Flipping a foreclosure

[chrisv352003]

Here is the problem I have been having and hopefully someone has an idea or two on how to get around this if there is any.  I have been flipping foreclosures for about a year and half now and what keeps happening is the bank that I am buying the home from is requiring a letter from the bank that I am going to purchase the house from to supply a letter showing that the funds will be available or if I say I am paying cash I have to show proof that I have the funds in the bank which I never do. If someone has away around that it would be great to know.  When I close on one of these deals I do a double closing and imediately sell it to some one else. I have set up a deal to where I have a note buyer who will sell off my note at the time of sale if I will owner finance but the problem is that it may take a few days for it to fund. How do I set it up for the the bank That I am purchasing the property from to wait a few days on the money while I wait for the money to get to the title company.

Any suggestions would be really appreciated

Thanks

Chris V

[tedjr]

Some banks fund fund the day of the closing and some fund days after the funding after they have actually received all the documents and have had legal gurus look them over. This is a common practice and your selling bank should understand the procedure. You should have a good relationship with the note buyer by now and you should get them to give you the financing letter you need to show proof of the ability to close. This is really becoming the norm these days i time of a lot of new investors trying to tie up property and not being able to close. Banks just got flustrated with contracts falling out because the buyer was dumb as dirt and had no idea what to do or how to get the funds to close. They started qualifying their buyers.  hope this helps some and that I answered you question. It was kind of confusing but I think i know what you are going thru. Let me know if I can help further.

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737
512-301-9171 home
512-587-6177 mobile