All Forum Posts by: Duane Ortega

For a double close using transactional funding (meaning you are using your "own" funds for the AB transaction), yes, you would need another contract for the sale (BC).  It's a regular contract and check with your attorney as to what verbiage would be appropriate for your state as far as mentioning any contingencies such as the AB closing.

Best wishes,

Duane.

Hi Chelsea,

It can work, but C lender has to be able to wire their funds on the day of closing.  Most institutional lenders will not do this until they see a recorded deed.  Government programs have the same rules.  This is why most C financing with institutional or government programs don't usually work out with transactional funding which require closing on the same day.

Best wishes,

Duane.

Ryan Gillis, we have closing agent contacts in PA if you want them.  Please email us and ask for closing agents in PA.  Then you can speak with them regarding your specific situation.

And yes, you can always use transactional funding, but you can't avoid transfer taxes if you close on a property... someone has to pay for it. There are other ways that you can avail in order to pay transfer taxes only once. Talk to your REIA, research it here or ask investor friendly closing agents. This does also depend on your state laws. I know that PA recently became stricter with property conveyance relative to transfer taxes. To be safe, yes, double close with transactional funding and pay the transfer taxes. Notice I didn't say that you pay the taxes.

Ask title agent to be absolutely sure.  But that's not necessarily the end all be all... you can always negotiate for sellers and or buyers to pay for transfer taxes.

Hi Trevor,

In order to do a double closing, you need to get the property under contract (AB, where A is the seller and B is you).  Typically, sellers want a proof of funds and you can get this from transactional funders.  Next, you find a buyer for the property and execute a contract (BC, where B is you and C is the end buyer).  Next, you arrange for these 2 closings to occur on the same day.  The transactional funder and end buyer will wire their funds on the day of closing arranged then the closing agent closes AB and then BC transactions in sequential order.

I hope that helps clear things up a bit.  Please message me if you have any fur ther questions. 

Best wishes,

Duane

If you do decide to use transactional funding, it is better if you submit your offer as an LLC or other entity vs. your name. Most transactional funders only fund entities. Additionally, there is no advantage whether you offer as an entity or a personal name.

I would also recommend to let HUD know that this is not a cash offer. It will have a mortgage attached to it as some transactional funders do have you sign a mortgage. If you didn't do this initially, this can easily be corrected after the fact with an addendum to HUD.

@Eli Ferguson looking forward to working with you.

If you're not bound to Chattanooga, we have someone in Franklin, but I'm prohibited from posting it here.  Message me.

Hello Jamal,

I would recommend to do your own DD.  Check out the information on the websites, check out their videos, FAQs, blogs, check-out references or testimonials, message the testimonials people via FaceBook, and ask around in REIAs,  Google transactional funding and go down the list.  Check out their response times.  This is just some of the things you can do.

Most transactional funders only fund same-day back-to-back closings and don't do any extended transactional funding anymore.  Some offer hard-money as well.  Others also offer free Proof of Funds (POFs) in order to help the wholesalers get their foot in the door.

A legitimate transaction from transactional funding companies' point of view requires that you have a cash or hard-money C buyer in place and under contract.  Also, a good closing agent is needed who is investor-friendly.