All Forum Posts by: Jesse LeBlanc

@Isaiah Garcia I’d love to help you out. I’ve got over 60 all 5 star reviews, plenty of video testimonials and amazing customer service plus some. Both Michelle and so would love to help you sir. The website for my company, Wholesalers Transactional Funding is in my signature.

We lend in TX weekly have had more request lately. 

VERY well said @Lydia R. :)

 No, Atlanta and most states do not. More and more are picking up on this and changing laws.  For example, NC in July of 2021 the BAR forced all closing attorneys who do double closings to make sure that the closings are completely independent and not allow pass through funding.  Then also if an assignment is used, that ALL parties must sign off and be aware. 

So I expect to see more states follow suite between what NC has done and what Illinois has done.

There are always some closing attorneys here in NC that always felt using pass through was illegal and wouldn't offer it, some of them won't even double close, but that's a personal choice but it is legal to do so.

 If you have a buyer lined up first, there is NEVER a need to market the property.  This is another way to not get in trouble @Mir Mubashir Mahmood and it's safer and MUCH easier too.  Once your buyer tells you a price, then there is ZERO guessing or hoping.  All you have to do then is get the seller below what your buyer is willing to pay and boom, job done, get it to closing and let the process go through then NO ONE will ever question you marketing the deal, it's transparent and there will be no issues.

@Mir Mubashir Mahmood Good Morning, if you partnered with a broker and THEY were the ones on the contract, then legally they would be the one on the hook to use the Transactional Lender.  If they then assigned it to you for example, then you would not become the buyer and would be the one to work with a Transactional Lender if you were needing to double close.

There are many ways to make that happen, all depending on your relationship with the broker. If you had a solid trusting relationship, then you guys could work off handshake, but in the meantime i'd sign a JV agreement or something that you can share with the closing attorney or title company before closing to make sure that you get your cut of the deal. Then the broker could remain as the B buyer in the AB transaction of your double closing since they are licensed. Then in that scenario, the broker would be the one on the hook as the buyer and would have to seek us out as the Transactional Lender for example, vs you since it wouldn't be an assignment.

@Brad T. great questions for a new wholesaler so you know what to expect going into the business vs get pissed later and mad at someone else for your lack of experience.  So I appreciate great questions. :)

I believe it's all been explained above already, but always free to clarify anything as I've ran a wholesale company in Atlanta for years, then mentored across the US from 2018-2022 (stopped end of last year to travel and enjoy life every day).

So IF you choose to double close, then the option of paying for your closing costs on your purchase (the AB transaction) is optional but NORMAL.  IF in your contract with the seller you make them pay, you can but normally you as the buyer would pay for your set of closing costs.  Depending on the state, usually the taxes are a wash as it's prorated, then when you sell same day it's prorated and again a wash.  But your attorney or title fees will be on your if you as the buyer pay for them on your AB side. 

Then if you double close, when you sell, your end buyer would then be paying for their closing costs UNLESS you already had it in the contract with the buyer that they also pay for your AB closing costs (which I find extremely annoying and rude personally, and if you wanted to do that just build it in the price vs telling them they're paying for your choice to double close when you could have assigned the deal).

Nice segway, so I'll run with it. If you ASSIGN the contract and are transparent with the seller and your end buyer, you'll never need to double close. There will only be an AB closing, then your asssignment fee will just be a line item on the HUD/Settlement statement and your seller will now be direct with your end buyer and one set of closing costs that your end buyer will be on the hook for usually.

If you don't have to double close, then don't.  Save everyone time and money.  But if you choose to double close for various reasons, keep seller separate from buyer, keep your fee private, someone refuses to sign an assignment contract, the closing team doesn't approve (stupid) or some other reason, then yes, double close.

Depending on the state laws or the closing company will also help make your decision on double closing and your additional costs.  Most states you can use "pass through funding" meaning your end buyers funds in escrow can be used to fund your AB purchase.  However, some of what I mentioned above won't allow you to use pass through funding and would require a lender (like me) to fund your AB side if you didn't have your own capital in the bank to fund your purchase before they'll close the 2nd transaction (BC) side.

With all that said, try to be transparent with everyone and assign.  but if you need to double close as backup make sure to calculate that cost ahead of time and still keep a good spread so you'll make a profit at the end of the day.  Then if you're in a state or dealing with a closing company that requires you to fund your AB side, then hit me up since you'll need Transactional Lending (funding) and I'd love to help you or anyone else out. :) :)

@Raza Hussain Jafri You'll need to also discuss this with your broker, each broker is a little different when it comes to licensed agents wholesaling.  Also since you are also a licensed agent you'll have to disclose that with your seller but depending on your broker, you may or may not still have to use the standard RE contract.  If your broker allows you to wholesale, then as long as you tell the seller that you're an agent but you are also direct with end buyers, then you can still assign standard contracts to the end buyer or even double close.  But it can be a very gray area or not accepted at all with some brokers because they don't like wholesaling, they might feel like they're missing out on their cut of the deal or they don't want issues down the road while others could care less if you operate as a wholesaler.

Always here to help out with Transactional Funding 😁😁 meanwhile, after running my own wholesale company for years and mentoring, I also can assist with tips and tricks. But I’ve since stopped mentoring to focus on a better balance in life between work and traveling.

Look into The Kingdom Real Estate and also read the book "If you can't wholesale after this, I've got nothing for you" by my friend Todd Fleming. :)