Presentation on theme: "Investor Funding Alternatives, LLC Transactional Funding For Real Estate Investors Summary."— Presentation transcript:
Investor Funding Alternatives, LLC Transactional Funding For Real Estate Investors Summary
The Real Estate Market Foreclosures: - 861,000 homes lost to Foreclosure in Record 800k filed 1 st Qtr Foreclosures Lost 2009 – 1,000,000, 2010 – 1,050,000, 2011 Est. 980,000 - More to Come? – YES – More than in % of ALL mortgages behind on payments (Unchanged) - Option ARM Loan Adjustments - $11B/mo. By Fall 2011) - Option ARM Loan Adjustments - $11B/mo. By Fall 2011) $29B recast in 2009, $67B in 2010, Ave. Payment Increase 63% % of all homes are under water (Value versus Debt) % of all homes are under water (Value versus Debt). - Unemployment: 26 yr. high 10.0% - Now Around 9%. Recovery? – Not without jobs! BAD NEWS above means OPPORTUNITY for you! Short Sales: More RE Investors are actively pursuing Bank REOs: Banks taking discounts My Estimated Market Timeline: –Foreclosures near/above current level: months (2 nd Wave?) –Values begin stabilizing (very regional): months
What Do We Have? The Perfect Storm Leading to Real Estate Opportunities!!
Upcoming Waves of Foreclosures Potentially LARGER Foreclosure waves Mid 2010 and Mid-Late 2011
The Next Big Wave
Your Opportunity Not since the RTC in the early 1990s have investors had such an opportunity (Most of us could not participate – mostly commercial properties and large cash needed) Great opportunity NOW to Flip for CASH: –Short Sales, REO, Pre-foreclosure, Foreclosure What to Do? - Get Educated!! - TAKE ACTION: Find Buyers, Find Motivated Sellers, MAKE OFFERS
The Business of Flipping Real Estate Investors contract to purchase and to resale property. Investors need funding for the Purchase: Timeframe: Funding Options: –Rehab = Private Lender/Hard Money –Same Day Resale = Transactional Funding –1-35 days Resale = Extended Transactional Funding
The Purchase & Resale Transaction ABBC SellerInvestor Buyer PURCHASESALE If purchased AND Sold Same Day = Transactional Funding. If required to hold up to 35 days before resale = Extended Transactional Funding.
The Old Way Simultaneous Dry Closing ABBC SellerInvestor Buyer PURCHASESALE Buyer C $$$ used to close the Purchase from A to B (No $$ from B Wholesaler) (We can no longer Float Funds from C)
The New Way Back-to-Back/Separate Wet Closings ABBC SellerInvestor Buyer PURCHASESALE Transactional Funding Buyers Funds or Loan
The Current Reality Changes: by Banks, Title, and State Law No more Dry Closings without Wholesaler $$$ to complete the Purchase and Banks require Proof Of Funds submitted with offers. Now Requires Wet Closings: Shortsales Many REOs Other Wholesale deals – Avoids Assignment Fee Issues We provide a legal way for you as a Wholesaler to complete a same day or extended term Purchase and Resale.
The Solution to the New Way Investor Funding Alternatives, LLC www. I nvestor F unding S ite.com
What is Transactional Funding? A 100% liquidity Purchase Funding. It is not a traditional Loan – it is Providing Equity Capital. NO QUALIFYING – No Credit or Income for same-day deals. Conditioned on the same-day B to C Sale Transaction closing, or a fully approved buyer for Extended Transactional Funding. Also know as Flash Cash, Dough for a Day, or Flip Funding. Much less expensive than Hard Money. The Legal Way to accomplish Wholesale Flips. Another Tool in your belt.
Qualifying NO Down Payment - 100% LTV (including Closing Costs) NO Credit Check for same-day transactions Poor Credit/BK/Foreclosure - OK NO Financials You Provide Only: Purchase and Sale Contracts and Title Your Business Entity evidence (Must be an Entity) (LLC, Trust, Corp, Partnership, LP) End-Buyers Funding – Mtg. Approval or Cash End-Buyers Funding – Mtg. Approval or Cash
Investor Funding Alternatives SERVICE First – To Build Relationships! Fast Commitments & Funding Our Title or yours (no Fee increase for yours) (Purchase and Sale to be at same Title Co.) (Purchase and Sale to be at same Title Co.) Lowest Funding Fee Low Administration Fee Lower Minimum Fees on smaller loans Much Lower Funding Fees above $1M On-Line Proof of Funds Letters On-Line Funding Request
Transactional Fee Schedule NO SET-UP FEES $ 20,000 – $90,000$1,800 Flat Fee $90,001 – $1,000, pts. Only $495 Application Fees to $1M $1M - $5 Million2.75 pts.(Only Loan sizes > $90k) $5M - $10 Million3.00 ptsProof of Funds Letter – $0.00 = MORE (Auto Generated at Website) TO YOU!!!!
Exceptional Service for Transactional Funding Investor Funding Alternatives, LLC www. I nvestor F unding S ite.com Ted Akers