Transactional funding + B-C...

[Herm M.]

How do you make sure everything goes smoothly in this part of a flip? Since these bridge lenders usually only lend for 48 hours, how do we line things up?

Let's say that today I have a contract/approval from the short sale lender and have 30 days to close. So on the 30th day, that's when I'm going to have the transactional lender send the hard money. So on the 31st day, I need C buyer's side to bring their money to the table.

What's the best way to do this? Here's my big question:

- The title report is going to show A as the homeowner, until B records on title on the 30th day (or 31st).

- The C buyer has shown their lender a B-C purchase contract, showing that they're buying from B.

- Obviously, C's lender will not fund until B is on title.

Do we need to inform C's lender that we want "B buyer's name on title to be the LAST condition for this transaction. Clear all the other conditions during the first 30 days (appraisal, etc.), and we want you to be ready to fund as soon as B goes on title on day 30/31."

[James Ward]

You sure did pack some great questions into this post. So, I will try to answer all of them as best I can.

1) How to make things go smoothly? It is a juggling act. Make sure to keep in constant contact with everyone involed, especially the Title company. They (Title) can help you more than you will ever know. So keep them VERY happy.
2) How to line things up? Schedule everything with the Title company and make sure everyone is on the same page. Be prepared to be able to answer any questions or be prepared to solve problems. Or at least know how to find a person that can.
3) Why are you waiting for the last day to do anything? That is just asking for problems. Get them closed ASAP. This way, when something comes up, you have time.
4) How to show what is going to happen? This is really where you, Title, and everyone else involved MUST be on the same page. To get the End Buyers Lender to understand, they must be told exactly what is happening and when. Talk to your Title company and set something up with them about how they convey what all is happening.

So, to boil everything down. Have a GREAT team of professionals that you work with. Make sure everyone is on the same page and everyone can convey what is going to happen. If everyone understands what is happening, this will make things move easier. (This does not guarantee that things will always close, but it will assist in your success!)