All Forum Posts by: Ted Akers

Hi Belinda,

I apologize for the full voicemail. I was traveling today, but just sent you a message here on Bigger Pockets.

Thanks, and thanks to @Anson Young for the recommendation.

Same day deals are getting tougher to find, although there are still some out there. Extended term deals do not fall apart as a rule, if you are firm about requiring the flipper to require the end buyer to be at risk financially with a larger non-refundable EMD or security deposit. You do want to vet the title company and as a rule do not close with small no-name companies. If you suspect anything afoul suggest to the flipper that you may close with a title company of your choosing.

Hello Anthony,
I sent you a colleague request. Not all transactional funders charge up front fees or monthly membership fees. Fees for multi million dollar deals are higher than for a standard deal below $1M as there are few players with that capacity. Feel free to PM me or call after the holiday.

Most Transactional funders will have capacity limits. Transactional funding for these larger amounts can be done for back-to-back scenarios with a double escrow. It is much more likely if you have a cash buyer and becomes less likely if your end buyer is using a mortgage. That is because the lender for your buyer may not be willing to have their funds in escrow before you are in title. It is possible if the lender is given full disclosure regarding the nature of the transaction and understands it is a purchase and resale with a double escrow is involved.

Double closings are completed California with the majority of title or escrow companies, so at least this one time Mom is not correct. Some closing agents may choose not to do them due to an office preference and the fact that they are a bit more complicated. If you are doing a short sale as an investor it must be disclosed or you will likely not find a title/escrow company to close the transaction.

Most HUD retained title companies/attorney's will not want to close the B-C transaction, so you will need a split escrow - a second title/attorney to close the second transaction. You always want your sale contract to specify that you are to choose the closing agent and you want to find an investor friendly one for the second transaction. It sounds like you do need an extension. What are your purchase and resale prices?

I have to echo the post by Ann Bellamy, with emphasis on her item #3 and the fact that there are noticeably fewer same-day deals. Most short sales are being approved with 30 day holds extended to a 90 day hold if the resale spread exceeds 20% (disregarding any funds spent on rehab). There are still some same day deals, but the majority of the market has moved to either 35 or 95 day transactions. Fees can be attractive on these 35-95 day transactions, but they are an entirely different risk profile.

John,
You have a better chance to accomplish a back-to-back closing with a hard money lender than you do with a traditional mortgage. But your challenge is to get them to the closing table at the same time as your purchase. It can be done if you disclose to them that you will be in title prior to, but on the same day as, their funding. If there is a delay anticipated with the hard money lender you are really looking at a bridge loan rather than transactional funding because there is not earnest money at risk, which is what transactional funders would look to for comfort in funding the purchase.

Mark and David,
I agree 100% that there are many very qualified mentors that can command high and justifiable fees. I fund for some of their students based on the mentors recommendation. My post to Bill was in jest as there are many out there that likely earn more on information marketing than in their real estate business. Qualified mentoring for a fee is entirely different than some that sell programs to new hopeful real estate investors and deliver relatively insignificant content, only to pitch the next level information they need to have to succeed, and then the next level again.

Bill Gulley, Your experience and insight would be most appreciated. AND, you would not be thrown into that GURU category until you have an add-on price for the real details, have two or three up-sales, a not to be missed $997 boot-camp, a price-reduction if they do not buy at the offered price, and a$25-30K coaching program. I think you are safe with not being hung with that moniker......lol.