All Forum Posts by: Jesse LeBlanc

Hey- I'm wondering if wholesales have a need for transactional lending (for example to cover EMD/earnest money deposit). Are there times when capital is tied up in deals but another deal falls through because you have no cash left? Is transactional lending something that wholesalers need? Any WSs out there feel they could use this?

Hey there Andrew, if you ever have a deal that’s more than you have, let me know! More than happy to step in and help if you get a larger deal. I don’t lend on EMD though.

0 Votes

Quote from @Todd Hoffman:

For those who provide transactional/same-day loans (including @Jesse LeBlanc and @Jay Hinrichs), do you require a loan title insurance policy, and typically what LTC (percentage of the purchase price) do you lend?

For Transactional, I fund 100% because it’s a same day loan. I do have loan docs signed as a backup, but I only fund once both sides have signed and end buyers funds are in escrow. We don’t require lenders title policy because our borrower is same day transaction on a double closing, not a rehab or fix and flipper. For those (one offs for me) yes, 100% of the time it’s best to be safe and require lenders title policy! You never know and I have friends who have had to use it before. Saved his ***! But he also makes his clients pay for his lenders title insurance in order to do business with his private funds.

For me, one of the biggest risks is wire fraud. We’ve had a close call before, super scary when a couple of million can be gone in a split second. The closing team had a phishing scam, got our payoff letter, changed the bank info and contact info. The closing team was about to send the wire after calling the number the scammer put in the payoff but last second realized the return wire info didn’t match where they received our funds from. Called us and found the scam. Super quick way to lose a few million in one second.

2 Votes

Quote from @Doug Carroll:

I have an investor friend wanting me to provide very short term funding for deals they are wholesaling. I need to get more details on how exactly this will work, but as he tells it the funds may only be needed for minutes, or hours, just long enough for them to sell/transfer to me and then sell/assign to their buyer.

He said 1 pt is normal but I've heard 2-3 pts elsewhere. Thanks

I personally charge 1% or $1000 min, in California info 1.5% or $1500 min.

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@Kristi Tietz I hope you've had some luck in this from a year ago.

I got an update, made a post, then realized this was an old post. But now I can't delete, sorry about that. Cheers, hope you're having a great year. :)

0 Votes

Quote from @Cheryl Petruska:

Ok what I mean is this. In California rules about double closing. Cannot be same day. Close with seller today and end buyer tomorrow. Tonight there's a fire in the house. How is that covered, since I have already closed with the seller?

Yes, if something happens between the two signings and recordings, then it’s the new owners issue until the end buyer signs, funds and records. Until then, it is whoever is on the deed and recorded by the county that owns it and would be responsible for fire damage etc because the end buyer could go to the house minutes before signing, then renegotiate and back out.

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Quote from @Wayne Brooks:

Quote from @Jesse LeBlanc:

Quote from @Cheryl Petruska:

I have a question about insurance during a double closing. Let's say that after closing with seller, something happens to the house before second closing. How is it covered?

Specify what you mean by “something happens”?

if you’re talking about something related to title, then that’s why you too even on a double close can (I always have) obtained title insurance. Cost of business on my eyes for the security.

If you’re talking about fire damage, tree falls on it etc, I’ve never seen or heard of anything happening when both closings are usually at the same time. Usually the end buyer would check the house out before going to closing, then go to closing like normal.

If they noticed something before signing, then don’t move forward with the closing and refer back to the original (current) owner.

until the deed is recorded, the owner with their name on the deed recorded by the county is who is liable for the property.

Not exactly……title passes the moment the seller signs the deed to the buyer……recording is just “notice to the world”.

Yes, but I’ve seen many times it’s then not recorded if something happened or the funds didn’t hit the account.

so until funds are in, everything is signed & it’s recorded, it’s not fully a done deal.

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If any wholesaler is looking BEYOND just EMD lending, I'd love to help out. I'm pushing for 100 all 5 Star Google Reviews for my Transactional Lending business and can guarantee a smooth double closing. I don't offer EMD lending though, I'll leave that others, but I do fund 100% of what is owed for the AB transaction. Sometimes wholesalers don't put down EMD, if that is also owed, i'll fund the EMD but only at the closing.

1 Vote

Quote from @Cheryl Petruska:

I have a question about insurance during a double closing. Let's say that after closing with seller, something happens to the house before second closing. How is it covered?

If they noticed something before signing, then don’t move forward with the closing and refer back to the original (current) owner.

until the deed is recorded, the owner with their name on the deed recorded by the county is who is liable for the property.

0 Votes

Quote from @Victor Garcia:

Hey everybody, first post here. I buy and sell land in South Carolina and have always bought properties myself or bought them with partners but I wanted to see if anyone knows if double closings are legal? It seems like there are very few title companies that allow partnerships on a property let alone I doubt they would do a double closing transaction. Does anyone have experience with double closings in SC?

Thank you!

We do quite a few double closings in South Carolina each month. It’s not illegal to buy a house and then sell the house you own.

0 Votes

Greenville, South Carolina

Quote from @Hadas Arazi:

Hi everyone,

New to wholesaling/real estate investing

I'm wondering how foreign wholesalers double close in case needed? I'm talking specifically about FIRPTA

Not sure if I can even use transactional funding for double closing as the title will hold 15% from the purchase price if I understand FIRPTA correctly, that mean I won't be able to return the loan immediately?

Would appreciate any advice

Good Morning @Hadas Arazi, as for the Transactional Lending, your loan on a double close will be paid back right away, so don't worry about that. The taxes come off of your profit/spread and might be withheld but won't have anything to do with the Transactional Lender. :)

I've funded many double closings for some friends that live in the UK and work here in the states. I am not 100% clear on the process for taxes thereafter for them, I know enough but would rather someone more experienced to chime in if needed.

0 Votes

All Forum Posts by: Jesse LeBlanc

Jesse LeBlanc has started 46 posts and replied 576 times.

Post: Transactional lending to wholesalers?

Post: How much should I charge to provide very short term funding

Post: How much should I charge to provide very short term funding

Post: Question regarding short term EMD lending or “gator lending”

Post: Double closing insurance

Post: Double closing insurance

Post: How to find a gator lender to fund my EMD?

Post: Double closing insurance

Post: Are Double Closings Legal in South Carolina?

Post: Foreign wholesalers - how do you double close? FIRPTA