All Forum Posts by: Russell Salinas

Oh, and thanks Jay for the recommendation!!! Thanks to everyone who responded here.

Jay, what do you mean by taking a valid listing?

To Geo, Ted, and Brent,..

   thanks for each of your responses!!! They are vey much welcomed!!!

   First, Geo! Thank you for the welcoming!!

   Yes, I do need to work on my negotiation skills, no doubt. I am working on that by taking notes on my experiences and everything I learn from you and others here on this site.

   Geo, you said for me to ask my buyer to put X amount in escrow so I could secure my payment. How is that done? Do they put it in with an escrow company under my name and with a fee agreement signed by both of us?

I can get the seller to either sell to me or he and I can partner on the deal by setting up an LLC together. He has an LLC set up already and said that we can use his LLC company to do the transaction, but I'm not comfortable doing this cause of any legalities that I may be missing out on such as taxes, etc. Plus, I will have to get some sort of contract signed and for me not having capital to work with, its difficult for me to go to an attorney and get his help on stuff like this. So, I don't want to do that. Or how can that be done so that I get my pay from him?

   Second, Ted!

   My buyers haven't done anything to prove to me that they have end buyers with cash. They just say that their buyers don't want to deal directly with me, which I think is just an excuse to get me to give them my seller info so they can wholesale the deal, marketing for buyers not having a buyer at all. At least that's what my seller pointed out to me over the phone. I will get them to give me proof of funds to see if they are serious.

   The only incentive to give my seller would be to partner with him or give him a portion of my profit. He did say he wanted me to teach him how to get money from the government for investing in real estate, something I'm working on myself. So, maybe that can be a pay off of some sort. My seller seems to be serious and has proved to be helpful meaning to me: he is honest and open. I just don't know if doing the deal through his company is a good idea.

   Lastly, Brent!

   Yeah, I thought about doing it that way and just get a fee. But I may be shorting myself without first seeing what or how much a deal can net me.

   And on top of all this, like my seller pointed out: People can just go around me. That's what happened to him. So, now he just wants to deal with buyers. So, that's why I decided to go the transactional funding route. I can be his buyer if only my buyer would cooperate. I just may have to find other buyers who buy direct from me. I just wish we could do the transactional funding.

   Now, I spoke with my buyer's partner and she even said that doing it that way was a great way cause its a smooth deal. No one can get cut out. I just don't understand why they don't want to use it. My seller was all for it. That's why he wanted to partner up and do it in his company.

   I spoke with the funding company and yes, like Ted said, they will require the buyer to have all the money in the escrow account. They don't have a problem lending the money. They can do up to $100M per deal. I've gotten POFs from this company before and I know they are legit. So, being low on capital isn't a problem for the most part. Just need cooperation from both parties!!!

   Thanks for the help guys!!! I am logging everything so I can keep and have scripts for future reference. Thank you so much and I hope we can do deals together in the near future. Let me know what you are looking for and maybe I can find it. Once again, thank you!!!

Russell

   Brent, thanks for the reply. The seller and buyer are real. Yes, I do want to have the seller sign a contract with me and I would like to have the buyer sign a contract with me, too. The seller has no problem. I just have to do a transactional funding so that he can "sell" to me since he wants to deal directly with the buyer.

   The real problem is that my buyer says that they have cash buyers, but that their cash buyers don't want to deal directly with me because he doesn't know me. I don't have a personal relationship with him. (I smell smoke!!! And I'm not in the hog buying business!!!)

   My buyers just want me to sign a fee agreement with them and just let them deal directly with my connection so they can wholesale it to their cash buyer(s).

   I don't want them knowing who my connects are and I don't want them cutting me out of the deal. So, that's why I decided to be the buyer and then the seller by the transactional funding!!! But my buyers don't have the money to put in escrow, which is what the lender requires.

   What do I do?

   Hi, my name is Russell. I am new to investing. I have a seller who provides me with deals. I have a buyer who says they have cash buyers. I want to provide my buyers with the deals, but my seller says that he wants to deal directly with the buyer. So, I will be the buyer using transactional funding. In order to use that funding, the lending company says that my buyer has to put money in escrow for the full amount. My buyers say that they don't want to do it that way. Why? I don't know!!! If they have cash buyers they shouldn't have a problem with that, yet they say that their buyers don't want to deal directly with the seller unless they have a personal relationship with the seller. So, they want me to sign a fee agreement and just let the buyer and seller work it out. Once its all said and done, I'll get my fee!!! Something doesn't sound right! Can someone help me understand contracts and how to structure the deal so that everyone can win? Thank you so much!!! I appreciate it!!!

Sincerely,

Russell Salinas

512.785.7307

[email protected]

   Hi, my name is Russell. I am new to real estate investing. I am trying to do some deals, but I seem to get mixed answers on how to go to closing, set up contracts, and just everything. I would like to give you a scenario of what I am trying to do and if you can help me sort things out I would greatly appreciate it.

   I was contacted by a facebook friend and she has buyers that want to buy lots of investment deals. So, I have a connection that can get the deals from bank(s), brokers and other resources.

   I have asked my connection guy to find the deals that my buyer is searching for. He said he would get the deals.

   Now, I don't have money to invest at all. So, I called a lender. They will lend through transactional funding. The lender said that in order to do the deal, the buyer would have to have all the money in escrow with contracts to purchase signed, etc.

   I have heard of investors, that are in my position, that have lost deals cause they were cut out of the deal by their buyer(s). So, how do I lock up the deal without anyone taking my deal from me?

   My seller said that he wants to deal directly with the buyer, but my buyers are saying that their buyers don't want to deal with the seller directly. So, that's when I decided to use the transactional funding source. This way, I am the "buyer" and then i become the "seller" once I sell to the buyers. However, my buyers don't want me to use the transactional funding source for some reason or another, but I want to use transactional funding cause it'll keep the buyers/sellers from going around me. (I will charge a $5K non-refundable deposit to the buyer).

   Now then, how do I make sense of all this stuff? How do I go about doing this deal using transactional funding with both my seller(s) and buyer(s)? What is the procedure/method/strategy for negotiating, contract set up, and closing?

   Can my buyers have their buyer put money in escrow so that my buyers can have the money to show my lender that I have an end-buyer? Or how can this be set up so that everybody can win? 

   If anyone can help I would greatly appreciate it very much!!! Thank you in advance!