[Don Alexander]

Don Alexander

I am looking to wholesale a house by doing a double closing if I can’t do an assignment of the contract. I need your help and guidance.

How risky is it to use a transactional lender?

How much do transactional lenders charge?

How hard is it to find transactional lenders?

Thanks for your help.

[DON WEDE]

DON WEDE

Don,
I am a little confused. Typically there are they parties involved the seller of the property, you and then your end buyer. Is your end buyer not a cash buyer?
Don

[Don Alexander]

Don Alexander

Thank you Don,

Yes, end buyer would be a cash buyer.

Appreciate your help.

[Jackie Lange]

Jackie Lange

HI Don

You do not want to get involved with using transactional lenders. Their fees are like a loan shark. Plus you run the risk that the buyer backs out at the last minute then you are stuck with a house and a high interest rate loan.

Remember – you should to do deals where you remove as much risk as possible.

It would be much easier to just assign your contract to the buyer. You turn in the assignment agreement to the title company
the title company will pay your assignment fee. Get the buyer to pay a $1000 non-refundable earnest money deposit for the assignment. The rest is paid at closing.

[Don Alexander]

Don Alexander

Thank you Jackie. I really appreciate your help.

[Don Alexander]

Don Alexander

Thank you Jackie. I really appreciate your help. Also, Jackie, what are your suggestions for funding when you do a simultaneous close to reduce risk?

[DON WEDE]

DON WEDE

Don,
You only need to do a simultaneous close if you do not want the buyer or seller to see your profit. In the case of the simultaneous close you will have to bring your own funds to the table. If you just assign your contract then only the end buyer will know your profit.

[Don Alexander]

Don Alexander

Thank you Jackie. I need to do a lot of assignments before I have enough of my own funds.