The housing and mortgage mess that began to unfold in 2007 created a lot of change in the lending and real estate transaction businesses. Title companies that used to do double closings and fund one deal with the proceeds of another are pretty much nowhere to be found now. However, there is a way to wholesale and flip properties with back-to-back closings without using your own money.
Of course, the first requirement is that you have a profitable wholesale flip deal set up. You must have the first property purchased at the right price, and a ready investor to buy it from you at a nice profit. The profit needs to be sufficient to cover a fee that will be required in order for you to use other people's money to get the first deal closed so that you can close the second sale to your investor.
Transactional funding is the process of getting a very short term loan to fund one deal with a follow-up closing to sell the property the same day or within 24 hours usually. A transactional lender will place the funds with the title company that are needed to close the first deal. Once that deal closes, you move on to the second deal, usually scheduled right behind it. The closing statement for that deal will reflect a payment to the transactional lender for the amount they loaned on the first deal plus their fee. This is usually a minimum of $2500, and can also be based on a percentage of the amount loaned. You get the balance and your profits.
Randy Bailiff
Dean Graziosi Investment and Life Coach
The housing and mortgage mess that began to unfold in 2007 created a lot of change in the lending and real estate transaction businesses. Title companies that used to do double closings and fund one deal with the proceeds of another are pretty much nowhere to be found now. However, there is a way to wholesale and flip properties with back-to-back closings without using your own money.
Of course, the first requirement is that you have a profitable wholesale flip deal set up. You must have the first property purchased at the right price, and a ready investor to buy it from you at a nice profit. The profit needs to be sufficient to cover a fee that will be required in order for you to use other people's money to get the first deal closed so that you can close the second sale to your investor.
Transactional funding is the process of getting a very short term loan to fund one deal with a follow-up closing to sell the property the same day or within 24 hours usually. A transactional lender will place the funds with the title company that are needed to close the first deal. Once that deal closes, you move on to the second deal, usually scheduled right behind it. The closing statement for that deal will reflect a payment to the transactional lender for the amount they loaned on the first deal plus their fee. This is usually a minimum of $2500, and can also be based on a percentage of the amount loaned. You get the balance and your profits.
Randy Bailiff
Dean Graziosi Investment and Life Coach