Transactional Funding in Dade, Broward and Palm Beach

Using Transactional Funding in Dade, Broward and Palm Beach

Local real estate investors using Transactional Funding in Dade, Broward and Palm Beach in Florida are at the epicenter of the nationwide foreclosure and short sale market. Doing real estate transactions in short sales and purchasing bank-owned or REO properties can be challenging if an investor doesn’t have money to do the actual buy and close on these properties.

Typically wholesale profits are made when the investor puts a property under contract with the property owner (designated as the “A” seller) and then sells the same property to an end-buyer (“C”) to complete the double closing. The transaction is designated as an A – B and B – C closing where the investor is designated as “B”.

Many closing agents recognize that if the A – B transaction uses the end-buyer’s money to close the A – B “leg” the transaction can be an illegal flip unless both the Seller (A) and the end-buyer (C) are disclosed this in writing and both parties agree. This can be a deal killer in most cases as the A party immediately thinks the investor resold the property for a HUGE profit, no matter how large it is, and the end-buyer (C) feels he was charged too much.

Especially where the wholesale profit is over $15,000 +/-, the investor has two options to fund the A – B closing even if it is at another closing agent than the B – C leg’s closing. This is a hard money loan which can be very expensive or he may be able to use transactional funding which is very inexpensive.

Transactional funding is where the funder of the A – B leg wires funds needed to close to the A – B closing agent. This amount is the full amount (100%) of the net due from the buyer (B) that is due on the HUD-1 Closing Statement (Line 303). As an example I am sending in almost $300,000 to a closing agent in Orlando for the A – B closing on a property while the investor (B) and the end-buyer (C) are closing with a local closing agent in Miami.

If the contract from the seller (A) cannot be assigned per the terms of the original contract with the Seller (A), the best alternative is to use transactional funding to complete the deal with no money out-of-pocket for the investor and to keep both A – B and B – C transactions legal.

If an investor asks the closing agent if he does “double closings” often the agent or attorney will say they are illegal. Unfortunately, these likely well-meaning but uninformed people are trying so hard to protect themselves from a non-existent liability that they kill many deals. Transactional funding overcomes this issue as the investor can now close the A – B leg anywhere in the country and close the B – C leg in Florida.

Miami, Ft, Lauderdale, Coral Gables, Plantation, Davie, Sunrise, Coral Springs, Pembroke Pines and every other city in the tri-county area using Transactional Funding in Dade, Broward and Palm Beach  have short sales, REOs, probates, and other types of motivated sellers who can be great candidates for investors who want to get wholesale properties. Using transactional funding insures that these deals can be completed with no monetary requirement from the investor for the A – B leg.

To your limitless success,
Dave Dinkel

About Dave Dinkel 27 Articles
Dave Dinkel graduated from the University of Florida in 1968 with a BS in Chemical Engineering. He initially worked for a petrochemical research and development company in Illinois. Later he entered the financial arena as a stock and commodity broker with Merrill Lynch.While a stock broker he became a Certified Financial Planner and later started his own brokerage firms and stayed in the financial services industry for 22 years before retiring to pursue his love of real estate investing. After retirement, and because of his interest in business start-ups, he worked with a small company for a few years while driving their sales from under $12,000,000 to over $150,000,000 annually before going back to full-time real estate investing.Dave Dinkel has been a national platform speaker, contributor to local real estate clubs, mentor and consultant to numerous real estate investors and all the while running his own real estate business. Mr. Dinkel received the following degrees or designations: BSChE, FINOP, CFP, MSRP, RSP, RR, ROP, SROP, MGA, GA, Certified Estate Planner, Licensed Mortgage Broker, and Licensed Insurance Agent. He is often referred to as the “Teacher of Teachers” and his Mentoring continues to produce Students who go on to be national real estate "Gurus". .He has been a real estate investor since 1975 and recently received the first-ever Lifetime Achievement Award for Contribution to the Real Estate Investing Community. While being active in real estate investing for over 40 years, he and his wife Nancy have been married for over 52 years. He is most well known for the development of his Mentoring Program that has been called, "The Best Mentoring Program in the Country" which he continues today.In addition to his Mentoring Program, he started a full-service transactional funding Program so that new investors had the ability to do deals with no money of their own. He challenged the funding industry by making borrowing money very simple with his "One Point Funding Program" which has revolutionized the transactional funding industry and made millions of dollars available to investors who otherwise could not have afforded it. Currently his transactional funding is only available in Florida.Get more information about his real estate investing mentor program at http://www.DaveDinkel.com