All Forum Posts by: Jesse LeBlanc

It’s quite simple and unfortunately people overthink it or get caught up and STUCK in the mindset of “cash out” refinance which then most of the time requires seasoning vs the SAME PROCESS but a different name which then moves the refi right along without question.

If you don't need to pull cash out, if you want to have the lowest rate and lowest loan amount, if you want the lower PITI payment, if you want to cash flow more, DO A RATE & TERM REFI! Don't mention "cash out" and you'll be just fine and DO NOT have to wait. You can literally get the final appraisal as the paint is drying in the wall from your rehab (if you worked that quick lol).

pay off your prior loan, then get into a conventional loan at the lowest rate and out of your interest only prior loan (if that’s how your prior loan was structured).

Ummmm I’m not sure where or how you ASSUMED that @Stephanie P..

I 100% have them in 1st lien position with a recorded lien. Just as I do when I loan to my investors as well. I didn’t realize I’d have to explain the obvious to a Lender/Broker.

Season periods for majority of lenders are common when doing a CASH OUT.  If you already have an existing loan, then just want to refinance (rate and term refinance) then majority of lenders won't have a season period requirement.

An example would go something like this: Buy the property at 60k with 10k rehab.  Borrow 70k from private money lender (your friend, neighbor, family, or someone else.  Can also be Hard Money lender but fees are higher).  Rehab the house, now you have ~70k all in (to keep it simple).  You start the refi process lets say a month later when your cosmetic rehab is done.  The lender sends out appraiser, appraises the house for 100k.  

The lender will now give you max of 80% Loan To Value, most like to be at max 75% loan to value.

Since you only have existing loan at 70k, they max they can give you is 70%, or 70k BUT can also roll in their lender fees. So lets say at the end of the day if their max was 75% LTV, but you have 70k loan with 3k in fees, they'll give you a loan of 73k on the refi.

You go to closing, and BOOM, you have ZERO of your own capital left in the deal and then you rent or do whatever you want with the property from there.

@Katie Greenman

Yes, you 100% can. I do this for all of mine and have ZERO of my own funds left in the deal for infinite ROI.

Utilize private money, then if I’m rehabbing it I’ll start the refi and have the appraiser come in right after our rehab.  Whether that be 3 weeks or 2 months after purchase.

I do a Rate and Term Refi.  DO NOT mention a cash out refi in this scenario.

I believe it’s very helpful for some wholesalers depending on the situation and state.  I know Wholesalers Transactional Funding funds a lot of double closings.

If there are any wholesalers that would need Transactional Funding on double closings due to legalities or concerns, let me know.  Wholesalers Transactional Funding, can be found on FB.  Our website will be live later this week.  I have 4 closings this week with more on the schedule.  I know there are states like North Carolina that now won't allow assignments or double closings done by the same attorney and require transactional funding or YOUR OWN CASH.

@Robert Shorey agreed 100%

Setting the stage from the beginning means we sleep better at night and we know we’re here to help all sides out making everyone happy. If done in this manner, there should rarely ever be an issue unless it’s something with title.

Also, if anyone ever need Transactional Funding, look into Wholesalers Transactional Funding.

Great post, thank you sir. 🤘🏼🙌🏼

It depends on how transparent you are with the owner/landlord and how you feel their response would be.  If you feel they'd be cool with it, then assignment is always the best as you'd retain more of your profit this way.

If you're unsure, then there is nothing wrong with a double close.  You'd satisfy the seller, you'd satisfy another investor and you'd recoup some of your rent back after 6 years. :)

@Tim Lee I see you're tracking your KPI's, I love seeing when wholesalers actually run their business off of the facts.  Have you checked out Wholesalers KPI, it's an online KPI Dashboard for Wholesalers.

@Saravanan Saravanan it's honestly more case by case (but to keep it simpler, we just don't advertise it there), but we have ran into situations in CA where some double closings couldn't take place on the same day.  We don't offer Gap Funding.  As for NY, i've not spent a lot of time investigating it yet, but we have heard from other lenders that laws/regulations, reporting etc are trickier there and have seen MANY not lend there.  So until I fully understand the reasoning, I have just stated that we aren't lending there until further notice.  It might be absolutely NO PROBLEM for a private individual such as myself, and more of a problem for a lender who is pooling money and dealing with SEC perhaps.  But again, i've not researched it since we have plenty of ongoing business in other states currently.

Are you familiar with any issues or can shed some light on this and maybe I shouldn't be concerned with either state?