Funding Source: Details on Costal

If you go to their wed sight you can get answers . scroll up to Coastal Eric's post and click on the link to their web sight. His post is from 12/22/08. You can also call and enquire.
hope that helps.

As far as my understanding, this company is a way around doing the typical assignment clauses...So would I get a house under contract still with the and/or assigns...find an end buyer...and then contact the company...Im def a little confused...Or would I contact the company first bout a place that I may wanna do an assignment on???

Marc -

Hey man, here is what I know. When dealing with certain parties such as banks, or government agencies, such as HUD, they will not let you do "assignment of contracts". They actually frown upon it, you might get lucky and find a bank that is willing to do that but chances aren't very high, but its not to say that it can't be done. Secondly, in an assignment of contract, the strategy is to use the end buyers money to pay for the property that you acquired and locked up with the seller. For example, you find home that you were able to lock up for $60,000 (but obviously you don't have the money) and sell your right to purchase the property to an end buyer for $75,000, meaning you make a profit of $15,000. So, the $75k from the buyer is what would be used to pay the seller for his property (usually done through a title company so that everyone gets paid). However, most banks won't do this kind of deal. From what I gather, their reason is that they don't want this property coming back to them, meaning they want to make sure they know who they are doing business with and if they are qualified to purchase the property. So they want to work directly with the people they are selling too.

Well that puts us in a bind. Now we can't use our end buyers money to pay for the property and at the same time make money for selling our rights to the property. So what do we do? Well thats where Coastal Funding comes in handing. According to their website, there are two types of transactions:

if:
A= Seller
B= Investor
C= End Buyer

then the two stand alone transactions are:

"A to B" and "B to C"

Coastal Funds, LLC funds the "A to B" transaction. This means that Coastal Funding will fund you the money and/or a "Proof of Funds" statement so that you can directly by the property from the bank, as if you were going to own it for yourself (and not wholesale it). So this is like a traditional transaction. Then working with their title company that does business nationwide (or your own, as long as it does business in your state, and simultaneous closings) you can do a simultaneous closing.

NOTE:
In a Simultaneous Closing you MUST have an END BUYER LINED UP. YOU MUST USE THE SAME TITLE COMPANY TO CLOSE BOTH DEALS. YOU MUST CLOSE ON THE SAME DAY!!!!!!!!

I can't stress that note enough. A simultaneous close is when you close with the bank (with the funds from Coastal Funds, LLC) and close with your end buyer at the price you decided to sell that same piece of property for, on the same day, with same title company.

So: that same $60,000 is purchased from a bank or agency with Coastal Funds funds, and on the same day that you purchased, you turn around and sell it to your end buyer for the price you agreed upon or $75,000. This is a simultaneous closing. This is good because now you don't have to disclose how much spread you made on the deal and you'll be able to make a good profit this way!

oh key note:
You must have an end buyer already lined up. Since you have to close on the same day, you better have a buyer ready or the deal will fall through. According to HUD, (if you are going to business with them) you have 45 days to close. So that should give you time to find a buyer if you don't already have one. So get cracking on building a buyers list my friend first!! Also be sure to include in your calculation of how much the property is worth less expenses with the fees associated with their "loan". To use them as lenders you pay 2500 flat fee plus 590 in processing fees for anything under 125k, so make sure that that is somewhere in your expenses equation for determining offer price.

wow sorry for the long post!! haha but hope that helps! Good Investing!

Knowing all these organisation and people will definately enhance all our progress especially newbies like me. Thanks a tone Sissy for the info.

I know that many people spoke to Eric at Coastal Funding and checked out the web site, the fees, the proof of funds letter etc..
Did anyone actually work with this company?
Any feedback would be great.
Thanks
Angela

We haven't heard back from anyone about their success (or lack of ) using Costal. I also wrote an email today to Rebecca at Flagship asking how does a back to back closing work for out of state properties? I haven't heard back yet.

Not that I don't understand how the closings will go down, I am just trying to understand it from a logistic standpoint since the closings will occur in Tampa, FL and my seller and owner are here with me in CA. I would want both of them having comfort by using a title co 3,000 miles away instead of down the street.

When I hear back form Rebecca I will chime in.

Neil

Hello very new here so excuse me if this sounds redundant to hear but I have a short sale house I am looking at, a 6bed 3ba home on Maui here, if I wanted to get funded say by coastal, what would be the first thing to do? Should I get my end buyer preapproved first, or should I lock up the deal with an offer first? Because wouldn't the lender of the house want everything to be preapproved so that they wouldn't be wasting there time? The short sale is asking $400,000 I know I could lock it up for $365,000 and the comps are around $480,000-$500,000. I know of someone I could sell this to as an end buyer..Is this a good deal, and what should be the first step..Thanks

If your buyer would pay 450 or so and could get financed then yeah.. it's a great deal.

You are sure the bank would accept 365?? Short sales are always subject to lender approval ie the seller doesnt really have the say.

Thanks for the response. I really am confused now. So the sellers lender needs to approve this if I am understanding this. So I really want to know what the first step is to do for this project followed by the next step. Would it be to lock in a price with the sellers lender?

Yes, the lender needs to approve it. In a normal sale, the lender gets paid off and the seller keeps the extra.

So for example, youy pay the seller 200K. THe bank is owed 150K so they get that. And that leaves 50K for the seller.

But what if the property will only sell for 100? The bank WONT be paid off in full. They would be "shorted" 50K. Thus, it's a short sale. The bank has to agree that they will take 50K less than they are owed and release the seller. It can be a slow process getting the bank to agree.

The first step is to get the seller to agree to the sales price. THen you go to work on the bank.

Thank you very much for that explanation. It really puts it in a better perspective for me. Being a newbie it's frustrating sometimes not being able to understand how these things work even after reading DG's BARM book a couple of times and taking notes on it so I am greatful that there are people like yourself who actually take the time out to help someone like myself. Once again thank you very much or as we say here in Hawaii...Mahalo.

Does Coastal funding requires full doc and do they do the credit check and debt to income ratio?

Found dthe answer to my questions on their website. Wow, if this turns out to be working, this is great!

Transactional Funding
For Back-to-Back Closing
Wholesale – Short Sales – REO’s – Bulk REO’s
Most Deals 2 points!
No LTV
No Appraisals
100% Funded
No Credit Checks
No Income Verification
No Up Front Fees
Free Downloads
We Fund The Closing Cost
* Click Here To Begin Filling Out The Flash Funding Request Form.
5 Star Customer Service
Same Day Set Up
Complete Short Sale System
We Provide Proof Of Funds
Same Day Funding
Your Preferred Title Company Or Ours
Easy Online Funding Request

Thanks for the explanation of how it all works. Great Info.

Sistreat... Can u go over examples of what the cost will look like for an assignment deal vs a simultaneous closing? Mainly, the fees, costs, etc and especially who typically pays what and why? .... Can u separate the "assignment closings," then breakdown the "simultaneous closings?" Thanks so much...

Oh, as an added bonus... Can u explain what contracts are needed for which deals (assignments, wholesaling, simultaneous, REO's, etc) Thanks ... Finally, I am done!!!

Hi Eric:

This is great info. I just started with Dean's book last week. I live here in Puyallup, WA. My goal is to become a full-time RE Investor. I have no prior experienced on being a RE Investor but this is great info and great to know that there is help out there to get me started. I am working on find my buyer's list. I have put together my RE Agent and found 3 good one that are specialized on Bank Owner, Short Sales, and Rehab. This is exciting to know that things are coming to reality soon. It is a matter of putting together my network and get started.

Thanks for the great info and am looking forward to doing business with you. Does Flagship Title in Tampa FL have a website. I loved being online a lot and would like to check out websites and sometimes need to meet people face to face through their websites before I talk to them.

Emeline.

I have yet to get feedback from anyone on this site who has worked with this company. However if you read back through this forum you will get contact info. for this company. In the meantime however here is a link to their site and you can check it out for yourself.

www.coastal-funding.com

WOW!!!!!!!!!!!!!!!!!!!!!
Wow and a wow and a wow!I read what i need to know when it comes down
to no money deals.I'm a sucker for thinking it was just so simple!
I still believe in talents over money (IF YOU DO NOT ASK-YOU WILL
NEVER KNOW)? Business is business---I like it that way...If what
you say about the funding is true(CASH ON HAND)it is priceless.
Thank-you again for showing me the cheat sheet.
When i find my better way...IT is yours!

Randy
2birds--------------1stone
MAKE YOUR ACTIONS COUNT!

This one said this:This one said that...(GO FIND YOUR DEAL)

Randy

Thank you all for your comments and information. It's nice to know about resources such as these and add to our toolbox.

Jeff

I spoke with a RE agent today and explained to him that I have a funding company that will help me fund A-B. He asked me, if I have a RE licensed? He said, that I may not be paid before I have to be a broker to get paid? I am a little confused when he asked me that question. Do I need to have a business licensed before I got started? Do I have to disclosed to these qualified buyers that I am doing double closing? I am new and I would like someone to help me clarified these questions.

Thanks, Emeline.

Hi Emeline
Hello and welcome to the board.
NO, NO and NO again you don't have to have a RE license to wholesale properties.
You ran into a realtor who needs to go back to RE school and take real estate 101 all over again. Most realtors are totally clueless as to how business people/investors work a deal.

You are an American consumer walking in to purchase a house that is for sale with funds to purchase using a standard Option to Purchase agreement. Since when does that require a RE license? If that were true everyone would need a license before buying a house.
When doing a fully funded back to back closing you will close in your name and the same day your end buyer that you found to sell that house to...will come in with his money to buy the same house at YOUR price. So each transaction is standing on it's own.

Do you have to disclose to the seller and buyer that you are doing a back to back close??? NO....but I do. I am always upfront on all of my dealing with everyone involved so the title company will close the deal. Disclosure is very important to the title company. BUT...when doing back to back closings you don't have to tell anyone what your profit is on the deal unless you want to.

Now quit listening to uninformed, uneducated realtors! Ask him to show you where it is illegal and you will totally quit investing and go get a realtors job! LOL!
He will never be able to show you.
Sissy

If I am understanding you correctly, the RE agent didn't understand what you were wanting to do. It is illegal to sell RE without a license UNLESS it is your property. The double closing means that Coastal Funding will finance your purchase of the property (you now own it) then you turn around and sell it to your end buyer. You don't have to be a broker (or have a license) to get paid in a situation like this. Also, you don't have to disclose to the end buyers that you are doing a double closing because it is basically two separate closings. Hope this clarifies things for you. If not, I'm sure that someone else on here can provide some great info.

-- Mark

Mark,

Reread what Sissy wrote. She explained this perfectly (which you also seem to be agreeing with for the most part). You do the (A = seller) to (B = you) purchase first by using Coastal. BUT....Coastal will not give you a penny UNTIL you provide them with proof that your end buyer(C) has either proof of cash or is pre-qualified. I myself have not used Coastal but do plan on using them.

And to answer your question, I believe you have to let your end buyer know you are doing a double closing because they have to provide the proof of cash and pre-qualifying letters to show to Coastal. And your end buyer knows that you are buying a property for LESS than you are selling it for in the first place (with the delta obviously covering Coastal's one day rent fee, any other fees such as if you used a realtor and of course your fee). You just don't have to show your hand as to how much you are making.....and the end buyer won't care, as far as he is concerned he is getting a great deal as well. Everybody wins!

Neil

Hello, my name is Rose, I recently got Deans book and I need some help please I'm not sure if this is where to go for help but I thought I'de give it a try. I read a couple of success stories and I'm very happy to see it working for so many people. My husband and I both work 8 to 6 jobs (just over broke)doing the same thing for a living, we have a 9 months old son, and a lot of bills. my son and I are not together because we can't afford day care and we can't afford one of us staying at home with him so we send him to N.Y with my grand mother. It is heart breaking to miss all the first that our first child has done. We've been working very hard for someone else and not getting much out it.I'm 24 he's 27 we're just starting with life. We don't have anything in savings cause there's nothing left to save at the beging, middle, or end of the month and we have horrible credit. We've been very blessed cause we know that there are some people out there worst off than we are, and I wish that i could lay them a hand.we have all the hope, and all the faith that my family and i will be financialy independent.we know that this work the only challenge is we don't know how to start. we realize that with faith persistance and hard work and some advice we too can have out own success stories. Thank you so much for reading this far if you cant help me please direct me to some one who can and that would be a great help. God bless. Rose ()>--&--

If any one can help please send me an email idrosesimon@**** Thank you

Hi Sissy:

Thanks for the great info! It really helps. I do like to disclose and be upfront with people. I asked the question because I called 8-9 companies that buy properties in cash. I left messages that I am doing a double closing. I haven't heard from any of them today yet. I will follow up another call tomorrow. I am getting closed to start making offered but I need to find qualified buyers first.
These forum helps me to put together the info that I needed to know and work my plan.

Have a great day!!!
Emeline.

Hi Sissy:

Thanks for the great info! It really helps. I do like to disclose and be upfront with people. I asked the question because I called 8-9 companies that buy properties in cash. I left messages that I am doing a double closing. I haven't heard from any of them today yet. I will follow up another call tomorrow. I am getting closed to start making offered but I need to find qualified buyers first.
These forum helps me to put together the info that I needed to know and work my plan.

Have a great day!!!
Emeline.

Hi Sissy:

Thanks for the great info! It really helps. I do like to disclose and be upfront with people. I asked the question because I called 8-9 companies that buy properties in cash. I left messages that I am doing a double closing. I haven't heard from any of them today yet. I will follow up another call tomorrow. I am getting closed to start making offered but I need to find qualified buyers first.
These forum helps me to put together the info that I needed to know and work my plan.

Have a great day!!!
Emeline.