FUNDING QUESTION........PLEASE HELP.......

unfolds as you have presented, everything is NOT going according to plan. Without the "C" leg of the transaction, the transactional funding company will not provide the funds. There are some exceptions to this rule, but you have to be a seasoned investor to get that kind of exception.

How exactly do you expect them to get out of the transaction if they signed a contract? They have to be committed on paper before you can start a closing. Plus, TF companies won't fund anyone if there isn't a complete "chain of transactions." TF waits until the last second possible, and will only fund if everyone does what they're supposed to at the closing table. Just make sure your documents and due diligence protect you as much as possible to minimize any liability you may be worried about. Check with a great attorney in your state to review your docs and give his opinions. Make changes where needed to CYA better.

My "c" buyer is an investor who is not using TF. He might be using his own money.......I know he needs to still show POF, but what if he walks at the last minute and I've just gone through the closing with the seller-the seller is out the door with the money and buyer "c" decdes -at last minute-he has changed his mind. what then?

consider suing the "C" investor for performance plus damages.

if he canceled at the last minute... By the time you get to closing table you should already have a non-refundable deposit from c, which would cover your fee with TF company, so you wouldn't have a problem with TF.

This is how it works in the real world.

Transactional funder will not wire money for A to B closing until B to C is closed. You have to have a real buyer that has his funds in escrow up to 24 hours prior to the B to C closing. Think about it, the TF is NOT going to wire 1 red cent until the b to c is done.
How do you prevent some one from backing out? Make their earnest money non refundable the moment they sign the contract. Non assignable, no inspection, no subject to my wife's uncles dogs feeding time. Have them do all due diligence BEFORE they sign contracts. This separates the buyers that will back out from real buyers.

With that said, you need to have a property under contract that a buyer will take before you have to worry about any of this stuff. Go make offers, quit worrying about stuff that is not even an issue yet!!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

I called Insiders Financial and had this question... There needs to be confirmation of the contracts and stuff sent over to them before they send out the money. If you are doing a 1-3 day lending option from them, you will have already had the two sides (A & C) lined up and deals made. Then, you would follow through with funding from Insiders Financial.

sums it up!

Hi Mike,

I am a newbie to DG family and I have been following the answeres to the funding question. Insiders Cash has a 3 month 75% LTV funding program. So If I wanted to flip a home that I know will sell withing 60 to 120 days unless I have a buyer lined up I could not use the IC funding program? I guess I thought If I found a great deal and I could make a 30k profit I can not use the funding program to buy and market and sell? Do I need a different king of program? I wanted to use there 75% LTV program to purchase a property and sell it within 120 days pay them there fee and interes plus loan amount. Please let me know what would be the best way for me to do this?

You always make everything easy to understand. I was worried when I first read the question, but now you have put those fears to rest. Yes, I am making offers. Tammy

There is a contract between the sellers and myself already. and I will probably go with Insiders Cash. If I understand how this works....your basically going backwards at closing.

B and C do their closing first, then A and B. IS THAT RIGHT? Or am I totally wrong. Please clarify. I know a closing works....it's the borrowing OPM that I'm not use to.

I do appreciate the comments and time you take for them- THANK YOU, ERSIE

Actually Ersie1437, I think what happens is you get a deal (A to B) and Then you match your deal up with a cash buyer (B to C) and when you have all the contracts finalized, you submit a request for funds from InsidersCash. They will need your confirmation of the deals closing and fund for you the money you need to close (A to B). You will then close immediately with your buyer (B to C) and send the money borrowed, along with the 2% and participation fee, to InsidersCash and keep the profit. I hope this explains it for you.

Im sure there are a lot of good answers on this...... I didnt read them all.
I do a ( same day ) double closing.... and I close with my buyer first..... Find a title company that will do these deals. There are remedies for every well constructed deal ! Good Luck!

DG

Raven1234 has the right idea! That is exactly how to go about it... I haven't completed my first deal yet, being that I just bought the 30 day quick cash formula today, but I have been reading a lot of blogs and they are all pretty consistent with the different ways to close...

Btw, raven1234, I can't wait to get like you! I know after my first deal, I'm going to be super geeked!!! Nonstop from there... Well, here lol keep up the great work and much success to all!

I 4got to add to always get a NON-REFUNDABLE Deposit made out to YOU KNOW WHO . Then I call him.....Ask if he is coming to closing......... Tell him he will lose his deposit money...... have the title company call the sellers to extend the closing...... If I have reached that point yet! Slide sellers a few bucks to extend...... Find another buyer..... and if they do not show up..... SEE ABOVE! This is called making money on property that you neither buy or sell........ you are just stuck in the middle...... I hate when that happens !

I'm glad you posted this... I feel this is very important and I'm so glad you touched basis on this. I wondered what would happen if something like this would take place. At least you seem to be a problem solver and you definitely keep up the good work!