OfflineHas anyone ever used transactional funding to do a double close?
If so, what I'd like to know is how does closing cost effect your profit... How do you calculate the deal so you don't lose money. ..For instance:
Let's say I got a property under contract for $100,000
Buyer is willing to pay $120,000
How will closing cost effect my profit when doing a double close using Transactional funding...
I just want to fully understand howthis works before using it...
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Donald Myers
Yes you do need to consider your fees when doing a double closing
Closing costs & transactional funding fees.
Ive always considered 3% of sale amount for closing
3% of 120k = 3,600
Then transactional funding fees can vary depending on who is lending to you.
Insiders cash for example will charge 3,500 on a 100k purchase
so with closing at 3,600 and lending 3,500 = 7,100
20k - 7.1k = profit of 12,900
Make sense?
I wanna thank everyone for your comments... I completely get it and understand it now. Plus I spoke to someone from the success academy and he told me they teach their students to at least have a 10,000 profit margin, that way you'll still make a profit after expenses...Harold thanks for the example and dmyers thanks for the info...Ready to hit the ground running...
God bless
No problem
Hope that helped
And yep, I'll agree with the other trainers on the success academy.
Easy way to do it is give your self at least a 10k margin to cover your fees and profit.
Now of course 10k may not be enough if you are dealing with 200k+ purchase amounts, so depending on the amount you buy & sell for, your margin will need to Vary.
cost is 1.75% for TF
read content and see for yourself
http://besttransactionfunding.com/index.php?ref=reinvestor42
Without TF you sometimes cant do the deal- use ONLY when the profit(spread is large enough to cover the cost)
You will NOT need TF on ALOT of deals, but you WILL need the POF letters.
ENjoy the Free stuff!
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
Hey Vincent,
here in Kentucky we can dry close, meaning the second deal pays for the first one. The original seller is told, that his check will be ready in a couple of hours. The closings have to be in an hour of each other.
Check with your closing attorney if he can do that before you spend extra money.
Thomas
Interesting a dry closing in the state of Kentucky. Good work!
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