I would like to know how to get involved with real estate “short sales”…I love customer service, but I want out of retail and the R.E.S.S. breed of service can save a lot of people a lot of money, as apposed to convincing them to spend more money as you so often find yourself doing in the retail environment. However, I don’t have money to spend on seminars, boot-camps and other such conveniences or money traps (should that be the case). I would really appreciate anyone who would be willing to take their time to teach me at no cost up front…and i have no problem arranging appropriate kickbacks for the kindness once I get going. Thank you in advance for your time.

I see all these infomercials for programs like the “millionaire mindest collection” and I have not been able to figure out how they expect you to make a check off of someone else’s near foreclosure. If you know what you’re talking about, please explain the steps, thanks!

I’m a California Real Estate Agent/Investor.My real estate office has an established relationship with Lender Clearing House that offers custom bulk Bank-Owned Real Estate (REO) portfolios ranging from $2 million and higher. I would like to purchase properties at 50% or better (3% purchase fees + 3% closing costs + 44% property value) on Single Family Residences (SFR). Most hard money lenders only handle 1 property at a time. I have found 1 lender wanting 10% down = $200K, but that’s entirely too heavy to lift by myself.

A $2M portfolio is roughly 8-14 properties in the San Fernando Valley. I need help locating a reputable lender that is willing to fund on the structure of the deal, all property will be immediately resold at 90% (est.). Can anyone help me?

Foreclosures and Short Sales seem like a easy way to become the next millionaire yet when I tried them they were all a big waist of time and money. Another let down.
Who do you believe Who has the time to go or travel to all these court houses,and sift through information you know nothing about, go to auctions and bid on property when you have no money to buy anything?

Funding For Short Sale Investors With No Money Down

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Home Page > Finance > Funding For Short Sale Investors With No Money Down

Funding For Short Sale Investors With No Money Down

Posted: Apr 08, 2011 |

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The critical requirement to complete reo funding of a property or portfolio is that there is a committed and funded End Buyer in place. He keeps his money ready to fund at the end of it all. Whether funding is via cash or financing, a committed buyer with funding is necessary. Additionally, the C Buyer or End Buyer must be committed to purchasing the commercial or residential property or portfolio within a defined window of no greater than 1-4 days. This short term loan serves the purpose of bridging the gap and is also called transactional funding, thereby imp-lying that it helps in completing a transaction.

A Transactional Funding or Short Sale Funding scenario consists of the Commercial Real Estate Investor or Residential Real Estate Investor contractually securing the option to purchase a property whether it is a REO, Trophy Home, or Distressed Commercial Real Estate property. In the same way this Investor indulges in quick buying and selling of the property hoping to make more money. In our example, which is the norm or typical of Double Close Funding or double escrow closings, the B Party or Real Estate Investor is either not in a financial position to purchase the property with their own funds for resell with margin and/or would prefer to leverage the capital of another party- the hard money lender. Essentially, by opting to use our Transactional Funding solution the Real Estate Investor will secure the property with No Money Down.

This end buyer who is known as the C Party is now an Investor for $1,500,000 for the same property. So actually the C End buyer will create liquidity for the bridge loan client. Obtaining assignment of the property or portfolio can often be addressed by presenting the A Seller with a Proof of Funds Letter. We are very prompt in making proof of funding letter available. This is the prerequisite for making transactions under Title and Seasoning. It meets the requirement of the recent changes in Title and seasoning.

This is the basis of our funding. All expenses incurred on this transaction will be a part of our funding. This is also known as Double Closing. You or your company as a client incur a nominal profit share of 3% or less for the use of our standard Transactional Funding or Flash Cash bridge loan programs.

As a Transactional Funding Lender, we are well capitalized and able to address and legally naviagate recent changes in Title and Seasoning law. Both these transactions should be independent of each other. This funding should be done before the C end buyer buys it from A seller. Transactional Funding strategically serves the B Investor who may no longer use the C End Buyer’s funds (or is simply not in a position financially) to complete the profitable acquisition of property from A Sellers.

The Transactional Funding Lending source provides the necessary capital for the A to B transaction to successfully close the initial transaction of the Double Closing. A creditable company can be asked to close both transactions. The A Seller/Party will exit with a cash purchase from either institutional funding sources or private real estate investors- finalizing the A to B transaction. Now comes the turn of the B to C transaction to be finalized. Funding is based on the credibility of the C End buyer . Funding cannot be otherwise. As soon as the funds are credited into the Escrow account the C End buyer exemplifies his intentions. Once the amount is escrowed, we are quite sure of a successful transaction. Approval for a prospective opportunity is qualified by the validity of the parties involved A On an average the review process does not take more than a day .

EXTENDED TRANSACTIONAL FUNDING

Time limit can be enhanced. It is called Extended Transactional Funding. This is the period of closing interval for Hard Money lending. Time duration is the basic variation between the two fundings. 120 days are taken after the A to B closing is achieved. Transactional funding is the ideal alternate proposition.

Extended Transactional Funding example:

Our client has assignment of a property for $1,000,000. This project is worth $1,000,000. Here Flash Funding requirement is varied. This time period is not possible. The investor has a C Buyer ready with his commitment. This is the amount agreed upon, for the property. The duration in this example will require greater than 1-4 days. As the lender, we provide an extended/delayed form of short sale financing. We will fund the A to B transaction including closing costs, we will then allow upwards of 120 days for our client the real estate investor to close his B to C transaction with the C End Buyer. Extended Transactional Funding or Flash Funding for Short Sales will continue to evolve; providing creative solutions for Real Estate Investors. It is indeed an established resolution for short sale investors.

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Know more about Transactional Funding. For more information visit http://escrowedproofoffunds.com/solutions/transactional-funding/

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I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me
What are tax implications of short sale ?
What are the repercussions of a short sale ?

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It looks like my bank is going to approve my DIL. ( the short sale fell through at the last minute) Will I still owe them money?

I am trying to get into buying preforclosed properties and fliping them as soon as possible. I beleive that this is called a short sale. Is this type of thing risky and what do you need to start doing this?

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tomorrow. My Real Estate agent is telling me that since we have not gotten an approval from the second bank we must submit a cancellation letter to cancel our contract by today because the house is supposed to close tomorrow. She is concerned that if we do not close tomorrow we might be at risk to lose our earnest money that we put down ($3,000). Does anyone know what my rights are to get that money back. I want to stick with this purchase, and I know that short sales can take months. I am fine with them holding the money, but if the bank does not approve the sale will I get my $3,000 back?
Thanks everyone!
The approval that we are waiting for is from the bank which owns the second mortgage for the current seller. We are not the ones with the second mortgage… we need their approval because they are owed money from that property that they are obviously with a short sale not going to get.
The second mortgage is for $134K. We have asked the bank to tell us what they require to sign off. Both agents as well as the lender are willing to contribute part/all of their commisions to cover an amount negotiable with the second bank… the problem is they haven’t even responded.