All Forum Posts by: Dwayne Gilbert

Nice. You totally get a nice chunk of prayer and positive karma coming your way @Jesse LeBlanc. I will take that to heart and listen. Let them do what they do, I'll stay in my lane. For what its worth I did send an email to the closing agent right after responding to your first message asking about that line and how to use it.

@Max T. I agree, but this person can buy, at least he meets the necessary credit score, debt to income ratio, job history, and everything else needed to qualify for a loan. He has been pre-approved and I've seen the paperwork. 

The problem is that most lending organizations intend to sell the note to the secondary market the second it's originated. Because Fannie and Freddie are the 2 biggest buyers and they have a 6 month seasoning period so the only organizations that might potentially offer the loan allowing me to double close or assign or anything of the sort are portfolio and direct loan lenders.

So today I will be sitting with my buyer and calling as many as those types of loan companies we can find until we meet one that is able to help us. I also have some messages out to the lady who will be doing the closing and is also a real estate lawyer. 

I had a great idea from an awesome gentleman on here named David which is to sell him the option for 2k now and the rest of the money as a lien or whatever at closing. I need some more information about how to do that exactly. I haven't taken the option agreement to the court house to file it and I don't know how essential that is in order for the option to be paid off at closing.

I cannot buy the property because my credit is total ****. Sadly I spent my life making less than good financial decisions. For what it is worth I only have 2k on my credit yet to get it completely cleared off and that will be accomplished within the next few weeks. I may have to wait until I close this deal to do it, however, I am genuinely working toward improving my credit so I can just buy when needed.

Hard money is an option and then just hold it until the time is up but that gets very pricey very fast for each monthly payment until paid back.

I have also been looking into the promissory note idea. I am not exactly positive how to implement that method but I am certainly going to be trying to figure it out. 

I appreciate all the help from all of you. It isn't that I am a total idiot about all this, I simply haven't done enough deals to have the necessary experience. This is also something that those awesome "GURUS" don't tell you in their books, videos, and programs, and it is that their are so many different moving pieces in a deal and especially in Pennsylvania it gets more complex as they will charge you taxes for both sales, even if it is an assigned contract. 

I wish I had a cash buyer, I know that is the way it works best for a wholesale deal, but I don't have an investor with cash who wants to buy this, it's all first time home buyers. I discovered and learned all I could about the option agreement and selling the option, so I went and spent god knows how much time doing my best to write a thorough contract that is legal and hopefully good enough so the lender won't have any issues with the contract itself.

I cannot express my gratitude enough for all the advice and help. It's a life saver to have a community like this to help with these sort of things. OOOOH, those gurus also never mention anything about potential issues like this. That is exactly the reason why the seasoning clauses have been put in place and it makes me sad to think of these people out here in pennsylvania grinding like hell to get a deal, and once they do they realize at closing that they have to pay for the closing, twice. Talk about a heart breaking situation, get all the way to closing and then realize your leaving with $50 in the end.

Keep the ideas coming folks. I will be getting with my buyer within the next 2 to 4 hours to find a way to get him a loan, and once my seller is off work and home around 5:30 I intend to be able to call him and her with a solution, and if that solution includes a promissory note or a new contract or a billy goat that can sing yankee doodle, I need to and will make it happen today yet.

Hey @Will Barnard, I totally understand that wholesaling is typically done to a cash buyer however, that wasn't an available option for this deal. The closest buyer I was able to locate would have used a conventional loan and possibly made things easier, but I don't know. 

I know that getting paid on the side would be operating as a broker and I have no intention of operating in such a manner, nor have I advertised the property in any manner that would label me as performing as an unlicensed realtor.

I stated, or at least the communication intended, was that the BUYER insists on paying what we originally agreed upon which would be a significant profit for me. The SELLER or current owner of the home who could not use a realtor, has absolutely no knowledge, skill, or understanding of the process of selling a house seems disturbed by me earning to much of a profit.

The paperwork is at the lawyers office for pre-foreclosure to begin. They have no other options other than lose everything. It is a friend of a friend who had heard of me possibly being able to help. I do not do anything real estate related on a regular basis. Did go through a period in the past in which I was doing it and I still hold a lease option so I would be more than happy to line a buyer up preferably with cash. 

This property is in great condition. It could use some paint on the exterior porch and some of the exterior door frames. One garage door needs a window replaces and the tracks for the garage door openers need some work but otherwise the house is in great shape. 

I had no idea how hot my local market was so we agreed to a certain price in which I figured I was going to make way less than I potentially could here. Once I found people interested and recognized what the market was like I added 20k to the agreement for the current owner. Plus I am moving their stuff for them because it needs to go and other things to help as much as possible. However, maybe it is just me or I am perceiving things wrong, but he kind of wants me to do it all for free.

I currently own a LLC and have no problem with that strategy at all. I have mentioned to him about giving him majority ownership in that LLC and then buying it that way then either buy the LLC or the LLC will sell it to him for the original price minus my cut or whatever but I am not positive about how to legally do that or anything.

I am really a green horn who had an opportunity to help other people while hopefully earn a bit of money for it. I was extremely blessed and lucky that everything has gone almost perfectly, but as perfectly as one could hope, other than finding a company to give this man a loan without needing the purchase agreement to be directly between him and the person whose name is on the deed currently.

I am also all for the parties paying me on the side after the agreement, just not positive how to do that as I trust the buyer more than the seller. They don't seem happy with me earning anything at all, but at the same time want and need me to get this finished. Again, I am all for any solution. I want to get paid, but I am more than willing to wait if needed, take it on the side at the end, or whatever else is necessary as long as it's legal and gets me paid. Just as important, so that it helps the seller and the buyer both are happy in the end.

the end buyer needs the money to buy my option from the loan money and doesn't have it up front. How do I go about doing that without just trusting the seller will give it to me or whatever? 

Have a contract with a seller for a house in good shape but discounted because of their personal reasons. Have a buyer, qualified to purchase, ready to pull the trigger immediately. Have a closing agent ready and willing to not only come to us to do the close but fully knowledgeable in doing double closes etc..... 

CANT FIND THE DAMN MONEY!!

The buyer is qualified and has the credit, but banks will no longer make loans it seems without my name being on the deed for the seasoning period, I mean is the government buying every single loan now days? Where did all the direct and portfolio lenders go? Anyway, I digress. 

So buyer and seller are 100% aware of each other and the entire deal and my profit. I have no problems with any of that and have been 100% honest, up front, and clear from the beginning. 

So, how can I, or what can I do in order to give them both the contract with one another, have them sign it, and I still get paid without looking like I am operating as a broker?

I did already try the option agreement, but again, I cannot assign it to a loan because of the clauses. Now, I haven't actually filed the memorandum at the court house but I still would not be on the deed for him to get the financing, and my attorney said that I am better off not doing that as it could appear to be operating as a broker.

HELP ME PLEASE!!

I want to get paid and my peeps want this done.

Dwayne

After doing more research I have discovered that the reason banks will not allow this type of financing is because most major financing institutions sell their notes to the secondary market. Fannie and Freddie require seasoning on the deed for them to purchase it. 

One solution is for me to find a company that keeps the note in house so that stipulation doesn't matter to them. If I had more experience I would have more solutions, but that's the game. I can bet you this, after this deal and the education I have acquired from it I will be able to rinse and repeat the same situations when they arise again.

I would purchase myself but do not have the funds or credit to acquire lending for myself. I have no issue giving up profits to make deals work. The profit, at least for me, is almost always larger than it would be for much harder work so it seems like a fair trade. I will have to calculate the cost of getting a hard money loan. 

Off the top of my head at just 2% or 3% which is a quick number for the monthly payments of some of the hard money I've seen, that would mean I have to pay around 2 to 3k a month to keep the property plus all other expenses. Even at 1% on the 125,000 plus any additional costs it would cost me 1250 a month. 

I am working on getting to the point in which that isn't an issue for me, however, right now I am totally making my way on grit, grind, and the willingness to learn and grow. 

Hey Jesse,

Thanks for reaching out and trying to help. I have an agent who can and will do the close. I also have decided because of legal advice to do a purchase and sale agreement and do the double close instead of assign etc...

I do understand that most banks have what they call slippage clauses or otherwise I believe called seasoning clauses. I understand why, and even though it complicates things for those of us who strive to stay way above board and do things properly. \

My buyer is qualified, and I chose him for a number of factors and i have seen his proof of credit score and pre-approval etc.... What I am searching for is a finance company or organization or whatever that will allow me to do the double close and I am more than willing to talk to an agent and explain what I am doing and whatever else it takes for them to clarify what they need to about me and the deal including the buyer telling them what he knows about the deal and such.

I am even open to another idea. Limited partnership and he buys me out. LLC, a goat farm. Who knows! I am willing to do whatever work is necessary to make this work for my home owner, myself, and the buyer.

I have a property in good condition and an option to purchase the property at 125k. I also have a purchase agreement with a buyer willing to pay 152. I have even managed to hunt down a closing agent, harder than I ever thought, who can and will do a double close.

What I don't have is a company or organization that is willing to give the buyer a mortgage without my name on the deed or anything of the sort. They either have no clue what I am talking about with the wholesaling idea, or the bank itself has a slippage clause. I do know that FHA has a seasoning period, no problem. We can get a usda loan which to my understanding does not have the same conditions.

I greatly appreciate any and all help you beautiful people can offer me. I'm needing financing asap and having trouble finding the solution.

Thanks,

Dwayne