Investor Funding Alternatives, LLC
“Transactional Funding”
For Real Estate Investors
Summary
The Real Estate Market
Foreclosures:
- 861,000 homes lost to Foreclosure in 2008.
- Record 800k filed 1st Qtr. 2009.
- Foreclosures Lost 2009 – 1,000,000, 2010 – 1,050,000,
- More to Come? – YES – More than in 2011.
2011 Est. 980,000
- 9-10% of ALL mortgages behind on payments (Unchanged)
- Option ARM Loan Adjustments - $11B/mo. By Fall 2011)
$29B recast in 2009, $67B in 2010, Ave. Payment Increase 63%
- 24-27% 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 REO’s: Banks taking discounts
My Estimated Market Timeline:
– Foreclosures near/above current level:
– Values begin stabilizing (very regional):
12-24 months (2nd Wave?)
18-36 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 1990’s 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
PURCHASE
A
Seller
B
Investor
SALE
B
Investor
C
Buyer
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
PURCHASE
A
Seller
SALE
B
Investor
B
Investor
C
Buyer
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
PURCHASE
A
Seller
SALE
B
Investor
B
Investor
“Transactional Funding”
C
Buyer
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 REO’s
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.InvestorFundingSite.com
720-291-9100
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-Buyer’s 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.)
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 – $1,000,000
1.75 pts.
$1M - $5 Million
2.75 pts.
(Only Loan sizes > $90k)
$5M - $10 Million
3.00 pts
Proof of Funds Letter – $0.00
= MORE
Only $495 Application Fees to $1M
(Auto Generated at Website)
TO YOU!!!!
Exceptional Service for
Transactional Funding
Investor Funding Alternatives, LLC
www.InvestorFundingSite.com
Ted Akers
720-291-9100