OfflineHi:
I am sitting home today waiting to see if the storm we are supposed to be getting will pass or not. If it passes, I will go out and drive the neighborhoods looking for deals.
Alot has been written lately about this subject and I wanted to post what I know about it.
For those who have been doing this awhile, you probably don't need this or you have a source you work with. This is for those who are just getting started.
There has been alot written aboutr private money. It is said go find someone with a self directed IRA and while that is fine, how many new people actually know someone or how to find someone. You could buy a program like private money blueprint, which is great but for some, too expensive.
Then it is suggested to build a cash buyers list and that's a necessity if you wholesale and really is vital but if your just starting, you need to get going and get a deal done.
The best source of readily available private money is transactional funders.
What is a transactional funder? this is a private person or company that provides you money to buy and close on a real estate transaction. You get 100% of the purchase and closing costs to buy a property.
Now there seems to be different policies and procedures for each funder, such as fees, terms, etc, but the basics always seem to remain the same, which are that they will only fund the A-B portion of the transaction. There is also the B-C portion where the monies must come from the end buyer.
Now the end buyer can be another investor, where you will wholesale the deal to them, or a retail end buyer which is a buyer who intends on buying for the purpose of residing in the property.
You will get a POF letter from any of them. Now I belong to several investor clubs in South Florida and I have heard one or two horror stories.
The worst one was when a fellow investor went to a website, I don't know who but they entered their info, the properties info and printed out a POF letter.
They submitted the letter with their offer on a three unit property that went into bankruptcy. The person at the bankruptcy court overseeing the properties disposal called to verify the POF letter and they were told that oh, we never received a follow up call about the deal after that letter was dispatched from our website and since that person cannot follow our direction, that POF letter is no longer valid, we will not be providing funds for this deal, especially since the subject property is in the hands of the bankruptcy court.
You need to call the funder and discuss the deal and get them to fax or email either you or the seller, sellers agent, etc.
I have the name and contact info for a very reliable funder which I will now provide. I have not used them, since I use my own funds now, but I will use these guys in the future. I have heard great things about them.
They are Rachmas Capital at www.rachmascap.com. I have heard they will fund FHA deals as well.
They have a POF letter which you can preview on their website. You will notice that they plainly say, call or contact us for verification of the POF letter.
They will also do extended transactional funding, for 45 days I believe, but check them out.
For those just starting out, this is the way I recommend to get the money for your deals.
Fees will vary, always check to make sure they will not eat into your profit more than you can stomach. Some fees are outrageous, always verify.
Transactional Funding info and POF letter sounds very helpful. THX,
Kathy
Check out my journal:
http://www.deangraziosi.com/real-estate-forums/investing-journals/64065/...
My free website from Dean:
http://paradiseacquisitions.usapropertywholesale.com/
The Sky's the Limit!
seems like the website is currently down. will try again later
These are the guys I use and they back up your POF letters, no questions asked! I HAVE used these guys and they are the best in the business.
Go to http://www.mdtfcam.com follow directions and watch the presentation! Very educational.
Michael Mangham
MD Home Acquisitions LLC
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
Hopefully I will use them in the near future...another tool in the toolbox.
Barbara
Great info...be good to hear more about the info you started on Wholesaling and finding the FMV. Looking forward to it
I WILL NOT LOSE!!!!!
This is just one more tool for the tool box. Thank you for sharing.
Marilyn
Here are 2 other great sites for transactional lenders:
1. www.insiderscash.com
2. www.coastal-funding.com
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
thank you all
Here is another one. This is the least expensive I have seen. They also offer hard money loans.
http://www.tempofunding.com/
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
heard of 'besttransactionfunding'??
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
When you submit the funds you are looking for to fund a property, is it almost always going to get approved? And should you put a request in to more than one to make sure you can get approved by at least one?
Renae
The Browley Team
Working Towards Success!!
It would be interesting to hear more stories and/or specifics as to how well these lenders have worked for you guys. Other than providing the name of the lender and their web addresses, these posts are kinda' vague. Please post about your individual deals, how much money you had how much money the lender provided.
Rick Allison, Realtor
Amarillo, Texas USA
Find comps, private lenders and cash buyers nationwide: www.TheRealEstate.PRO
Foreclosure and pre-foreclosure search engine: http://tinyurl.com/b6w7h6o
The People Helping People Movement: www.greatEPXsite.NET
Transactional funding works great every time, some lenders have a limit(my lender's is $600,000) The ONLY way they fund your deal is if your buyer has his money in escrow usually the day before your double closing. If you have your buyers money in escrow ANY Transactional funder will do the deal.
Make sure you understand exactly what transactional funding really is. The questions asked indicate you don't know what it is or how it works.
Michael Mangham
MD Home Acquisitions LLC
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
Thank you for the feedback! I've done research on one of the transactional funding providers noted above by the Coaching Staff on www.insiderscash.com and they actually have two different methods of approving your deal. One that would be like the scenario you described for a double closing and you have 1-3 days approximatly to have the deal from B to C completed, and so I would imagine then that my Cash buyer would need to have proof of funds in escrow as you've described.
The other option is a more expensive option where you have to come up w/ 25% of the deal, and they will fund the rest with a maximum limit of 3 months to make that sale from B to C. In this case, my end buyer would not be found yet, so no escrow money would be set aside to seal the deal. I suppose that it will depend on the Transactional company we use, and I'll have to ask more of each that I might work with.
Thanks again Michael!
Renae
The Browley Team
Working Towards Success!!
Sounds like the company offers transactional funds and a "bridge loan. Two totally different types of loans. Transactional funding is called "flash cash" and funds your double closing type of deal, buyers money in escrow in advance. As you stated a bridge loan is much more costly and risky if you have no buyer in place to begin with. I suppose there are some reasons to use a bridge loan other than wholesaling however.
Michael Mangham
MD Home Acquisitions LLC
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
I see! Ok, thanks for the great info Michael. I appreciate it
The Browley Team
Working Towards Success!!
Private Financial Club is GREAT for Proof of Funds and they have fantastic service and the BEST pricing too. They also provide MILLIONS for Transactional Funding - FAST!
They can create a Proof of Funds in a Bank Account with YOUR Company Name!! And, they can Wire Millions for Proof of Funds on your behalf – DAILY - as much as you need!
http://www.privatefinancialclub.com
and
http://www.proof-of-funds-fast-pof.com
http://www.proofoffunds-bankguarantee-sblc.com
FYI - They also Monetize Bank Guarantees, MTN’s, Stocks, BONDS, & SBLC’s!
Yvonne Jones, CEO
Private Financial Club
http://www.privatefinancialclub.com
FAST CASH – We Wire Millions on your behalf – DAILY! Best Pricing for Proof of Funds, and Bank Guarantee! We Monetize Bank Guarantee & SBLC in any amount!
Could they please wire me a million today?
Thanks,
Michael Mangham
MD Home Acquisitions LLC
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
So let me get this right. I use one of these companies to fund the A to B end of the sale, so I wont have to use any of my own money, then the end buyer will fund the B to C end of the purchase. I guess my question is wouldnt I need to line up a buyer on the house before I submit for the Transitional Funding, or should I talk to the TF company, get an approval letter submit an offer and then look for a end buyer. How long do I have to find a buyer and what happens if I dont find a end buyer?
Before you even get transfunding it seems like you would already have a buyer for the property when you go to closing because the risk is high if you have the transactional funding but no buyer if they want the funds from the end buyer to be in escrow or on hold at the title office.
shawn
I've used many times funding through
www.NNAFunding.com
If you go there you can also obtain a proof of funds letter that is usually required to be delivered with your offer.
Divina
www.NationalNoteAssociation.com
so i am assuming it can only be done with cash buyers, and no mortgages.