract your price and closing costs from your buyers price.  That will leave your very close to the profit you'll be making and usually within a couple of hundred.

 Yes, but I HIGHLY suggest that you are transparent with your seller and letting them know your first intentions are to buy yourself, but as a backup you have another investors or partner ready to step in and that you'll still be able to get the deal sold for the price you originally agreed upon for example.

@Griffin Pratt I think either a POF or a pre-approval from your lender would suffice as per the counter. At the end of the day, the counter didn't say WHICH one you had to use to close with, as long as you have full intentions of either buying yourself or for sure selling it someone else and not stringing the seller along for a ride.

I'm more than happy to provide you with a legit POF if need be as well for Transactional Lending.

if Possible @Blaine Baker once you have a few buyers lined up and find what they're looking for, I suggest you remain transparent with your sellers to let them know that you might be assigning the contract or you can always word it as your business partner or investor might be the one who steps in at closing to sign the docs and that you might not be the one at closing. 

But I'd try to get a few deals under your belt before thinking about anything creative.  Assigning will also help you keep the most profit vs double closing.  But again, with some scenarios, it will be needed but cross that bridge when it happens.  Focus on your buyers now, then the criteria and start locating houses and sellers, then we'll get to the contract or assignment then and get you on your way to being successful.  Don't just lock up a contract, then go blasting it all over to find a buyer only to stress yourself out and possibly piss off the seller or lose the deal.  Be honest & transparent, this will help you to keep the process SIMPLE and easy with minimal stress.

@Blaine Baker

Both of the guys above nailed it. 🤘🏼🦾. I hope that answered your question sir. 👍🏼

I work with wholesalers daily and they’re double closings.  I always push for wholesalers to have transparency with both buyers and sellers so they can assign the contracts but there are always some scenarios or situations that lead wholesalers to using a transactional lender.

@Alisha Feaster good morning.  So you can easily write an amendment stating that the contract is assignable. Assuming you’ve got the relationship and transparency and everyone knows what to expect, then they should sign it no problem.  That would then allow you assign the contract.  If the agent (most of the time won’t be comfortable with wholesalers) wont work with you, begin finding agents and build relationships to educate them on what you’re doing and then start finding buyers.  By having your buyers first and ready to go makes the process so much easier for you and not have to back out of contracts usually.

If you choose not to do that on this contract, you can simply double close.  I’d love to help you out there if you needed the funds. But try to assign first and save you some $.