All Forum Posts by: Jesse LeBlanc

I'm more than happy to see if I can help you out. Wholesalers Transactional Funding.    But to answer your question, MOST Transactional Lenders will only send their wire once the BC has funded and in escrow.  However, there are some that will have loan docs as well as a CYA and usually don't bother recording them assuming all goes as planned, both closings same day.  There are many cases (especially with hedge funds and other KNOWN buyers for the lender) that they will allow the AB side to close and then record their loan docs (Security Deed or Deed of Trust and Note), then the BC closes 2-3 days later.  It's certainly more risky for many reasons, so he should be aware that it certainly could happen.  About the only way to know for sure that it doesn't happen, is to make sure his funds only came in AFTER the BC has funded, then the closing company could record the AB side followed by the BC side then release everyone's funds.  

@Logan Clark If you can assign your deal, you'll save money.  But I realize there are some attorneys and some states where you MUST use your own funds or use a Transactional Lender.

The sooner the better is best to find the right lender for you and your deals of course.  I also HIGHLY suggest that you have an idea of what your buyers will pay or a specific buyer in mind before you lock up a deal so you don't have the stress of trying to find a buyer later and risk pissing off your sell by not performing.

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Both Tim and Joe NAILED it as PC as they possibly could and 100% accurate! :)

I'll add that you'll be far better off getting on a lot of other wholesalers list and build solid relationships with them vs New Western or Net Worth.  Especially for someone new, you won't be as pressured last second as they like to do and you'll make far less mistakes if you don't buy from either of these. 

Check with Harry Marsh Law @Shayde Hunter I do a lot of Transactional Lending for them and I know of a LOT of wholesalers that use them.  I have backups but this is my go to closing attorney nearby

I'm sure there will be some folks on here that can chime in with referrals for CA too

@Bryan Igboke don't get me wrong, it happens a lot.  Here in Atlanta the majority of wholesalers that don't assign and do double close end up using this method.  The majority of investor friendly closing attorneys here will use this method. 

But there are states like North Carolina where the NC Bar no longer permits this.  It's also the same with "blind HUDs".

So just double check depending on which market you are/will be working in.

Depending on the state and the attorney/title company, it's called "pass through funding", where you can double close and use the BC funds to cover your AB purchase.  Some states this is not allowed, and then even some of the states that it can be done some attorneys or title companies won't allow it.

And here is the reason why, because the wholesaler isn’t “collecting a fee from the seller”.  If they double close for example, then by the time they sell the property, they have already bought it and now legally selling it to someone else.

so therefore they aren’t brokering

The other reason for not assigning is that the end buyers lender won’t approve since you aren’t on the deed and the owner at the time you went under contract with their client

but then you can allow your seller to go direct with the end buyer and you become a line item on the seller side with your fee and the end buyers lender will not have a problem.

I do 100% agree that there is a better and more efficient way of wholesaling, that is find your buyer first and seek out what they are looking for and be transparent with your seller as to who you are and who the person is that will be the end buyer.  unfortunately, MAJORITY do not play this way.  

That then brings in the variable of if a wholesaler knows their market well enough AND has the means of following through with their intentions and promises to a seller, then they don't need an end buyer first if they CAN and WILL perform regardless.  Again, how I operate and teach, but not everyone does.