Dean's financing offer

When did this happen? I like to read more info on this!!!

yesterday at the seminar I attened

What’s transactional funding ??

Transactional funding is when you borrow money for one day to double close a deal. Transactional funding companies will !! Only !! Loan the money for 24 hours and when they know the buyer has wired his/her money to the escrow company.

What’s a double close ?

It’s when you close on the house from your seller and turn around an immediately sell it to your cash buyer with your fee attached. You only own it for a few minutes or a few hours.

Why would you have to do a double close ?? HHmmmm I’ll let some else expound on that one… can’t think of a good answer I just know you might want to.

hope this helps,
WALT

Thanks Walt! The more information the better. I appreciate your response!

Edna

A double closing is very important for wholesalers who are not purchasing property but rather selling their interest in the real estate.

Let's say that you find a great deal on a property that has a market value of $200k but you put it under contract for $160k. You then find a buyer who is willing to purchase it for $180k. You stand to make $20k on the transaction - but you do not have $160k to purchase the property. What do you do? You do a double close.

Camp I got the V @ 200K, UC @ 160, B @ 180, pocket money @ 20K when all the dust has settles part... It's this double closing part I'm not getting. Can you brake that down for me? Sorry, just one fry short of a happy meal here.

Thanks!

Double closing not only can help when you are wanting to increase the spread in your profit but also can be useful when dealing with Banks and Govt entities...
If you are buying a foreclosure, using a double closing to get the property to your buyer will be necessary, as the bank will not allow any time of assignment on the contract.

A double closing consists of you having contracts with the seller and the buyer for different prices with your profit being what is inbetween less your closing costs.
In the example that was provided by Camp, you would have two contracts for the agreed upon prices with the two parties. To help in this you may engage a transactional lender to provide a 24-72 hour loan. This loan would be there to satisfy your contract with the seller, while the buyers money will then repay the loan in 24+ hours.

Double closings have their place in investing. As with any investing strategy make sure the numbers work for your money rules and then move on forward.

In fact, I have not done a double close in nearly 10 months! I offer on properties within my sole purpose entity and if the contract can not be assigned I sell the entity.(Trust or LLC) It is a super clean single closing. Way easier than a double close. AND no worries about deed restrictions!! No money costs or costs from the second closing that may arise. I always practice full disclosure, so I don't "hide" what I am making from my buyer. It is a good deal with my fee or they don't take it.

Michael

You would also use a double close when you don't want your buyer or seller to know how much you are making on the deal.