DG Money @ 2% and $495 fee

That is transactional funding to be used for double closing. It is known as flash cash. They do not fund long term loans at those rates. So they are a little misleading in the way they present this funding to new people at these seminars in my opinion.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

From what I understand from that free seminar portion that you're talking about:

1) You have to be Success Academy graduate.

2) You have to have a qualified buyer lined up for the double closing.

3) The deal has to make sense.

I myself have had some real estate training from another company so I am not a Success Academy graduate and therefore I do not qualify. There may be some other reasons people don't use Dean's money. Perhaps they want to buy and hold or use other methods of investing.

Hi DG family, I'm a newbie and after watching Mondays web decided to take action. I contacted an agent and asked for 30 to 50 listings in my area. She asked if I was an investor and I said yes. I emailed her the criteria of what I was looking for, seller motivated, price reduction,vacant,and listed as is with the hot zip codes. She reply stating if I have been pre-approved and that once i've been we can take a look at some houses. Should I start looking for another agent? I thought she was pretty understanding about of what I wanted being she started out as a private investor herself that's why I chose her. Also should I have given her an address of a REO i'm interested in? I told her that I would properly check if I could go VA loan. She said she would check on it as well. Again I'm new at this and still reading Deans book, Be a real estate millionaire. Just wanted to break out of the FEAR.

Hi Anthony,

The funding is transactional funding available to you for up to 6 months at the promotional rate, but it's a private company (not Deans money). I went to the class in NY a couple of weeks ago, after the three days I received a flyer with all of the info I needed to get that done if I should need to use it. Hope this helps

was an interesting tidbit, and thank you Michael Mangham for your input. You are always on top of things.

Thanks to all for the posts and clarification.
Good luck and God Bless
Anthony

Hey Willy! I am also fairly new to this site and the DG fam. However, I have been reading a lot and I have noticed that this question is out there a lot. I have been following the advice of another member of this site by the screen name of Awaterloo. On a seperate blog I seen that he said,

I would do 2 things.....

1) Keep looking for another Realtor. Being one myself, that's a question I always ask to people I speak with for the first time. That is a question for people who are going to buy a house to live in it for 30 years. This Realtor doesn't sounds like one who will work with investors very well.

2) If they ask how you will be paying for the property tell them you will be writing CASH offers. If they ask for proof of funds, you can tell them you will get them proof of funds for a specific property when its time to write an offer. You can get them at:

www.coastal-funding.com
www.insiderscash.com

The event this thread speaks of may be the one marketed by Insider's Cash (not certain????). I'm also not certain how affiliated they are with DG Enterprises.

Nonetheless, transactional funding is great when you need it. There are several to shop and choose from.

Thanks Michael-- always "spot on".

To Jdavisj101, thanks for the info, will continue searching for another realtor.

Hello, Pre-approval is very common for anybody wanting to buy a house. This is to make it easier for you. Normal to ask of any first time home buyer or investor.Best is it is easy to get pre-approved. Most realators can help you get set up with a home lender. Normal credit check of your information and financial ability to pay back a loan. They try determine how much you would be able to get a home loan for first. Then they give you aletter says you have already been pre-approved for a loan up to that amount from that bank. This just show -
If you wanted to buy a house ,you would be able to get a loan for it. It is not a loan. They are not sign you up for a loan, only show you could get it if wanted to. That is a pre-approval letter. If you try for one of the great low price deals from Goverment HUD homes, or a Bank REO Foreclosure-- Then that is required, before they will even talk to you or let you pay escrow down or make an offer. Simple step. Even any house you would like to buy and call a real estate agent to show it to you. With your pre-approval letter, They know you are not just wasting there time. That is as long as you only look at housing not cost more than the letter says you are pre-approved for. This is normal home shopping. It sounds like you just found a real estate agent willing to help you make all work good for you smoothly. Enjoy house hunting. It's always fun looking for the next best,most profit deal! I am offering on my 7th rent house to buy this month now. I already offered on 3 last month,but was out bid and another got them. I was wait on 2 Government Hud homes 31 days owner-occupant to be over so I could bid. Looked them over ,had my band Pre-approval letter. Was ready offer,but both sold before the 31 days. So looked at 1 more HUD and 1 bank REO this week. I am allowed to offer on the HUD in 4 days-if it's not sold by then. Good luck!: Layman T. Scott President and Treasurer of Scott Housing & Rentals,LLC

Also jdavisj101 was correct also. If not needing a bank loan to buy a house. The like he said, You get your "Proof of Funds" letter from the bank you have the money in. For the amount you are Offering only. Not send a proof of funds letter showing ALL you have in your saving or checking account. I had to do Bank pre-approval letters for the 1st 2 houses bought.But the last 4 were cash deals,so only gave them Bank Proof of Funds letter showing I had enough in the bank to buy the house. One or the other is required if you want to buy Government Hud or Bank REO houses. Thanks; Layman T. Scott President of Scott Housing & Rentals.LLC

A Little clarity...

Insiders Cash is what i have gotten access to when i went on my 3 day train program with DG trainers in SF, Ca.

They cover the A-B of the deal & Your Buyer closes on the B-C. For a 1 or 2 day closing.
Pretty nice for foreclosure deals at a great discount.

They explain this in the video on there website...

insiderscash.com

Hi Anthony, I agree with Michael, and I share the same opinion with other RE Investors (in fact about 35 of us), who attended the 2K 3 day workshop event here in our Big City.

What we have discovered (from discussions with other local RE Investors and researching after the whole 3 day workshop was finished):

The Free One Day Event in different cities are done by a different coaching group called "Insider's Edge Financial". ("The Success Academy" coaching is done by PMI, it was the "Insider's Edge Financial" group who told me about the distinction). "Insider's Edge Financial" promoted the following:

1) 3 Day Workshop, which, I agree with you Anthony, the main selling point was ACCESS to funding through Insider's Cash 2% + $495.

-- On the 3 Day Workshop, they ("Insider's Edge Financial") promoted the following:

-- -- 1) Gold Package Advanced Coaching
-- -- 2) Platinum Package Advanced Coaching
-- -- 3) Diamond Package Advanced Coaching

-- -- These advanced coaching packages include (depending on your package choice):
-- -- -- 1) "Boots on the ground" for 3 days, a coach will fly to your city to teach you how to do deals.
-- -- -- 2) "Proptrend" a software only available to those who will sign up for the Advanced Coaching
-- -- -- 3) "Buying Summit" - they will fly you to Las Vegas to get a chance at buying properties from them that they have found, fixed, and are cash flowing.
-- -- -- 4) You will get coaching from them by phone and email.

The funding provided by "Insiders Cash":

Those who attended the 3 day workshop will be qualified to borrow from them IF THEY HAVE AN LLC. (Our Group learned this on the last 15 minutes of the three day workshop). For those 3 day workshop attendees, they also promoted an Asset Protection Program which includes setting up an LLC through a company called "Veil Corporate" for an additional $495 + State Fees. Attendees are given a flyer, with a "Code" on it (which you can use to log in at www . InsidersCash . com)

Their terms are as follows (You can verify this at www . InsidersCash . com):

Just do the math and you will see.

---------
1-3 Day Transactional Funding
---------
LTV = 100% (they can loan you 100%)
Term = 1 - 3 days (used for Double Closings)
Participation Fee = $495
Interest Charge = 2% (ONLY IF your Loan is above $150,000)
if not you pay the
Minimum Fee = $3000

For Example:

If you borrow $30,000

LTV = $30,000
Term = 1 - 3 days
Participation Fee = $495
Interest Charge = 2% does not apply since 2% of $30,000 is = $600, which is lower than their minimum fee of $3000, so instead you pay the
Minimum Fee = $3000

Total Investor's Loan or Transactional Funding Cost for a $30,000 loan
= Participation Fee + Minimum Fee
= $495 + $3000
= $3495 (which is equivalent to 11.65% of your Loan Amount of $30,000)

--------------
HOWEVER, if you borrow a bigger amount, let's say $160,000

LTV = $160,000
Term = 1 - 3 days
Participation Fee = $495
Interest Charge = 2% of $160,000 is = $3200, which is higher than their minimum fee of $3000, so for this example, you use the
2% Interest Charge = $3200

Total Investor's Loan or Transactional Funding Cost for a $160,000 loan
= Participation Fee + 2% Interest Charge
= $495 + $3200
= $3695 (which is equivalent to 2.31% of your Loan Amount of $160,000)

So I think this Transactional Funding would be okay to use for 1-3 day Loans above $160,000.

---------
1-3 Day Transactional Funding
---------

• LTV: 100% of purchase price
• Term: 1-3 days (money kept in escrow)
• Participation Fee: $495
• Interest Charge: 2% of loan amount (minimum fee $3,000)

---------
3 Months Funding
---------

• LTV: 75% of purchase price
• Term: 3 months
• Participation Fee: $795
• Interest Charge: 3% PER MONTH for EACH month the loan exists (minimum fee $5,000)

---------
2 Years Funding
---------

• LTV: 50% of purchase price
• Term: 2 year
• Participation Fee: $3,000 minimum
• Interest Charge: 1% PER MONTH (% only payment)

You can plug in all your sample numbers in a spreadsheet and you would understand why other DGers also look for other transactional funders to compare "total funding costs" for the investor.

Hope this helps. I really wish that somebody responded this way when I asked the same question in a separate forum thread. (It would have saved me 2K, and 3 days worth of billable time) Like what I said in an earlier post, I believe in "Truth in Advertising".

Good luck and happy investing!

Cris