OfflineI need to make the most money as soon as possible to get my debt under control so I'm thinking of Double-Closes and Assignments from pre-foreclosures. Bird-dogs don't seem to get paid much in comparison.
In a Double-close, a "dry close" would be ideal as I wouldn't need to bring any money to the table. But as I've read, not many title companies will do this anymore.
If I need to do a "wet close" using transactional funding, how do I pay closing costs, back mortgage payments and taxes owed, liens on the property, etc? These costs aren't included in the loan from Insiders Cash. Is there a way to get around these costs and get the money for closings from the cash buyer prior to their close in the deal with me? If so, how is that written in the contract with the cash buyer?
Thanks,
John
Every single deal cannot be done if you have NO money. If there are things like liens, back taxes, etc, this may not be a deal that you can do when you are starting out with no access to funds. Once you have built relationships with your buyers, you might be able to start working some things out with them fronting some money for those types of things.
Karen
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Karen is right.... Better to gain traction then skipping a step
Karen
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Ok, I want to clear things up:
When you go to close, everything that needs to be cleared from the title is done within the close... All back liens, taxes, etc are cleared at closing.
Transactional funding brings the funds to the A To B Transaction, and the HUD-1 will have everything for a clear title done. The B to C Transaction then is much simpler.
For transactional funding use...
BESTTRANSACTIONALFUNDING dot COM
It's also temporary funding, which means you can use it for up to 30 days, depending on the company. But, you have to have a buyer in place ready to go. They also charge fees for this service, too.
When you go to close, everything that needs to be cleared from the title is done within the close... All back liens, taxes, etc are cleared at closing.
Transactional funding brings the funds to the A To B Transaction, and the HUD-1 will have everything for a clear title done. The B to C Transaction then is much simpler.
For transactional funding use...
BESTTRANSACTIONALFUNDING dot COM
Anybody know of any title companies that allow for "Dry Closes" in the Florida market?
Are all of these extraneous costs considered "closing costs" or is it considered part of the purchase price?
get your buyer to pay some of these costs by speaking with them. To your question I don't know anyone in Florida to do this, but you can contact other investors or just get on the telly and call around to find out.
Also, no disrespect, and I understand being tapped out of money, but you did mention in one post that you spent a lot of money for education and could not spend more for the smaller things to get a deal done. I am a little baffled that either you don't want to spend one more penny, but if that is the case I would say rethink it, because the costs are minimal to what you say you spent on the education.
Again you could ask your buyer for some of the cost, you just have to find a way to get it done, even if small cost need to be put on a 0% interest credit card. Best wishes!
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
Then, I guess that eliminates the whole whoopla about "NO MONEY DOWN" or "NO MONEY NEEDED" or "NONE OF YOUR OWN MONEY". All those phrases are just pretty sounding words but empty promises and disappointing untruths. Because reality says...YOU NEED MONEY TO DO REAL ESTATE! I have a property right now (JULY 01, 2014) I can purchase for about 20,000-25,000, rehab with 58,000, get it re-appraised and see the value of the house appreciated by 800%, but don't have the initial $600 to acquire the Hard Money Loan that claims the NO MONEY DOWN slogan with no upfront or hidden fees.
Also be aware that Transactional Funding will only fund to business entities--not an individual, so you will need to have an LLC or a Company established to use TF.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
This is NOT what has been said AT ALL!!! I have done 20+ deals and never used one penny of my own money!!!
You cannot do EVERY KIND of deal with no money but can do Real Estate and make a LOT of $$$$ with NO MONEY!!!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
If I had a deal that would truly appraise for 800% more than I paid I would find $600!!! No hard money company has ever said it was no money out of pocket. You have to have the money in the bank for at least 6 months of interest payments. So you need a partner with cash in the bank. Go find one!! If your numbers are accurate, investors will come out of the woodwork for a deal like that.
OR you can try the types of deals that are actually no money down deals. You need a good buyers list and you will need to put a good investment property under contract at a price your buyers will pay and DONE DEAL. ZERO money out of pocket. I do these types of deals ALL the time!!
Good luck!
Michael
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
Wholesale a couple of deals to build some cash flow. If your worrying about doing a dry close is probably you want to make more than $10K on a deal, if your were to try and make $10K or less you can just assign the contract with no money out of pocket and really no headache to make some quick cash.
Reynold Orozco
Ray26CT... you are absolutely right about knowing when to do a double close vs an assignment. Double Closes are great for Short-Sale Properties and REO's, but it also can hide how much you're making.
I had an IE member try to wholesale a deal to me that I knew he was asking for $22k Assignment on a $40k property. The problem is, that was the ENTIRE MARGIN ON THE DEAL. I'd make $0 as an investor, it was a horrible deal with his profit included.
Now, if he had said, hey, I'll take $3k and be your full service guy, I'd be doing deals with him. Instead, he lost the deal because he was greedy (and he didn't have the $500 to put down on a HUD home). When it came back on the market, I actually put in an offer LOWER than his (which, we had been competing on offering on the same property, otherwise I'd give him a birddog fee) and got it accepted. Now I have it under contract for $38k (not the $44k he had it under contract for) and he's getting nothing, #1 because he offered too much for it in the first place, and didn't actually have a screaming deal, and #2 because he wanted more than it was initially listed for.
The lesson is, don't get greedy, make sure you're giving your investor a deal that they keep coming back to you for MORE.
Mark the Cash Flow Guy
I've run into the same scenarios, where wholesalers send me properties that they have under contract higher than what it's listed for on the mls!! then they add $25K as their profit! and surprise, surprise... they run out of time with their contract because they can't find a buyer... What are they thinking??!!!
@John: look for a private money lender or partner with another investor who can provide the funding, and you split the deal 50/50.
When you call title companies, try asking about 'wet closings' in a different/simpler way; remember that they are not investors and don't speak the investor's lingo.
Valerie
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I have spent some time researching Transactional Funder's, and I did find one that claims to allow an Individual to buy using their funding. Their name is Funding International LLC. I have not used them and I am not necessarily recommending them either. You will need to do some Due Diligence to see if they actually do any business.
I have did searches to see if FundingInternationalLLC.com is being used in actual Real Estate transactions and I have not located a website or person that has used them successfully, so beware, but there is a little chance that I missed something.
From what I see of Funding International LLC, is they seem more to focus more on getting subscriber's to buy their affiliate program for $395.00, then they want to fund actual Real Estate deals.