Funding Source: Details on Costal

Like Angela said, if anyone has closed a deal using this source, could you please put a note here? That would be helpful.

Sissy, if you catch this thread, have you had any deals successfully close using this source of funding? Thank you so much for sharing all that you find with us (you are an inspiring source of great information).

Rina

I spoke with Sis about this quite some time ago. She assured me he was on the up and up, but like you guys, I have no first hand knowledge or other sources to get more feedback from.

Until then, my recommendation is proceed with caution until you learn more.

Hopefully Sissy can give us an update now. It's always nice to hear of how deals went through, after closing.
Always good to do your own research, too, though.

Hello everyone
I have talked at length with the funding person who's name is Ron. Ryan just works for Ron sending him all the contact information.

Ron has told me that so many of Deans students have contacted him, talked at length and received the Proof of Funds letters. But none of them have actually went through with a deal for him to fund...a few of them came close and he was standing ready to fund the deal. He has the money and is ready.

BUT...I have also been telling everyone who contacts me that Ron is really busy and has been gone a lot because he is with a large pool of investors and they are going around the US buying up apartment complexes and Hotels.

I have came close to using the funding and had to bargain the house down so low that it became an assignment instead of a back to back closing. I will explain the difference below....

Also...I am letting everyone know that if you will go to
www.coastal-funding.com and talk to Eric Green he will also fund your deals. Eric funds deals all the time.
Eric charges a flat rate of $2500 and $595 paperwork fee for houses funded under $125K....so if your house funds for under $125K you will owe Eric a total of $3095.00 for the funding.

Now...when you use Coastal Funding you will have to have a title company that performs back to back closings cause these funding guys HAVE to have their money back on the same day that they fund your deal. They will not fund you unless you are with a title company that will perform a back to back closings.
Finding a title company that will perform back to back closings is really really hard.

Eric has a new title company that will perform back to back closings and they work in all 50 states too.

I have also found that Old School Title Company in Ohio will do back to back closings in all 50 states.

Now...when you use the funding and back to back closings it is no longer considered a assignment. Asignments are different. When doing an assignment you have a Option To Purchase contract and you also use the assignment contract to collect your assignment fee from your end buyer.

Using the back to back way... the end buyer never knows how much you are making on the deal. Using the assignment contract they know exactly how much you are making. That is the difference. Dean explains assignment perfectly in his BARM book. When using the assignment contract you will do better if you have a real estate attorney to handle your assignment fee. That is also what CBR does. He has a RE attorney working on his deals.

Coastal Funding will actually buy the house in your name on closing day. You will actually own the house for a few minutes or few hours until they close with your end buyer on the same day. (I always put in the contract that the end buyer pay all closing costs.)

The title company will give everyone their money according to the HUD 1 that you fill out instructing them how to divide the monies. On closing day you get your profit...the seller receives his/her money, coastal receives their money back plus the fee for "renting" you the money for one day and the end buyer gets their new house. So when you sell the house keep all these fees in mind when you quote your end buyer a price on the house.

That is the difference in assignments and back to back . These guys are standing by ready to help any of you close a deal. They are so professional, helpful and will help you keep all your paper work in order.
Sissy

It sounds good. Please fill us in on any more details when you or someone else is able to finish out a deal with them. I might make that a goal just to satisfy my own curiosity.
When I last spoke with Ryan, he said they don't work deals in WI, but that may have changed. I'll have to give him another call.

Rina

Also this gives you 2 wonderful team members for your investing team.

Thanks for the great update... that explains a lot.

I would suggest anyone going this route, on your first deal take the extra time to analyze all the costs, the ins and outs, everything. Make sure you understand every part of what is going on and all expenses as you proceed through the process.

After you've done one of these you'll know exactly what to expect. But on the first one don't leave anything to the imagination and make sure everything, including your profits, meet your expectations once it is all drafted out before you start signing.

Jay is right about learning all the different costs you need to keep in consideration. Always call Bob or Mark and ask them how much closings cost will be for your state and tell them what you are doing. They can let you know all costs involved before you quote a price on your house to your end buyer. You want to make sure everyone is covered and make sure you make the profit you want off the deal.

Sistreat - Thanks for the feedback
WOW! That was some post Thank you! I learned a lot and will probably have to read it over a few times before I understand it all throughly!
Also.... who are Bob/Mark? Mentors, I am guessing ...

I just figured out who Bob and Mark are!! I did say I had to re-read your post lots of info to take in!

Bob and Mark are at the title company called Old School Title. Eric now uses another title company that also does back to back closings in all 50 states.

Rina...call Eric Green at Coastal. They may fund in WI. Each funding source is different.
www.coastal-funding.com

Thanks, Sis.

Hi Sissy!

It seems that Ron has lowered his rate then... because back in September when I contacted him regarding a rehab property I was taking under contract at that time.... he told me that he will charge me 4.5 points plus the doc fee of $595. And that would have brought me to $6,000 for a 2 hour loan.... on a property that I was able to negotiate down to a sales price of $22,000 (around $85K ARV).

Therefore I did not take him up on his funding offer, it was just not feasible in this case, it was an extensive rehab, and with the cost of this closing loan and my assignment fee the deal would not have had enough spread for an incoming investor.

Conny

Hey guys,
I appreciate the post. Sissy asked me to give some input regarding our funding to clear up some things and let you know how it works. We have a very easy funding process. We fund all 50 states as long as you have a title company who will perform a proper back to back closing. If you don't have a title company we can provide you with a local one that we have closed with before or a highly recommended nationwide title company who will close your back to back closing in your area. Things have changed with the title company since the last I had talked to Sissy. We now use a Flagship title out of Tampa Bay Florida. They are extremely fast and friendly and will work with you and any obstacles to get the deal done. We have been extremely satisfied with their customer service and dealing with Coastal Funding's clients. You can call Rebecca over there and let her know that you are working with Coastal to fund your deals and they will get you all set up. Their number is 813-875-1200. Most of our information you can find on our web site. Check out our new Proof of Funds page. It self generates your proof of funds letter and will e-mail it to you instantly for your specific deal you are working on. If you have any questions feel free to contact me by e-mail or my direct line anytime. Sometimes I am easier to catch by e-mail. I will do my best to answer your questions or point you in the right direction.
Look forward to working with you.

Eric Green
Coastal Funding, LLC
direct 360-739-7549
toll free 800-262-6035
eric@coastal-funding.com
www.coastal-funding.com

Thanks Eric for the update. I am sure everyone will be making contact with you once they read this. You are offering a very valuable service for wholesalers.

sistreat gave me your info and im working on a deal with a south jersey investor and i wanna work it out with you and your company glad to see you on the dg family has anyone on here closed with you

I recently requested a proof of funds letter from Coastal funding to put in an offer on a REO. The deal didn't go through because the bank wouldn't accept an assignment. I thought maybe I should have used the double closing strategy at this point but chickened out because I wasn't sure how to proceed at this point. Should I have made an offer with some sort of escape clause? What if I put in my offer, it was accepted, but don't find my end buyer?
Any help on this would be greatly appreciated. I have so many properties that I am ready to pounce on, but want to make sure I have all my ducks in a row first. I am so close.....but don't want to screw up my first deal.

Jason Smith
San Diego

i mean im just giving you a page from cbr's book you got to find your buyers first then link them up with what there looking for its the best way to make deals happen and you wont get stuck with a property you cant afford to keep

Hey Jason
When you use Coastal and the title company you aren't doing assignments. It becomes a back to back closing. In the contract you should use the contingency "Subject To Lender Approval" that way if you do not find an end buyer that could be an escape clause for you.
Sissy

Eric charges a flat rate of $2500 and $595 paperwork fee for houses funded under $125K....so if your house funds for under $125K you will owe Eric a total of $3095.00 for the funding.

Hi sistreat. That sounds awsome. But i have a question. What if the funding is over 125k? Is the fee higher?

Amount:
Fee: Processing Fee:

$0-125K $2,500. flat fee $595.00
$125K-1 million 2 points $595.00
1 Mil to 2 Million 4 points $595.00
2 Mil to 50 Million 5 points $0

NOTE: (The fees above are quoted for single family residences only. All Bulk REO and commercial properties are a standard 5 points with no processing fee. Call to inquire about 50+ million dollar transactions).

B.C.
I tried to copy and paste the information but it looks like a mess the way I did it. LOL!
If you will go to www.coastal-funding.com and click on Funding Request you will see the above information in a column....all nice and straight.
Sissy

Thanks for the quick response sistreat
I was talking about SFR. I hope to be making a deal real soon.
Merry Christmas and happy holidays to all.

You are welcome and I am sure you will make a deal soon if you are being active and persistant. Merrry Christmas to you too.

thanks for the tip. I have been seeking a source for some time now. thanks again.

your fellow investor
dr_ george

Great info. I'm looking forward to my first double closing so I can use Caoastal and let everyone know how it went. What about funding for long term. Does anyone know how to get alternative funding for hold-and-rent properties? With my credit I'll NEVER qualify at a bank.

Stephen

great stuff, but 2 quick questions:

1) Lets say I find a great deal on a property first and I know its a winner, but don't have any buyers however because of the profit potential, I want to lock it up. I decide to use coastal Funding as proof that I can fund the property so that I can put it under contract with the bank. Will Coastal Funding allow me to put in a clause that gives me a grace period to find buyers? I understand the point of a simultaneous close, but what I understand from what I am reading is that all you need at the point of locking up the property with a bank is proof that you can fund the property. So, really at this point closing doesn't have to be right then. So did I read that correctly??

and

2) Lets say you find a great deal on a SFR, or anything for that matter, and you use the subject to lender's approval clause, to save your butt in case you don't find an end buyer, will you still owe Coastal Funding any fees if the deal does not go through? Like for example, I find an REO thats worth $125,000 and put it on contract for $45,000 using Coastal Funding to prove that I can fund the property, and my buyer has cold feet, or I don't have a buyer lined up. Since the deal did not go through, will I be liable for any fees incurred in the failed deal, such as the $2500 + $595 processing fee? Or does that fee only apply to when the deal goes through??

please let me know, I have a few properties that I am looking at and would like to use this method BUT, I don't want to put myself in a loosing situation. Thanks!

I found the answers on their website haha...thanks anyways!

hello everyone,
what kind of interest rates does
Coatal Funding charge?
Thanks