OfflineHello Fam,
this is a question that I have had in my head for the last couple of days now. When I have a deal on the table, how do I handle the transactional funding and the end buyer?
Obviously I need to have my end buyer in place, but do I have a sales agreement with the seller, then make another sales agreement with my end buyer?
I am familiar with how transactional funding works but Im just trying to clear things up. Can someone please give me an example of how they used transactional funding with an end buyer in place?
Another question,
If i am going to use trans funding for a short sale/reo, should I shop my deal around before it gets approved so I have the buyers in place. Or should I have an end buyer already in place before a make a bid on the short sale/reo?
If anyone can help me out with this I would appreciate it.
Thanks
How do I juggle the transactional funding and end buyer at closing???
Posted on: Fri, 01/28/2011 - 21:52
How do I juggle the transactional funding and end buyer at closing???
__________________
-
- by sredman
- Login to post comments
You can bid on the property and put an escape clause (like an inspection contingency) in your contract before you have an end buyer in place, then use the contingency to cancel if you don't confirm an end buyer. However, you never want to back out of a contract if you don't have to - this is all about relationship and building a good reputation. So - it is best to have multiple qualified buyers on your list who want the kind of property you are bidding on before hand. Trust me, I had to back out recently and that is not desirable or easy!
Good luck!
Gena
Blessings & Favor,
Gena.
Follow my Blog: www.genahoriatis.com
I can do all things through Christ who strengthens me. Phil 4:13
Psalm 1:1-3
so you won't have to pay holding costs until you can find a buyer...
unless it's a fixer upper, and you need to do some work on it before selling it; then you have some time to find a buyer, but you will need to have some funds set aside to pay for it during the time that you hold the property...
Wishing you great success,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
What's the best piece of paper to use to legally lock your end buyer in when using this type of funding?
Will a standard Assignment of contract with earnest $ deposit do the trick? Although with an assignment you don't need flash funding but the question still stands. About the best paper to use to legally secure your end buyer I mean. Trying to kill 2 birds with one round heh.
If only I could remember I put a post up on the forums.