All Forum Posts by: Shari Peterson

Are you thinking of using the capital to invest in the Boston area alone, or are you considering neighboring states on the east coast?

I know of a number of title companies/attorneys that will do double closings. This means they will close the first (AB) with independent funds, followed by immediately closing the second (BC). They are recorded in the proper order. The key is that the first closing (AB) must come to the table with funds, either their own cash or a short term loan such as transactional funding.[Solicitation Removed by Moderators]

Hi Travis -- I know of a couple that I can refer you to. I don't think I can publish their phone numbers here on this forum. You can private message me and I'll be happy to share.

I understand that Tennessee has recently passed a new law that is impactful on Wholesalers. I believe the law now requires that you must be a licensed real estate agent/broker if you want to assign a contract.

Can anyone point me to the actual law online? I'd like to see the complete language of the new legislation. Thanks in advance.

You could get Transactional Funding to give you 100% funding to purchase the property, and then immediately re-sell it to your end buyer that same day at the same title company. There would be no cash out of pocket for you, and you'd get your profit spread at the second closing. These would be both the same day, so you would not be living in the property.

I have closed this type of deal where my client uses our transactional funding and his end buyer gets a VA loan. The key point is that the end buyer's lender or mortgage broker must be aware that you are buying and then immediately reselling the property to his client who is getting the VA loan. This bridges the gap between your seller showing as the owner of record when the VA does their underwriting. After you close with your seller, YOU will be the owner of record. This is evidenced by the Preliminary Title Commitment provided by the title company. Of course, both the AB and BC must close at the same title company.

I know of a few but I don't think I'm allowed to post their names and phone numbers here. You can message me and I can give you the details.

Hi @Jeffrey Emery  - Transactional Funding is short term funding used to close on a purchase of real estate, followed by immediately selling that real estate to a new exit buyer. "Immediately" can be defined as hours, or even days. There is never any rehab done between the purchase and the sale.

In California, you cannot buy and sell the same piece of real estate in the same day. You must close on the purchase (the AB Transaction) on one day, followed by closing on the sale (the BC Transaction) the following day after the AB closing has been recorded. A=The Seller, B=The Buyer, and C=The Exit Buyer. You as the investor are the "B" party in both sides of the transaction.

The reason people use Transactional Funding for wholesale deals vs. assignment is because either 1) they don't want to assign the property to the exit buyer because that would reveal their large profit in the deal, or 2) the purchase cannot be assigned because the seller won't allow an assignment. 

For the first scenario, as a general rule you want to double close using Transactional Funding when your profit exceeds $10,000 or 10% higher than your AB purchase price. The second scenario is common in short sales and REOs, but also sometimes FSBOs want to sell to the person they believe will live in the house they're selling vs. some stranger assignee who they have no idea who they are. 

The expression "double closing" can also be called a "double escrow", especially in California. This simply means that there are two entirely independent closing / escrow files involving the same property; one for the AB Transaction and one for the BC Transaction. 

Thanks for the quick response, Keith! I appreciate it!

Can anyone recommend a title company who will do a double close in the Metro East Illinois area? This would be the Illinois side of the greater metropolitan area of St. Louis. 

Thanks in advance for your help!