All Forum Posts by: Eric M.

http://www.managingreo.com/feature/?story_id=314

Eli is right, for 1-day transactional funding the risk to the B investor is minimal. Depending on the title company, it is likely that if the B-C falls apart and does not close same day then the A-B transaction will not actually be completed. The final disbursement of funds will be cancelled and the whole thing will then be negated.
No fees would be owed if the deal falls apart.

For a 30 day Transactional Deal (which I call a Seasoning Loan) it would be somewhat different and depending on the lender there might be some risk to the B investor.

There are a few good transactional lenders on BP. Like me!! Compare costs.

Good Luck,
Eric

I would say that most of the time the lender for your C buyer will not be Hard Money. But either way, you "justify" the value by an apprasial and you explain any rehab work you did or that you simply got a great deal on your purchase. You purchased wholesale and you sold retail.

BTW, some transactional lenders charge less that 2% with none of those extra pesky fees and minimums!

Never pay 3%!

Plenty of lenders and title companies are ok with back to back closings. And there are transactional lenders like me who will provide funding.
These are not Double closings which were simultaneous. THese are 2 separate closings on the same day. You have to have the end buyer all lined up in advance.
These are A-B and B-C transactions where you are the B.

Andrew,

I would:
Find a Realtor who can answer many questions and give access to MLS.

Forget the Assessed Value.

Take the listing photos with a big grain of salt. You cannot assess rehab costs from photos.

It is so frustrating because anyone who will take the time to scam someone in a deal will spend the time to figure out how to manipulate any system we create.

With my idea, it would be pretty easy for 2 scammers or 1 scammer with 2 identities to falsely report several successful deals done with each other to give the appearance of legitimacy.

This is a tough thing.

Maybe you just let people air their laundry and take responsibility for what they have to say as Rich said.

I love the idea in general. Very interesting that Josh hasn't commented.

If it is thread-style with discussion it definitely would degenerate into name calling, etc. And the whole PM thing just defeats the purpose of sharing knowledge and info.

But obviously many sites operates a "feedback" or reputation style rating system and it could be done here.

Maybe there could be a Deals Done forum in which people can enter general details of any deal done with a BP member and simply rate the experience 1-5 stars or whatever. The other party has a chance to rebut and rate also and that is that. More details could always be received by PM but the basic gist would be public.

So under your name when you post, it would say:
5 Deals Done with BP members
4.20 Average Rating

Just curious, has anyone in their life ever seen or read a respected news source that featured or interviewed a wealthy person who said that the way they made their money was they bought a real estate course from a guru?

That seemed simple and was my original idea but my attorney feels that is too aggressive. Although he can't say it is illegal, he feels it is trying to circumvent the borrowers rights under the FC laws.
Maybe time for a new attorney? :-)