- Rhonda Wilson I'm sorry but where is the rest of the instructions? Or am I suppose to get them from Matt Yates?
Kevin Capra 2 points is what you can count on for transactional funding. But I would be very surprised if another investor bought it with only $100k or so in room. I would advise any of my students against it in fact.
Matt Yates Sorry guys I have been processing loans. End of month. I am not a big typer so as disappointing as it may be, I'll give you the BRIEF, then direct you where to get DETAILS. Essentially our funding is used for the Investor that can find a great spread by making "CASH" offers. We provide the Proof of Funds, the Investor makes their cash offer, and immediately starts marketing for their exit. I also have Investors that have Buyers and they are hunting on their behalf knowing exactly what they want. Either way the exit buyer is either another investor (landlord investor) paying cash, or more of a Retail Buyer using financing. We close on the property using our cash, and turn around immediately to flip to exit. If the buyer is using cash, it's as quick as title can record. Shannon Peace can attest to this as she has closed deals for us, OR it can be extended term (30,60,90 days) depending on how long the retail buyers lender takes or if there are any deed restrictions. This double close allows the investor to be the seller and not have to show the exit an Option Contract and ask for a measly assignment fee. Visit us on FB, click the MORE tab, then GET FUNDING tab, and download our complete funding submission packet. There's your details. Now go visitwww.facebook.com/getfundrealestatefundingnow- Matt Yates We fund 100% of the Acquisition FYI. We range from 2 points to 50/50 Equity Splits depending on the transaction, dollar amount, and relationship. Do NOT waste your time hitting up other companies that promise <2%. I know EVERYONE in the industry and trust me...you get what you pay for...PLUS I already know we are the most well funded. How do you think I get easy leads
Shannon Peace Sorry guys..my phone is ready for thanksgiving! Lol
I do these all the time and can close in the whole state of California...my biz card is on my fb cover photo if you ever need anything else.
- Matt Yates MUST HAVE EXITS or the alternative IF the spread is there is to pay points upfront. Some skin in the game.
- Matt Yates We're trying to be flexible but its a fairly secure model this way and allows us to lend Nationally. We're not your local hard money lender. We DON'T want to take properties back just make $ on our money
Kenne Dinham Jr. Transactional Funding .. ABC Transactions. . Double Closings ..
Ahhhh, that reminds me. (and I hate to bring up past failures/lessons, but it seems to fit the discussion here).
Back in 2013, a colleague of mine said she had a client that was looking to sell a portfolio of timeshares and needed help finding a buyer. I spoke with the guy, and find out this is not a "few" timeshares but rather 4,400 timeshares . After about 7 or 8 months of NOTHINGNESS, I guess he assumed I wasn't going anywhere with the sale. I then contacted him to discuss BEING the buyer. With the asking price reduced from $5.3m to $3.7m, my new mission is to secure $370k (10%) and get funded for the remaining 90%.
I didn't know much about selling timeshares, especially not 4,000+ of them, so I sought an End-Buyer to take the full load. After a few weeks of the proper search, I FOUND A BUYER!!!
A Venezuelan team of investors have taken interest in the portfolio, and their broker tells me they are prepared to purchase the whole bunch. I tell him these are EASILY sold on the market at 10-15k each, and well---I was made an offer on those numbers. . $66,000,000 --- of course I accepted the offer. Now it became time for contract drafting and title searching, etc .. I called my Transactional Lender who said he could do the deal, and would only charge 1 pt.
My attorney was working very diligently for 2 weeks to get they documentation in order. My title company assured me that though the portfolio is in Florida, they can still close title from our New York offices.
Going back and forth with the Venezuelan buyers attorneys office, I discovered that the entire operation was fraud. There WAS no Venezuelan buyer. The so-called "Attorney" was a FRAUD . the Broker was a FRAUD .. And I was left looking like a TOTAL dumbass..
LESSON LEARNED :: Vet Your Buyers THOROUGHLY ~ Vet Your Sellers THOROUGHLY .. and don't be left looking like the only Dumbass
Rommel M. Lomboy Yes! The Turn-around is quick! Have your End Buyers in position once you've secure the A to B Contract! Create your Spread! And make your Money!!! Matt Yates, is on top of your Deal til Closing!- Matt Yates Kenne Dinham Jr. that SUCKS! Sorry to hear that. We were once taken for $1.25mm because we used a mom and pop title company. This is now ONE of the reasons we use a company with an E&O policy big enough to secure our transaction, as well as write our closing letters to read that the Escrow Officer will NOT release our funds until end buyers money hits Escrow. If it's a buyer using financing, we make them put up EMD of equal to or greater of what the Lender is requiring for the down payment. We also do our own independent evaluation of the deal. At the end of the day if we DO need to take the property back, it's a quick flip.
- Matt Yates Thanks Christopher Burton. I feel like it's been a LIFETIME since we've talked. BRING ME SOME DEALS BROTHA Jason Buzi we charge anywhere from 2% on a couple day deals to 50/50 equity splits depending on the relationship, the strength of the deal, etc. We are the leader in this type of funding because we treat our clients well, and are always fair priced. Like I said earlier, you really get what you pay for in this business. Just like an Attorney. You can hire a public defender or you can hire a specialist. We're the same way.
Mac McLean I've read about double closes before. awesome technique. I've heard some people do them same day!
Kris Ontiveros I like the idea of carrying back a portion of the profits. Especially if you can create huge six figure profits. What better way to minimize taxes (I think) and create long term cashflow. Plus I imagine that could make it easier for your end buyer to qualify/afford to purchase. Is anyone using this strategy?- Kenne Dinham Jr. HIDDEN SECRET ~ Double Closings are one the most effective ways to "invest in real estate with none of your own money and none of your own credit, and see profits instantly" , like most of the so-called "Guru's" will try to sell you on
- Jason Buzi Matt Yates and Kenne Dinham Jr. - where can people read more about these techniques? Any gurus or authors or trainers teaching this? Don't hear much about it.
- Matt Yates There's been a lot. We Teamed up with Brian Meara and Jeff Watson back in the day to provide their students TF when they released their Short Sale course. I am sure there others that teach the methods. It's a really simple method though. Tie up a property either on an Option or PSA giving you "Equitable Interests" in the home and right to resell. Market the heck out of it during your DD period. Find the exit, get them under contract, use that contract to open a pre-escrow, send ME the items on my TF packet checklist (A-B, B-C PSAs, HUD1 Statements, etc.), we wire in funds, wait for your exit to wire in theirs, we release the funds, and close A-B, turn around as quickly as we can and close B-C (US selling to the exit), and you get cut your check from closing, we get wired back our original investment plus our fee. DONE. REPEAT.
- Kenne Dinham Jr. To be honest, I cannot recall any specific source I tapped into for this knowledge. I, like most merely learned as I go. I studied several sources, both text and video. Both paid and free and easily Google searchable, I just cannot pinpoint the origins.
I appreciate this group, and others like it for the open forum aspect where a "newbie" can get advice and guidance from those that have tried and failed, tried and succeeded, and succeeded and coached.
Any advice I CAN share, I will always make it my best effort to do so.
Tuesday, November 25, 2014
nov 25
Guys, here's a freebie for everyone, and PAY ATTENTION please, as this information could be worth hundreds of thousands or even millions of dollars to you. I know it was to me. I used to only wholesale. So, if a property was worth $1.2M (excuse my Bay Area prices), and I got it in contract for $800K, I would be happy to walk away with $35K and thrilled with $50K. Nothing wrong with that, right? Well, maybe. Depends how you look at it. That's a $400K spread, and I was making give or take 10% of that. Now, if I were to buy the property outright, of course I wouldn't realize 100% of that spread, as there would be some costs, but surely I could realize most of it. Now, what if I could line up a buyer at little or no risk? Someone that was ready to buy the property from me once I closed, whether they were buying all cash or needed a loan? Or even multiple buyers, so I had a backup. Could I walk away with $250K or $300K, so my buyer gets a good deal, maybe $100K or $150K below market, but I don't have to leave hundreds of thousands of dollars on the table? This is called "double closing" (don't confuse with "simultaneous closing") and it can be done using something called "transactional funding". Now, how exactly does that work, Matt Yates, and how much does it cost? When can and should it be used?
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