All Forum Posts by: Jesse LeBlanc

You REALLY need to talk with your CPA since they your personal finances better than any of us here. Your LLC may not be set up correctly for taxes and you could also be missing out on what you can write off.

Anytime you use available balance on you HELOC, naturally your credit will be effected due to your increased new balance. So depending on how much other available credit you have will be a factor in how much or how little your credit will be effected.

also, as long as you’re making money and the tenants are paying you’re mortgages, taxes, insurance repairs etc then I’m a little less worried about the credit because you’re now actually increasing your net worth AND you’re showing additional income which will help when getting future loans. 

Wholesalers Transactional Funding has over 50 google reviews, all are 5 Star Reviews with a handful of testimonial videos. Please feel free to check out my website and vet me out! See my website in the signature or find us on Facebook.

I will fund in any state. We've specifically had a lot of wholesalers from North Carolina, Florida, Georgia and Texas but certainly have connections is most all states. I'm able to fund SAME DAY, although majority of new clients give us a few days notice. I can provide you with a Proof Of Funds (POF) letter if you need this for your sellers.

We've funded deals over $1 Million and commonly 5+ deals per week so we can handle the volume of new clients.

No worries my friend, I wasn't 100% sure honestly if those lenders did also partner for down payments.  Case by case and NEVER HURTS to ask!!  :)

@Joseph Harris III I could be wrong, but I THINK that term (which I think is really really SILLY) but I believe that's folks with limited $ and they usually fund the EMD, not a large portion/down payment on a deal. Usually something of this amount for a downpayment would need to be a private lender or a funding partner on the deal that would want a piece of the pie. BUT you never know who's out there.

On double closings, I can fund the full AB side if @Ethan Wilson you ever need it on future wholesale deals.  Also, CONGRATS on locating this deal.  If you don't find a PML to be 2nd lien, you might want to look into partnering with someone as it's better than losing the deal all together over funding and also if you aren't familiar with multifamily, it would be wise to partner with someone who is, allow them to help with the finances and educate you along with the way.  This way its a win for you both.

@Kris Copeland First of all, CONGRATS on your 2nd deal!!  

If you do an assignment, then the fee must be shown on the HUD/Settlement Statement. Anything that has a cost has to be on there, it's checks and balances, which includes your assignment fee. Generally your assignment fee will be on the buyers side as they're the ones paying your fee, not the seller. So MOST likely, even though the seller can see it, they generally don't care about the buyers side, they focus on what they are getting back and what on there end was being paid off.

One thing you could do is label your fee on the buyers side as "Copeland Management Fee" for example.  It doesn't have to say "Assignment" if that was a concern.

The other option (which costs you a little, but you'd lose out on closing costs and lending fee) is to use Transactional Lending on a double close where you are the legit buyer, but then same day you are then the seller and your investor is your buyer.  So you'd have 2 closings, same day, use Transactional Lending to fund your purchase then you get the difference once you sell to your investor.  That for sure stops your seller from seeing what you make, stops them from knowing who the end buyer is and it stops your end buyer from knowing the original seller or how much profit you made.  There are MANY reasons a wholesaler uses Transactional Funding, but if you can assign, you'll make more $.

Remember that it's always best to have your buyer first and be transparent with your seller of what you're doing.  Then you never have to worry when you get to the closing table.  You, the wholesaler, DESERVE your fee for helping the seller, solving their problem and bringing a good deal to your end buyer.  Win across the board when done transparently.

I fund a LOT of double closings for wholesalers, but I personally do not fund a wholesalers EMD, just the final amount owed on the AB side of their double closing.

I know some folks that do, and they have their contracts that protect them.  It's certainly an easy thing to do, super low barrier of entry but also VERY HIGH RISKS if you don't use the right contracts, and I can imagine some folks sending $ before getting their contracts signed and forget OR trust someone else and boom....LOSE all of their $, and rightfully so to the seller.

I know new folks or those who lend on EMD would disagree, but I personally wouldn't want to deal with the headaches on these very small amounts of $ and the wholesalers that need it.  Someone that doesn't have $500-$1000 like so many common EMD amounts, I'm not sure they would value or care much about lenders money.  No skin in the game generally means no reason/need to care (except those who truly value relationships and other peoples money).  So with that said, you then would have to make sure your contracts are flawless AND you likely will be doing more work constantly checking in on Due Diligence periods, the wholesalers contracts, their amendments, keeping up with the closing company etc. 

A lot of work for small $, but I also respect the hustle from folks that don't have much $ and trying to build their business and capital.  

We ALWAYS check ourselves BEFORE closing.  You can also in the future make sure that your contracts state that the closing won't occur until both buyer/seller confirm it's vacant or you can write in the contract that this contract will continue to be extended until vacant at which time closing will take place.  That also helps to lock the contract in but also keeps the buyer safe from a scenario like this.  If the seller needed more time, then in the contract they should have left something like 5-10k in escrow and deducted $100/day for example for each day it's not vacant. :)

@Irene Hunter Wholesalers Transactional Funding, over 50 google reviews, 100% are 5 stars and testimonial videos.  Closing one in PA this week actually. :)

A double close would cost you more since you'd be on the hook for paying closing costs on the first transaction. EMD depends on your contract and regardless you would be responsible for the EMD unless you assigned it before the EMD was due and then your end buyer put down EMD. POF is a stupid piece of paper that means nothing, but for some reason some agents like to see it and feel like it means something, but I never offer it unless someone specifically asks when I used to wholesale. I have done 100k assignments, and I've also done 5k double closings. So many variables and reasons, no two scenarios are 100% alike due to dealing with human emotions.

@Bryant Brislin Agreen 100% BUYER FIRST to lessen the work, be more transparent, have less problems, DOESN'T REQUIRE the wholesaler to know ARV's, Rehab #'s etc. Simply "Buyer, what would you pay" then get your seller below what your buyer would pay and DONE!