How do you perform fast closing?

Bird Dogs, Wholesaling
1

Hey guys,

I am into buy and hold and having a challenge dealing with some wholesalers who will only want 7-10 days fast closing. Since I want to hold, I am getting conventional loans and they usually take much longer time to process.

How do you guys perform fast closings? I see ads that promise few days closing, are they all using HML?

2

I would venture to say that you need one of the three:
Cash
HML
Line of Credit

Then after you take possesion you put it into a long term mortgage and get your cash out of it and replinish your resources ( HML, LOC). I think thats the best way to close fast. Having a solid amount of cash in REI is king. With cash you can move fast, then just pull it all out when you get it under a mortgage and go do another one! Hope this helps

3

Absolutely :slight_smile: thanks for the explanation

4

Xjoker,
This may sound dumb but how to you put a cash close under a long-term mortgage and get your cash back?
Newbie looking to build knowledge - thanks!

5

You would need to refinance it

6

And obviously since that would be post-rehab the appraisal would come in higher than what you paid, and after you pay off your expenses, you get the cash difference in you pocket?

Am I on the right track?

7

Pretty much yes. Of course you need to account for the extra expense associated with HML as part of the rehab cost.

8

I have a challenge with this too. Not that I don’t like short fuse deals–it’s just that I like to control how short the fuse is.

Hey wholesalers, try writing in an extension contingency in your contracts. If you can extend it without extra costs, great. If your sellers balk, then offer to pay a per-day, per-week, or per-month extension fee to keep the contract active. You’ll have more time to market your deals and give us assignment buyers a bit more breathing room to finance and close a deal before the contract expires.

Just my 2 cents.

Jimbo