Coastal Funding Question

Hi Bjackinemup,

There's always a fee to pay when double closing and the fee shud be included as part of your doing business.

I would suggest you try to wholesale the property by placing an ad on a site such as Craigslist. Also, concentrate on building your buyers list.

Try to find a cash buyer ASAP. I would even try finding a partner or cash buyer on this site.

My thoughts. Now take immediate action. If you have a great deal, you shouldn't have any trouble. Otherwise, ????

Leon J

1. Include the $2500 in your purchase price so your buyer covers the cost.
2. Double close using your buyers money to fund the a to b
3. Assign the contract if it is not an REO or short sale.
4. Find $7500 from a friend, relative or fellow investor and pay them a percentage of your net profit.

The reason the TF company has a minimum is they don't make any money funding such a low cost deal yet they have to do all the work the same as a $125,000 deal. There is a price point for them to do business, $2500!

Check out my TF guy below. Great POF funds and a flat 2% on the TF. I don't think they will fund $7500 however. I think they go as low $25,000. They make $500 on that deal. I'm not sure on their minimum, check them out! They are WAY better than the company you mentioned in every way!

Michael Mangham
MD Home Acquisitions LLC

Thanks! Good stuff! I already have a buyers list of about 8 serious buyers. Your suggestion about a partner is a good idea, and I think I'm going to look into that. I haven't started to market the property yet because I haven't submitted an offer, but the sellers are very motivated and I'm the only serious buyer as of now. This is a great deal and I don't think it'll be a problem to wholesale it. My only thing is that I didn't want to pay the $2,500 fee, but I guess I will have to pay something to anybody for using their money. SUCCESS, HERE I COME!!!

All great ideas. I think I am going to try and find a partner or friend and get the money from them, and give them a percentage of the profits. I would much rather pay a friend $1,000 for letting me borrow $7,500 than paying a company $2,500. I will also check out your TF lender. Thank you for the good info! SUCCESS, HERE I COME!!!

Interesting thread...Good Luck!

Thanks All!

Linda

I would make sure the numbers work and wrap the "funding cost" into your "double close". If you did your homework and the property works... that fee might not be so bad.

For example... you pick the property up for $7500 and it's worth $45k [ARV]... you flip it to a buyer for $20k.... you would still walk away with $10k [minus some small fees]..... ALL USING O.P.M.!

-Remember that you are using O.P.M., so the cost shouldn't be as much of a factor as the speed and momentum of your REI business.

-"Don't trip over a dollar to save a dime"... I know we are talking larger numbers than that, but if this deal is good... don't lose it because you are afraid of paying the fees for the cash..... do the deal, get your cash, and go grab that success you are after.

OR.... just assign it to one of your buyers for $5k-$10k and move to the next one.

Just my thoughts and good luck my friend!