All Forum Posts by: Eli Rozansky

I have been flipping properties for a while now but have stayed away from fix and flips. However, I have come across some properties recently at a good price that I think would only need about 10k to 15k worth of work to really boost the value. Because I am just entering that side of the industry, I was hoping some of you could help me. I would love to here some red flags that pop up when you are deciding if a property would be a good flip and fix or not.

I work in Colorado and have certainly seen some negative response to this new bill. As has been said, an investor must wait 14 days to flip a property unless it is fully disclosed from the beginning that it will be a flip. Although many investors do not always like disclosing, I would recommend it. I have read countless articles on the rise of short sale fraud and the trouble it can cause investors. Here is a link to Freddie Mac's website about it: http://www.freddiemac.com/singlefamily/news/2010/0412_payoff_fraud.html

I was wondering how different investors out there are finding their back end buyers for their flip deals. I have been asking around and have heard some very different and creative answers. I was hoping you all would share your strategies.

Matt,

Are you talking about a simultaneous closing or a back to back closing where both transactions are done separately but in the same day. In my experience, many more title companies will do back to back because you will not need to commingle funds.

I've sadly been hearing stories of investors left at closing without funding when their private money lenders bailed on them last second. I have heard different things from a lack of capital to stories of fake lenders. I was wondering if anyone has some stories and some red flags they see to share and help investors prevent this?

Eric I a right there with you. I could not tell you how many deals we have to turn away due to seasoning requirements. Also, many people call in asking for money for fix and flips when they really should be seeking a hard money lender.

Misia,

You can also receive proof of funds letters from other sources than hard money lenders. "Wet" money lenders frequently provide proof of funds letters for free.

I'm with a transactional lending company and we frequently have to turn away flip deals because of seasoning requirements for the transfer of title. Although some investors can occasionally get the seasoning requirement removed, has anyone out there found a consistent way to get around this issue? BofA is notorious for this requirement and other smaller banks have adopted this condition as well. Thanks for the help!

I have not personally used transactional funding, but work for a transactional funding lender. For our deals, there is minimal risk to the investor because the deal must be pre-contracted on both sides before we will lend. Should the back end buyer fall out, the loan will go into default and there will be a default rate. I haven't heard of any companies that will let you get out of the deal without any fees or a default rate should the deal go south, Hope that helps.

I have been in the transactional funding business for some time now and have seen the great success it can bring people. For those of you who don't know, transactional funding provides 100% of the loan to cost on investment flip properties and is generally only lent for 24 to 48 hours. These properties often are short sales and reo's, and occasionally wholesale deals.

I have noticed over my time in the industry that many people are weary of these types of lenders and are sometimes afraid to use these services. Being in the industry, I wanted to start a thread regarding any concerns investors have using this service as well as any questions people may have about how to use them. Those are my starting topics but feel free to take this wherever you all see valuable.