All Forum Posts by: Daniel Paloscio

@Derek Nykamp like others have mentioned in this thread, you can use hard money but it would be a very expensive option. Typically you will pay 3 points and 11-12% interest. Most hard money lenders will have a 3 month minimum earned policy. 

You will save a lot of money and time using Transactional Funding. Transactional Funding is 1% and you do not need appraisals, credit checks or inspections and very minimal paperwork. Happy to go into more detail about it if you want to reach out. 

Fantastic post @Jesse LeBlanc! 

@Jesse LeBlanc is absolutely correct. This really is going to depend on your goals. A lot of the wholesalers that both Jesse and I work with typically will elect to Double Close when the assignment fee is larger than $10k. When double closing you are able to keep the seller and buyer from seeing your fees, as some sellers get upset after you have negotiated them down to see that you are making $10k+. 

Most of the hedge fund buyers are requiring their sellers (you the wholesaler) to post on title before they take ownership. The only way to do this would be by doing a double closing. 

Additionally, a double closing is a much cleaner transaction. A lot of the wholesalers that I work with prefer double closings to assignments just to keep the wheels moving smoothly. 

Ultimately it is your call though. If your seller and buyer are both comfortable with the fee you are making then it would make the most sense to assign and save yourself the additional costs of a 2nd closing. 

@Charlie MacPherson I will reach out to you direct now. We aren’t able to post anything about our services in the forums but I can help.

@Davaris Bennett transactional funding definitely works! It’s a time and cost effective option in scenarios where you have to bring money to fund a double closing. A lot of wholesalers use transactional funding to close deals when they are selling to hedge funds that require double closings, or when they have assignment fees greater than 10k and they do not want buyers or seller to see the fee.

Im happy to answer any questions you have about transactional funding or to connect you to a few investors who are using transactional funding in their wholesale businesses.

Hey @William Luke Laity, I have a template assignment agreement that I'd be happy to share if you want to shoot me a pm. 

Joseph Hughes with All Real Estate Solutions is awesome. I'm happy to share their contact info with you if you want to shoot me a pm. 

We fund lots of deals for wholesalers at Monument Title Insurance Company. I'd be happy to shoot you their contact info or make an intro if you want to send me a PM.

I find that it is becoming harder and harder to find title companies that are willing to dry close. Following for rec.

@Kristian McCreary no, the deal would actually be 100% yours. You do not have to JV. As long as you are buying and selling the deal on the same day, with the same title company, transactional funding can be extremely cheap. Typically 1%.