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The importance of dealing with investor-friendly closing agents cannot be understated! If you must deal with the domineering person at the closing agent or attorney, you could have a serious problem to start.   Too often, a closing person is knowledgeable from personal experience of doing a lot of closings but fails to get the investor deals closed.   The issue is a breakdown in communications between the closer and the investor because the closer believes the closing “steps” must be done in a certain way and the investor may not understand or agree with him.   This [...]

Real Estate Investors ask "Can I Be Sued if I Don't Close?" While anyone can sue anyone for any reason, the practicality of hiring an attorney and going to court stops people from doing this if they have an ounce of common sense. Let's look at what would really happen if you simply didn't close for any reason. If you use a “Standard” contract that your local Board of Realtor® uses, it limits your liability to the amount of your earnest money deposit. If you never give the closing agent your earnest money deposit, you should expect [...]

Too often an investor is faced with a serious dilemma if the end buyer's lender can't close timely, or close at all.  The end buyer's hard money lender should have gotten ready for the closing at least days or weeks in advance and, unfortunately, the end buyer may well believe this to be true. Many investors believe that having a hard money lender on their side to close means the deal will close timely. These investors too often tell the seller that they are “cash buyers” because hard money lenders bring cash to the closing, hopefully. Unfortunately, [...]

Transactional funding is sometimes referred to as transitional funding.   • This implies the property “transitions” from one owner to another over an indefinite time period. • While this is the process, transactional funding more precisely means that there are two distinct transactions - an A to B and B to C closing that occurred nearly simultaneously. • In most cases, the first closing takes place on the morning of the prescribed day of closing or the day before, and no funds are paid to the seller - this is called an “Escrow Closing”. • Later that [...]

It is possible to close at two different attorneys but there can be serious issues.   Usually, this two-different closing agent problem came about because the seller or the end-buyer stated that he wouldn't close except with his closing agent. If a Realtor® is involved, it's likely that this listing agent has a favorite closing agent that he likes to use - not that the seller picked this one. If the end-buyer picks the closing agent it’s likely has brought properties previously and knows what he's doing. That doesn't mean you can't get them to agree with [...]

What states have an issue with assigning contracts?   • There is a growing trend among states that want to STOP real estate investors from wholesaling properties. • The movement to stop investors from doing their deals has been a constant drumbeat of the local and national Board of Realtors®. • They believe that investors are “stealing” commissions they are entitled to and that their professionalism and access to the MLS® ensures sellers the highest possible price for the property. • There are numerous reasons every home seller doesn't just call a Realtor® and list their property. [...]

Your buyer doesn't come to the closing - Is All Lost?   What if your end-buyer doesn't come to the closing? You have only a couple of options to rectify the situation. • Number one - get his earnest money deposit from the closing agent. • Number two - get an extension from your seller and try to quickly resell the property. • Even though you put on your contract that the end-buyer’s earnest money deposit was non-refundable under any circumstances, it doesn't mean you’ll get his earnest money deposit at all • Paying out the earnest [...]

Don't just wing it when you have no seller at closing. Your options are going to be severely limited if you don't plan ahead...   You only have a couple of options to rectify the situation. 1. Forget about it and get your earnest money deposit back from the closing agent. 2. Get ANGRY and quickly take legal action. • Walking away from the deal hurts especially when you put in tons of time and effort and built a relationship with the seller. • You may have gone way above the “call of duty” to help the [...]