All Forum Posts by: Michael Allan

Clear Title America, LLC should be able to assist you. They are located in Tampa, FL but offering services in almost every state. They are highly experienced with these sort of transactions.

I do not know what their pricing is however I agree with Eric Michaels that there are others who are cheaper.

There is risk involved when doing same day funding, there is always risk involved when providing money with real estate the collateral. Same day funding does have much less risk involved than extended term transactional funding. We provide equity contributions to businesses only, i.e. LLC's, not individuals.

To answer the original question, Jon is correct. To become a transactional lender, You need as much as is required to do a deal or to do however many deals you plan on doing.

We send out POF letters for our clients. From what I can see the majority of the objects are coming from the listing agents as they are not familiar with transactional funding deals. It seems easiest for them to blame the bank, rather than themselves for denying the letters.

We have also seen them rejected by WF, however it is not common and seems to not be a company policy but office/negotiator specific. The same can be said for their approval letters. We have seen them include a 0, 30, and 90 day required holding period.

In the past, I have spoke with the seller or seller's agent regarding the POF which they then tend to accept after originally declining.

Let me know if anybody has issues as we are here to help.

Thanks

Mike

Maryann. I am sorry to hear about your experience as this should never happen. We typically reply to all submissions within 24 hours of receiving and provide the list of items that is required to proceed at that time. Feel free to email or call me to discuss directly your past experience. If we are delayed in getting documents from third parties, obviously the 7 to 10 day turn around will be affected. On the other hand, if the C-Buyer is using cash and a shorter term hold, we can typically close much quicker than 7 days. It is highly suggested that you use the services of a preferred partner, as they are extremely experienced with these type of transactions. Plus, when they are involved it increases our comfort in a transaction.

To stay on topic with this thread, we have two preferred mortgage companies we work with who are both licensed nationwide, offering end buyer financing for FHA, VA, and conventional loans. Most importantly, they are very knowledgeable, staying up to date with product guidelines and close loans quicker than most; ultimately reducing the cost for the B-Buyer.

Below are all of our preferred companies, who are all highly experienced and knowledgeable on “flip” deals. (Keep in mind, that these are our “preferred partners” not because we receive any compensation from them, as we do not, but more so because of certainty of closing is much greater when they are involved based on our experience.)

Mortgage Companies:
Jason Gill – Prime Lending
[REMOVED]

Paul Blaylock – CBC National Bank
[REMOVED]

Escrow Company:
Audrey Bankhead – Legends Escrow Services, Inc.
[REMOVED]

Title Companies:

West Coast:
Grant Brittain – Lawyers Title
[REMOVED]

East Coast:
Jennifer Lombardi – Talon Title Services
[REMOVED]

Gary Alderman – Clear Title America
[REMOVED]

Devon Fraser – Ad Valorem Title Company
[REMOVED]

I hope this can be helpful for many investors. Thanks

-Mike

Well said Chris. Surrounding yourself with an experienced team is one of the most important factors.

Mike. When reading the beginning of your post I was going to suggest the route you ended up taking as it is becoming a popular practice.

If you come across a buyer who does not want to partner or purchase the corporation from you and you are restricted to the longer hold period, Aegis RE Partners offers transactional funding for up to 60 days.
http://www.aegisrepartners.com/transactional-funding/

I do not know of any other transactional lender that will go this long of a term, but I may be mistaken. Otherwise the best option if you do not have or want to use your own cash a private investor or hard money loan may be your only other option.

Best of luck!

Hi Toni. Yes, Aegis RE Partners’ programs a different than the standard HML. The most popular product, which is the transactional funding covers 100% of the purchase price (minus EMD) including closing costs as long as there is an end-buyer in place. Holding periods are capped at 60 days as well as available in all 50 states. In regards to the 100% Rehab Funding program, this is 100% Loan to Cost (LTC) and not to exceed 80% Loan to Value (LTV) of the After-Repair Value (ARV), with a split of the profit between the investor and Aegis RE Partners at the resale and determined by the investor’s experience and holding period. This program is only available at the moment in California, Nevada, and Arizona.

I am sorry but I do not have the answer for you in regards to your S-Corp question as somebody else on the forum may be better to assist with this. As for your question on portfolio lending, these two programs are all that Aegis would offer as we offer only short-term loans. If you are looking for a portfolio lender for longer term to buy and hold, HML may be a better option but yet expensive and not much longer of a term. I hope this helps!

Agreed, that is step #1 once you have a contracted end buyer lined up. Your first prelim HUD is important but the most important in my opinion is getting a HUD for the 2nd closing while including the transactional funder's equity contribution as well as their fees to be collected. As mentioned, you don't want to have that 2nd close and then end up having to bring a check. Regardless, this should be required and picked up during the underwriting process of the transactional funder as if the calculated figures are low, how will they collect their money?

I think that Jackie is correct with her statement that the basis of the strategy should remain the same as it is for your smaller deals. As you mentioned, try to stick with cash buyers as jumbo loans are tough to come by. I know in Florida the cash buyers for their properties are all over the place since a lot are in town to escape the cold northern winters, in the mean time scooping up some good deals for investment or 2nd home.