All Forum Posts by: Thomas K

lolz, thanks!

Thank you for everyone's help! I understand it better now.

Colin, I will definitely give you a call soon.

Ryan, lolz, thanks for your thorough answer...lolz, not long-winded at all :)

Hi,

Are Fannie Mae or Freddie Mac properties the same thing as regular REO properties held by a conventional bank? Can we wholesale these Fannie Mae/Freddie Mac properties the same way as wholesaling REOs (all cash, via double closings, Land trusts, selling the LLC)??

Any strict seasoning issues? Any anti-flipping rules? Or does Fannie Mae/Freddie Mac largely cater to first time home buyers?

Thanks!

Thanks J Scott, I understand it better now.

Thanks Colin for your input as well. I know that we can wholesale reos via LLC and/or land trust. Just a quick questions, Land trust doesn't have liability protection, right? How are you dealing with this issue? Because my concern is that in case something goes wrong right before I assign the beneficial interest over to my end buyer, what entity is going to protect me?

To FinancialExaminer, what did you mean when you say "To circumvent this issue, you can do a seller financed transaction for the A transaction and technically you can close with the title companies and then payoff your note with the proceeds from your sale in the B transaction.

Doing this, you'll need to explain to you A seller that your funding can not be available until immediately after the transaction is closed, then within minutes the note will be paid off."

Did you mean that we don't pay party A (the bank) at the closing table, but instead, disclose to them that we will be sending the money in later in the day?? Can we still get title insurance for the end buyer if we do it this way?

Thank you all again!

Thank you Jimmy!

Just thinking out loud, if simultaneous closings are still being done, then how come other title companies won't do it? Should we ask if their underwriters permit the title company to do it? Is there any legal documents that are passed by congress that prohibits this?

Thanks!

Thanks Jimmy!

a quick question for you: Does Florida allow Simultaneous closings? Or have you done or heard other people done simultaneous closings with REOs using all cash?

Just curious because different ppl are telling me different things.

THanks!

Hi FinanceExaminer,

I don't quite understand when you said "no, it's not illegal. It's a title concern, ALTA is the main culprit in connection with conventional lending requirements (in notices required by the settlement agent) that a buyer must be able to close the A on their on merit before selling in the B transaction. That is the settlement agent's view in a cash transaction, as explained by American Title."

Does this pertain to wholesaling REOs using ALL CASH? No lender will ever be involved. What does ALTA stand for?

Sorry for the questions, I just want to understand.

Thanks!

sorry, one last thing.

I thought most national underwriters have no problems with simultaneous closings, where can I find this out for sure?

And do title companies even check and do their homework on this first?

Still not sure.

Thanks!

p.s. this is ALL CASH, no lending institutions are involved. Thanks!

Hi,

I've heard a lot from attorneys/investors/title company that they don't do Simultaneous closings won't work anymore (this is for REOs only)? Is it true?? Simultaneous closings I mean using C's money to close AB transactions, full disclosure with C, of course. I also buy my own title policy to protect my buyer, and I don't bring any money to the table. Title or attorney will be in charge of disbursing C's funds to the bank, and the finder's fee for me.

Why is simultaneous closings disallowed (I'm in NY, NJ, CT)? I've read also read a lot of people who are actively doing simultaneous closings in their own states, here on BP.

Can someone explain to me how and why this is happening? Were there any cases where people have gotten into serious trouble with this?

Any help is appreciated! Thanks!