All Forum Posts by: Kim Anderson

Scott has a great suggestion for you... and you won't be disclosing any specific addresses by doing it that way.

Are the sellers homeowners or investors? If homeowners, did they understand fully that they would still be able to market their property on their own, so they are not really losing anything? They may have seen that you wanted them to sign a contract, and might not have fully understood. Perhaps going through the option contract with them line by line would help clear up any misunderstanding.

If the sellers are investors, then I agree with Brian that something sounds strange. Investors typically want all the help they can get in marketing their properties so that they get sold quickly. Did they read and understand your option contract fully? What exactly was their objection to it? I would think that as investors, they would understand that you are wanting to operate within the law in this regard. Like Brian stated, if they can't state specifically what is causing them to hesitate, forget this deal and find some other investors to work with that don't mind doing joint ventures.

Hi Marie!

Glad to have you here! What part of FL did you previously live in?

You're doing the right thing by starting to get your buyer's list going. Wholesaling is a great way to go, and I wish you the best with it. You'll find some great people here who will be happy to answer questions and network.

Also, why not start with the bird dog contract template Josh has provided for us here on BP.

http://www.biggerpockets.com/forms/bird-dog-agreement.pdf

This at least gives you somewhere to start and then you can tailor it to your own needs. And as J Scott stated, be sure to let your attorney look at it and give the thumbs up.

Yes, Johnny, the process that Sharon is decribing is actually a simultaneous close. Your end buyer's money is used to fund the A-B transaction, so that you don't have to bring any money to the closing table. The one disadvantage to this strategy is that you won't find too many title companies these days that will still do this (as Bill noted). There are a couple where I live that will do them. And Sharon has found a closing attorney in her area that will still do them. But in many other areas, a simo close may not be an option at all. So when working directly with homeowners, you will assign your contract, unless you choose to double close.

With a double closing, you will have to bring money to the closing table to fund the A-B transaction (whether it be transactional funding or your own money). When working with a bank (be it an REO or short sale), unless you can find a title company to do a simo close, you will have to double close, since banks will not allow assignments.

Definitely get a non-refndable deposit from your end buyer. This will hopefully deter them from not following through with the closing. The amount of the deposit you get is up to you.

But I'm not sure exactly what you are saying... because the interest on the trans funding will only be incurred if the closing actually takes place.

Someone else may be able to answer this better, but I would just have a clause that gives me the right to an extension on the contract (like 30 days or something).

They are not "illegal" per se, but my understanding is that because of the intense scrutiny from State and Federal regulators (because of mortgage fraud that has taken place over the years), most title companies prefer not to conduct simultaneous closings any longer (even if you have a cash buyer).

Most of them will require that the first closing “stand alone†(i.e., the investor brings their own funds to the closing table for the A-B side).

For funding the A-B side, unless you have the money yourself or have a partner with the money, transactional funding is a good way to go.

Back in the day, title companies would do a simultaneous close, whereby the end buyer's money was used to fund the A-B transaction. But the number of title companies that will still do this are few and far between. There are a couple in my area that will still do the simo close... so it is possible to find one, but your chances are slim.

The trans funding does not cover a down payment or earnest money deposit. It covers the purchase of the property on the A-B transaction (including your closing costs), and you have to have your end buyer already lined up and ready to go.

Jason, check out this thread from a few years back:

http://www.biggerpockets.com/forums/12/topics/9028-help-us-build-a-birddog-how-to-faq?page=1

I understand. Thanks Josh for responding. I just never had that happen before.

Okay... so the topic may have gotten locked? It's just very weird since it still does show up on the forum home page.

Well, okay, I'll just let that one go.

Thanks Bill and Bryan for your responses.