All Forum Posts by: Jesse LeBlanc

The PRIMARY reason this was created was for another great revenue stream for Pace Morby.  Secondary would be for all of the clients, "Gators" who follow his program and use it.

MAJORITY of the clients don't even have a little capital, enough to fund the first EMD deal and come back to the group for funding. In the program they can bring their deals back to the program and allow "Pace" to fund while keeping the bulk of the profit leaving a little for the "gator". Meanwhile, Paces clients very slowly build up their capital, but we all know the majority will spend it and come right back to the group to let Paces organization fund it so he continues building his wealth from all of these "gators".

Do I get annoyed hearing about this every day..YES..Do I think it was a great form of revenue for Pace..YES. Do I feel that over 80% never will do a deal and or don't know what the F they are doing..YES which makes it even more annoying. However, those few who are financially saavy and have integrity and grit I believe will benefit from it until they are able to have enough experience to go off and do their own thing, charge less fees and be able to have more repeat business while keeping a much higher ROI themselves.

And NO, i've never been in this program, been around much longer than he even thought of this revenue stream.  But I do refer any EMD request over to a contact of mine who happens to be one of those 20%.  He's used the program to learn but wise enough to realize his own potential and live within his means while stepping away from his W2 and becoming an entrepreneur.  I'm all for seeing others get away from the rat race and have the grit to fight and create their own success story.

@Scott Walker I personally charge 1% in all states while CA is 1.5%.  However I see others charge up to 3 points.  I believe most common fee is around 1% though.  Some will charge MORE points the higher the amount needed. I've heard some of them feel like the client doesn't have the money, more desperate the higher the amount needed and will charger higher points.  

@Lucero Cruz Narino EVERYTHING between buyer and seller is negotiable!  If you specify which closing company that must be used, then 9/10 times the buyer will do just that.  If the buying party requests or demands closing elsewhere, then you have a choice to make.  Keep it with your current closing team or simply sign an amendment to change closing teams.  that simple :)    

@Lucero Cruz Narino I too agree with David.  There is nothing wrong with disclosing your assignment fee.  I mean there are some assignment contracts or closing companies that will allow you to put the end buyers price on the contract vs the assignment fee then the closing team does the math.  HOWEVER, a wise investors should ALWAYS be looking at the original contract to know what they are assuming, and would see the purchase price.  HOWEVER, in that case some wholesalers I see commonly share a copy, but black out the purchase price.  

But that then means that this wholesaler is either super scared, insecure and or for sure not confident in themselves or their deal if they are that worried about it.

Lastly, you can always do a double close.  You legit buy the deal from the seller and same day become the seller and sell to your end buyer at your closing company of choice.  You can either use "pass through" funding, meaning you use your end buyers funds to sit in escrow and be used for your purchase from the seller as well.  Some closing companies won't allow that, some states or counties won't allow that.  In that case, you call us and we'll fund it for you using Transactional Funding for a same day loan to send the funds on your behalf so you still close the deal and all parties win.  

Good Morning @Armand P., I think a little bit of everyone is feeling the longer DOM at the moment. I have quite a few flips on the market now.  As expected, the majority of feedback is that the house is worth the price BUT most of the buyers aren't happy with their monthly payment and therefore are asking for 15-20k below PLUS 10k in sellers CC.

Although all priced right (including one offer falling through after appraisal etc plus higher than asking offer) agents have confirmed price is good but buyers are pushing way back these days.

With that said, moving forward MAKE SURE you account for an extra couple of months holding costs.  When you buy and go into the deal, already account for the extra holding costs that way by the time it hits the market if it take 30-60 days just to go binding, you're not stressing as much.

 After mentoring for years and operating my own wholesale company, lending, obtaining a portfolio of rental etc, I HIGHLY suggest that you first start our buying in your own personal name UNTIL you have a few deals and some consistency. 

If you're simply wholesaling in the LLC vs buying rentals, then it's a pass through entity anyway, so you'll be taxed the same. It will just be one more added expense (although very little) that you don't have to worry about when starting out. After a few deals, some consistency then I'd look into the LLC but talk with your CPA on how you want the LLC setup in the eyes of the IRS for the tax structure depending on your future plans with that LLC.

In the past on almost nearly every rental I have purchased, I used to use PML to purchase/rehab then by the time the my rehab was done it was time to close on my long term refinance.  Since then, I've been trying to share with so many others how to obtain rentals using Transactional Funding for deals you have equity in and the property is ready for your refinance allowing you to bring little to nothing to the closing and adding another door to your portfolio.

Right now I lend on an average of 2 of these deals per month and it's quite simple.  The hard part would be to make sure you have a deal with equity and it's in the condition you'd like for your refinance.  Of course if you plan on leaving a little capital in the deal for a cosmetic update for example but want to control the deal right away, this strategy works as well for you.

In short, you find your deal with equity and have your long term lender ready.  Example might be that your lender will lend on 80% of the as-is value VS if you go to your lender for a loan to buy directly and NOT a refinance, they might only give you 80% of the purchase price.  If the house is currently worth 100k, in the 2nd scenario you'd have to bring 20k to closing.  I know there are closing cost, insurance etc, but for simple math we're keeping it like this.  

Instead of buying direct from the seller and using your lender then bringing 20k to closing, simply do a double closing using Transactional Funding.  Purchase the property and already have your lender ready for the refinance same day which then changes the dynamic of the loan.  You're now doing a refinance, and they'll loan say up to 80% of the current value!    So if you bought the property for 75k, paid for the first closing cost and lending fee's you'd still be in less than 80k.  Your refinance lender will loan up to 80k allowing you to control this property for ZERO out of pocket.

If you still have a lot of rehab to be done on a house and you don't want to leave a bunch of capital in the deal, use PML or HML first to purchase and rehab. Once done, refi out but DO NOT FORGET the option if the house is already in rent ready condition or minor repairs you don't mind coming out of pocket for and want your long term loan setup quicker...use Transactional Lending for a double close and you're off to the races adding another property to your portfolio. :)

@Joresia Martel Sincerely appreciate it.  Feel free to call us anytime if you have any questions or PM/email me if there is anything else that comes up I can help with. :)

@Joresia Martel we have worked with a few wholesalers who have used Accurate Title Company for their double closings that we've funded.

Accurate Title Company

Kaitlynn Ellis

7200 College Blvd.

Overland Park, KS, 66210

Good Evening @Kyle Thomas 

We just had a scenario like this with another wholesaler. It happens more than you think, but I love the fact you're resolving the issue.  I've funded quite a few out in Denver and would be more than happy to help you out on this one too.  If you don't mind, go to my website in my email signature and I'll get you taken care of right away.  BTW I have over 75 ALL 5 Star Google reviews, plenty of testimonials for you to check out as well if you'd like before you reach out.