OfflineThis bit of info comes from http://fastinvestormoney.com/fee-schedule/ :
"For years, real estate entrepreneurs enjoyed the benefits of simultaneous closings, where investor “B” had a “quick flip” deal of some sort, and could simply close both transactions (A-to-B and B-to-C) back-to-back with “C’s” money flowing through to fund the entire transaction. (i.e. a “dry closing”)"...."While this practice is not illegal, due to intense scrutiny from State and Federal regulators title companies are no longer allowing simultaneous closings. They’re now requiring that the first closing “stand alone” with Investor “B” bringing their own funds to the closing table. (i.e. a “wet” closing”)"
First off, is this hogwash or true? Because if it's true, I'm not making but $27.12 for flipping paper on a particular property I'm looking at, if I was to use this company. I was led to believe on this site that we do what is explained previously as a "dry closing," and everybody is happy.
And, please, don't tell me I need to look at properties that are 50% or less off ARV, because that an't gonna happen in my market easily. I mean, I'm sure they are out there, but Omaha, NE had it's RE downturn back in March, from what I see on every valuation graph. Now, prices are climbing up, financing is good and homes are getting sold regularly for asking price or more. I feel I missed the boat for my area, but there are still parts in the US that I can invest in...I just need a little bit of money to get started. However, I need money yesterday, and not because my power suit is a year old! I got some financial burdens, and actions I need to take financially, just to survive. So, I'm looking at any property that I can lockup just to get a grand or two out of. I assign to survive! I have two properties in mind that I am purchasing for basically 20k off ARV, pricing them at 5k-10k lower than ARV, advertising them heavily, and hoping to get a closing before the assignment expires. Which, I hope to extend to 30 days. I realize the sort of profit I stand to make from these (not much), but I need money now. In fact, if I can't come up with the EM, I can't do nothing if nobody likes my EM being paid at closing on the contract clauses.
And another thing, I posted some ghost ad's on CL some days ago. Three ads were posted; one of a house in an older part of town priced well, one in a newer (read: yuppier) part of town priced well, and another in some small town 30 miles away from a WalMart, which was priced appropriate for the area (read: lower than city pricing). I have had ten responses to date for that property in the small town, and none of mention for the others. The small town one is only getting responses because it's the cheapest! And, BTW, these are the ghost ad's looking for cash buyers.
I realize my simple question turned into the equivalent of War and Peace! Please give me some advice...
no time..wife/doctor )
your deals dont sound good enough......5-10k bellow arv sounds like average selling price....do these properties need work?? You need to give a better deal and cut your assighnment fee...also look for cash buyers first to find what they are looking for dont waste time on properties that they dont want in places that they dont want...
"dump the clutch and nail the throttle"
"Just do it, Get it Done!"
--Matt Larson
you are looking for investor buyers and they want atleast 30% equity after repairs are completed....5-10k is not realy any equity...unless thats 30%....................price lower and try bandit signs in buisy intersections advertising the house
"dump the clutch and nail the throttle"
"Just do it, Get it Done!"
--Matt Larson
ok I guess I have a little more than an hour til my wife's Dr.'s appt... I'm kind of in the same boat, I have a house locked up (I did already pay EM), I am now on the 1st day of a 15 day ext. I was just told last week that closing co. that i have (was given no choice in choosing the closing co)doesn't do double closings/assignments, my RE atty told me that he did these all the time ...on our 1st phone conversation..then in person that was a totally different story also.
I have since then (last week) found a far better (and cheaper) RE atty. but haven't had a chance yet this week to get with her.
I'm not meaning to be negative, I just feel like i missed the memo on this, btw house is appraised as is @ 51k, I got it for 12.8k. I want to 1st wholesale it, 2nd buy/fix/flip...what I DON'T want to do is lose it..(my mind or the house lol)
Almost forgot my most important Q, This property is a hud so i was just thinking that it just applied to hud props, is this all properties now/ states?
my profile isn't filled out either but I'm in nw ohio
Sincerely,
Bob, Brenda, and Caleb
your deal sounds like a good deal, but you will need to come up with some funds to close because it's a Hud property, and Hud properties usually pick their own title companies, otherwise you have to pay extra. Also, you cannot wholesale Hud properties; so you will need to buy, fix, and flip; or do a double closing, and ask your investor buyer for a fee upfront that will include your closing costs and your transactional fee. (you will need to find a transactional funding company for the double closing).
Why do you not fill out your profile?
Listening, Learning, and Progressing every day,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
this is what a Transactional funding company is saying, because that is how they get their money! with wet closings! they don't get paid with dry closings! ... I would call every title company in my area and ask if they can do simultaneous closings!
Listening, Learning, and Progressing every day,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
That company has made a blatantly false statement. They are just trying to sell their product!
I am in Colorado so things may be different where you are. I just did a simultaneous closing on an REO 4 weeks ago. I have done several this year, using MY investor friendly title company to do the b to c closing. The bank chooses their title company for the a to b. They never know where my money is coming from!! The closing of the b to c takes place first. My buyer signs off that he knows his funds will cover the a to b and it gets done. The bank and their title company know nothing! They get paid and that's it!
The key to doing this is having the investor friendly title company and not telling the bank, realtor or their title company anything other than "I am buying with cash and will close on the date of your choosing"! Oh yeah. one other little detail, you must have a real cash buyer that will actually close and fund the b to c!!
One last word on a post made above concerning your assignment fee. NEVER and I mean NEVER set a minimum amount to make on a deal. Try to get the most of course but if it comes down to it, make what you can. Like you said if you can make $2000 that will be OK. I have done an assignment deal for $700. It was a heck of a lot better than nothing. Sure, we would all like to make $50,000 on every deal (ain't gonna happen)The more deals you do the better! What you learn and the people meet can sometimes be more valuable than the net profit on a deal!!
So I made $700 and at the same time I was working a deal I made $20,000 on. . Just don't spend a lot of TIME working the $700 deal. The one I did I had about an hour and a half into it. That is $466 an hour. Anyone that says turn that down is crazy if you ask me!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Did you try to tell them that you want to sign papers at your title company? Stephanie Davis did a video & posted on Youtube on how to do this with bank reo properties.
I have since then (last week) found a far better (and cheaper) RE atty. but haven't had a chance yet this week to get with her.
I'm not meaning to be negative, I just feel like i missed the memo on this, btw house is appraised as is @ 51k, I got it for 12.8k. I want to 1st wholesale it, 2nd buy/fix/flip...what I DON'T want to do is lose it..(my mind or the house lol)
Almost forgot my most important Q, This property is a hud so i was just thinking that it just applied to hud props, is this all properties now/ states?
my profile isn't filled out either but I'm in nw ohio
Sincerely,
Bob, Brenda, and Caleb
do you have the link to Stephanie's youtube video?
thanks,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Thank you all for the responses. I had a small feeling that what this company was saying was not correct.
I totally agree to never set a minimum assignment fee. Right now, the properties I'm dealing with are listed in the MLS, with a realtor, the whole nine. I know it's not the optimal way to do things, but once I get some money to play around with, this is what I gotta do. If I get $20 and a cup of coffee out of assigning a house...well...it's $20 more than what I had.
However, I have been breaking the cardinal rule: when the realtors ask what I'm going to do with the property, I say that "I'm just going to assign it over, I don't care what it looks like, just as long as it's not a burn-out/copper stripped/mold damaged/insect infested." From what I've been reading the past few days from DG, that's a big no-no. So...I will have to depend on the psychological fact that most people don't listen, are inviolved in themselves, and have forgotten that I said I just am assigning over the property.
What has been happening when I've been low-balling these realtors, some say "hmmph, that ain't even close to covering the (amount of) mortgage!" And, so far, I've just been walking away because they won't do my offer. I think now I will counter with matching or coming slightly above the mortgage amount, as long as that amount still makes it easy to sell the home after my assignment fee, whatever that is.
Anyone got any comment on these ghost ad's I've been posting?
Thanks again for the insight; I knew I could count on you guys to get the real deal.
Jason