All Forum Posts by: Duane Ortega

Thank you Wayne and Copelon for your feedback.  I couldn't have said it better.

In a nutshell, yes, these POFs are legitimate and do work as long as you have a cash or hard money C end-buyer.  We fund all over the country, and these are accepted all over the country from experienced investors who actually close back-to-back transactions.

Greg,

From my own experience, it is not allowed.  Now you may say that this is a biased answer coming from me, a transactional lender, but don't take my word for it.  Ask the title companies or attorneys in New York who are investor friendly.  I fund nationwide and other than closing agents intentionally circumventing rules because they have a long-standing personal or business relationship with the B investor, the days where you can use C buyer's funds are long gone.

Hey Henry.  I provide transactional funding, and we are based out of NJ.  Please lookup my BP contact info and call the office, and we can answer all your questions.

Agree with Ted that is hard to find a conventional lender that will agree to quick flips.  There are some out there, but it's like a needle in a haystack.

Alternatively, you can find a cash buyer which will solve all your issues.

You don't need a contract to get POF. Just google proof of funds, and you will see POF being offered and some are free.

But, as Simon and others have said, it is not a guarantee of funding.  For example, if you are going the transactional funding route, you would still need to complete the funding request, submit the AB, BC contracts, ensure end buyer's funds are in escrow on the day of closing, sign all docs, ...  in order for the transactional lender to fund.

Bill Gulley,

Thanks for clarifying my points.  I am not an attorney.  Just paraphrasing what I learned from my interview with an attorney regarding this specific topic.

Attorney speaks about the difference between assigning a contract vs. being seen as brokering a real estate deal without a license.

I think there are differences between your concept of wholesaler's intent to buy... but I'm not the attorney.  I will be interested in your thoughts of my interview... (optionally, you may want to go to my website and click on "Press" and scroll down to find this interview, "Is Wholesaling Illegal?").

Yes, I agree, transactional funding is the clear cut way to perform these wholesale transactions.

Duane.

You don't need a license to assign a contract.  Key words there is assigning a contract vs. brokering a deal for real estate.

Don't need to be a broker either.

To be really safe, yes, own the property/get on title and resell it.  Multiple ways to do that, one of which is transactional funding.

You are correct.  Some have minimums of 2K and others have % minimums.  Google transactional funding to find the best transactional funding company for you. The transactionalfundingfl site that was mentioned may have outdated or incorrect info.  You want to find out for yourself.

Hello Lakeem.  This is Duane Ortega, and I am a transactional funder.

See >>> below

Does anyone have any experience using a Transactional lender for a double close? If so I have a few questions:

1. What were the fee's like ?

>>> Generally 1.75%-3% + processing fee of $395-$595

2. How much funding did you receive?

>>> There is no minimum funding amount with most lenders.  Maximum is usually in the millions.

3. Is there anything that isn't commonly discussed that someone using transactional funding should know?

>>> Google me, find my website, review FAQs or call and email me.

Thank you everyone for all the valuable feedback thus far :)

Maryann, did your legal team make any headway?

Thanks much,
Duane.