We work mainly with real estate wholesalers, i.e. those who have good deals ready to go but who lack the cash to pull it off. The deals often involve troubled properties, i.e.
A. Clouded titles
C. Overdue loans
F. Pre-foreclosure (NOD/Notice of Default)
G. Double closing issues, i.e. same day back-to-back escrow(s) may not be doable for some reason. The vast majority of the deals we fund are of the double-close variety.
We are private investors; we invest our own funds; we do our own underwriting; we provide capital for use with non-owner-occupied investor (NOO) properties in 50 states & DC; we write the checks; we are not brokers; we must be in first position on the deed/note that gets created.
Assuming the deal is right (i.e. meets our criteria), we are prepared to provide the following:
1. 100% funding with no out-of-pocket money required by the wholesaler
2. No: credit check, monthly payments or appraisals
3. We provide funds for up to 60% of LTV to (current) Fair Market Value
4. Deals above 60% LTV/FMV: They are possible if you can secure the overage needed from other sources such as owner financing, private debt/equity, etc.
5. Our funds are normally used for transactional funding deals, i.e. double closes/back-to-back escrows, and thus are usually committed for 30 days or less
6. Once all requested docs are received/approved, we wire funds in 8 working days or less in most cases
7. We not charge any upfront fees, etc. We pay all costs for underwriting, real estate attorney due diligence, backroom paperwork costs, referral fee(s), etc.
8. The wholesaler covers all their own costs (double close, title, escrow, other closing costs, etc.)
Summary: You bring the right deal, we provide all the funds; both escrow are opened, then closed; we do a 50/50 profit split. Again, we charge no upfront fees.
4 Math Examples
The property you wish to wholesale flip (not ARV/rehab) has a current Fair Market Value (FMV) of $200,000. You can acquire it for $120,000. You have already lined up exit strategy money (i.e. cash buyer). However, you don’t have the purchase money needed ($120,000 in this case) and come to us for 100% funding. Here are some scenarios to think about:
a. You sell the property for full FMV price, $200,000. Potential gross profit: $80,000 ($200,000-$120,000). Once both escrows close, Lender receives $160,000 ($120,000 payback of the initial capital outlay + $40,000 (50% of the profit). The wholesaler receives $40,000, as their 50% share of the $80,000 profit.
b. You sell the property for a slightly discounted price, $190,000. Potential gross profit: $70,000 ($190,000-$120,000). Once both escrows closes, Lender receives $155,000 ($120,000 payback of the initial capital outlay + $35,000 (50% of the profit). The wholesaler receives $35,000, as their 50% share of the $70,000 profit.
c. You co-wholesale the property to a buy-and-hold real estate investor for a discounted price of $180,000. Potential gross profit: $60,000 ($180,000-$120,000). Once both escrows close, Lender receives $150,000 ($120,000 payback of the initial capital outlay + $30,000 (50% of the profit). The wholesaler receives $30,000, as their 50% share of the $60,000 profit.
d. You co-wholesale the property to another wholesaler or rehabber for a discounted price of $170,000. Potential gross profit: $50,000 ($170,000-$120,000). Once both escrows close, Lender receives $145,000 ($120,000 payback of the initial capital outlay + $25,000 (50% of the profit). The wholesaler receives $25,000, as their 50% share of the $50,000 profit.
Other Important Information You Should Know
A. Minimum Profit to Lender: $20,000. Please note that our investors will not fund deals that result in profits to Lender of less than $20,000. Please take this into account when you are submitting docs and forms to us, i.e. Deal Work Up form, Application, etc.
B. Virtually all of our deals involve Transactional Funding (TF): TFs are proving to be more and more problematic in different parts of the country. So, in order to assist in that regard, we offer SMTF (Slow Motion Transaction Funding). This allows the flipper up to 30 days to complete the double escrow needed to pull off a SMTF. However, usually both closes take place in a few days or a week or two. The cost of our money is the same for one day as it is for 30 days. Our view is the sooner both escrows close, the better.
C. You can use our funds to purchase properties that others often won’t touch, such as those with clouded title or overdue tax liens, or to bring a property out of probate, etc.
D. Cross collateral opportunities. We are open minded to allowing you to pledge a property you own free and clear as collateral to purchase a second property, as long as the deal meets our normal quick payback, exit strategy terms.
I hope the above information proves helpful.
We fund in all 50 states and DC, with the following parameters:
* Joint Venture: you bring the deal; we can bring up to 100% of the money; we split the profits 50/50
* No points, no interest, no monthly payments. Not a loan. Funding is a Cash-on-Cash, JV investment
* Employ our capital for quick wholesale flips via back-to-back escrows
* Transactional Funding (double close) capital available
* Up to 60% LTV (Loan to Value) of FMV (Fair Market Value); NOT based on ARV.
* No upfront or hidden fees; fast funding decisions
* Funding normally occurs in 6-8 working days, not weeks (for qualified deals)
* We do not require an appraisal, credit check or income verification
* N.O.O. (Non-Owner-Occupied) only, investor-owned properties
* Investment must be secured by a 1st position note/deed
* Minimum profit to EMD Funding on any deal must be at least $20,000.
Why you and/or your clients should use us to fund your wholesale flip deals
- It is directed at those who cannot secure the funds they need through normal investor-
financing channels. Reasons may include: low FICO score; short amount of time involved; funded amount too small; lack needed cash; clear up title issues; cash for a hot pre-foreclosure buyout deal
- We make quick wholesale flips possible, that were previously not doable
- Use our funds to get past temporary cash flow hurdles
- Pay overdue: taxes, liens, HOA fees, probate fees, etc.
- Use our funds for building permits, closing costs, materials
- Pay off a small note so property can be sold or refinanced.
- Don’t tie up your personal capital, use ours
- Allows wholesalers to leverage themselves into more deals
3 main ways that REIers use JV Funding to their advantage. Use our capital to:
1. Quickly wholesale a property if the math works out OK. The wholesaler just has to make sure they have already lined up exit strategy money to get funding out of the deal in a timely fashion.
2. Save an investor property, and the equity tied up in it, from imminent loss due to a looming foreclosure, overdue lien coming due very soon, court judgment, get a property out of probate, clouded title, etc.
3. Back to back escrows (double close); REIers can use our funds for their transactional funding needs
Contact info:Phillip Walker, email@example.com, 707-342-0872