Flash Funding is a 1 day Dual Funding that consummates short sale or Reo and flip transactions allowing "you" to simultaneously close to your end-buyer.
In this crazy real estate and mortgage market the days of â€œdry closingsâ€ is over. Title companies do not want to conduct simultaneous closings any longer because of the intense scrutiny from State and Federal regulators. They require that the first closing â€œstand aloneâ€, by the investor bringing their own funds to the closing table. So what do you do if you donâ€™t have the cash? Hard Money? No way! Spending upwards to 8 points or more on this type of transaction is insane.
The solution is FLASH funding! Our process is fast and simple:
-FREE Transaction Analysis
-Use our money to close your REO/SHORT SALE FIRST! (A-B)
-No Credit Checks
-FAST 24 to 48 Hour Setup
* You MUST Have the End Use Buyer Lined Up To Close. Money is Available For 24 Hour Period (Both Closings Must Be Coordinated For Same Day)
Flash funding is the accepted method of short term
financing necessary to fund the A to B transaction legally and
Flash funding is much cheaper than Hard Money and more profitable than not being able to close at all! Fees are based on HUD and start at 2% and up. For details contact us, e-mail me at firstname.lastname@example.org
It isn't illegal to do a concurrent close on an escrow. Given how unpredictable loans are these days it's not easy. I recommend one of the properties closing before the other and leasing back a few days to achieve a smooth transition between closings. I think it makes it a lot less hectic.
Realtor and Eco Broker
Keller Williams Wilshire
The Reavis Group
As the John indicated it is not illegal.
We many times put in our offers that the closing be concurrent, but in practice it is sequential (the first must close before the second), sometimes it is on the same day but many times it is one day later. For them to close on the same day it is more likely to happen if both transactions are held at the same escrow and the same title company and if they second property is in a county that has a second, afternoon or late recording. This makes it easier for the set up, the balancing and the recording.
I have closed transactions that are not with the same companies but there has to be great communication between everyone.
Information is the key to great decisions.
Diana Margala 909-945-5763
Great question. It is not illegal, per se but in practice it really isn't possible. This could depend on your local county's policy on deed recordings.
State law requires that escrow and title have "good funds" before they can release money. What that means is that an escrow or title company must actually confirm receipt of funds before they can move it to the next party. When an escrow closes the money must be transferred from the title company of one escrow to the title company of the next escrow. This is normally done with a wire transfer and it often takes two or three hours to confirm that the funds have been received. So, here's how it looks:
Deed records at 10:00am
Wire is sent to escrow #2 at 10:45am
Wire is received at 2:00pm
Deed is recorded asap. This is where the hangup occurs.
Some counties have deadlines for recording. The deadline is often as early as 10:00am. With a 10:00am deadline there is no way the second escrow can record on the same day.
Check with your agent or escrow company.
Dilbeck Realtors, GMAC