All Forum Posts by: Jesse LeBlanc

I can definitely see you doing that!!  I love it when folks learn to adapt and create winning solutions.  Get's the deals closed, created more referrals and happier clients with long term mailbox money for you!  I LOVE IT

@Jay Hinrichs I didn't know about Oregon, thank you for bringing that up.

I am also pushing more wholesalers to "wholetail" their deals or keep them when something makes sense!  I also push wholesalers to create notes for their spreads vs double close or assign then get the investor to pay a little higher fee or interest for X years for the wholesaler to learn how to be a true investor and mailbox money.  BUT RARELY do they want to learn this...

Just like Illinois, all one has to do is double close and not worry about being licensed.  FOR NOW anyway...

I think what MIGHT make a little more of a difference is to enforce this law AND enforce what NC does, which is on a double closing the $ MUST be separate for each file.  So no more pass through funding, requiring the wholesaler to bring their own capital or borrow funds to double close, then getting around the 1 assignment per year legally no problem.

Not sure that will even really be enforced unless the closing team refuses the business from a wholesaler. Then they'll just find another investor friendly closing team. It will however scare a lot of folks though as you're already seeing wholesalers panic in VA like they were in IL years ago. Now you don't hear about it much any more in IL, so in a few years it will be another state and then you won't hear anything about VA anymore.

@Joseph Park Are you referring to those who fund EMD or those who fund the full amount at closing for your purchase of a double closing? Although I don't fund EMD, I do refer that to someone I trust. I do fund the full amount on closings for wholesalers who need Transactional Lending for their double closings. If you go to my website, feel free to click on the "I don't have a deal right now" button and I'll get one email over to you about our fees, our process etc. If you need EMD, there is a button on the site for that as well and I'll get the referral letter over to you with Nathans contact information.

@June Broce We do a ton of Transactional Lending for wholesalers looking to double close, some investors who are doing seller finance deals or same day purchase and refinance into a DSCR loan.

If you can assign the deal and save yourself some money, it's the better option but I 100% understand why someone also prefers to double close and secure their profits depending on the scenario.

With that said, you can buy/sell the land SAME day for a legit double closing.  I highly suggest that you find your buyer first, know what they are willing to pay for it, then negotiate with the seller to a lower price.  Then from there choose to assign or double close and if the latter then set it up with the closing team for the same day.  You can then use Transactional Funding if you choose, otherwise if you planned to buy the land then sell it later, you'd have to get a different loan type, which inevitably will cost you more plus longer hold time and greater costs over the double close and certainly over an assignment of contract.

@Matthew Yates We have funded MANY wholesalers double closings with conventional loans.  I ALWAYS tell the wholesaler to make sure they are transparent with the end buyer and their lender because MANY times if they aren't transparent about the double closing then the underwriter will catch it last minute and bring up the fact that the current deed holder isn't the wholesaler and that will kill the deal many time.

There are some underwriters that don't catch it and things go smoothly.

Then there are some conventional lenders that aren't familiar with the process and think it's fraud and won't lend on it.

So sometimes I inform the wholesaler to let the end buyer go direct with the seller, do a single closing, Increase the purchase price by the amount of the wholesalers spread and put the fee on the SELLERS side of the HUD because the lender WILL NOT pay for the wholesalers fee, but if it's wrapped into the initial AB contract (now between the seller and end buyer) then the wholesalers spread isn't brought up, it's merely a line item on the SELLERS side HUD and nothing to do with the conventional lender and it will close "100%" of the time because it's a normal ordinary closing to that lender then.

I'm still here to help anyone out for those double closings.  We just funded another 2 there in Illinois.  :)

They can't stop from double closings, even if one chooses not to, there are a ton of other closing companies that still close these every day. 

@Greg H. nailed it. 

@Randall E Collins One way around the assignment is merely draft an amendment to the original contract with the agent stating "Buyer and Seller agree that XYZ (your end buyer) is the buyer" (or word it how you all agree) BUT have an email with the end buyer and the closing company stating what your fee is first to secure your fee. Which in essence is assigning, but making it look like you're just changing the name of who the buyer is. Which happens all the time, a buyer might decide "oh, I signed under my flip LLC but really want it to be purchased under my rental LLC".

Just make sure that if this was your intention, make sure you have your buyer lined up first and be transparent so you won't have any problems.  Then it's all legit, everyone wins.

Good Afternoon @Ciera Yorty Congrats on taking action first of all!

Does the seller sign your assignment, ABSOLUTELY NOT.  Your seller will only sign your AB contract where you're the buyer.  The end buyer signs your assignment of contract BUT the end buyer needs to see your original contract BEFORE they sign (if they're smart) because they need to know what they are ASSUMING (taking over when signing, meaning they step in as the buyer and whatever is on your original contract they are now legally obligated to do).

Sincerely appreciate it @Avrom W. Smith :) :) And you're right around the corner from me in Marietta :)