cfuller


All About cfuller

Name: 
charlie

Topics I've Participated In

TitlePosterRepliesUpdated
Ask Matt Larson A Question cbrpower4732 years 24 weeks ago
Starting a buyers list Christopher Lee...273 years 47 weeks ago
Is contract assigning is legal in my state? buffs281624 years 28 weeks ago
Attorney's Bird Dog Agreement cfuller474 years 45 weeks ago
What do you do when the property has negative equity? R.E.Budda565 years 10 weeks ago

Basic Info

No info provided.

Sites I Visit

Mainly Just This One

Guestbook

wheels

REO doc's picture

you need some wheels on that GT. you just seem like a guy who drives a GT, if you dont my bad.

REO & SHORT SALE FINANCING

This is one of the most important articles that i have run into lately. It tells how to finance REO's and Short sales. Charlie

How to Use Proof of Funds Letters in Real Estate Investment
Blog.the bubbletalk.com – 6-22-9

If you are interested in purchasing Bank owned property or short sale homes , then you need to understand the basics of transactional funding and funding commitment letters and how they relate to your real estate interests and activities.

Essentially, the transactional funding refers to the money borrowed for a very short period to transfer a property from the current owner, to the transaction coordinator, then to the new owner. Proof of funds letters are used to help secure funding and smooth the way for the real estate transactions you are involved in.

Transactional Funding
The use of private investor money allows the short sale process to take place smoothly. The basic premise for the loan is that once the original owner is ready to sell and the buyer is ready to take over the property (usually with a standard mortgage), there is a short term loan needed to facilitate the transfer period. This means that the transactional funding is a loan that exists for just a few hours, before being recovered when the final property owner pays for the property.

The two separate transactions that place on the day of settlement create a unique situation known as a double closing. Private investors like these loans as the lending period is typically just several hours. If the private funds lender ensures that all the other financing for the transfer of the property is in place, this makes this short term loan delivers a relatively low risk opportunity for a profitable outcome from the provision of the short term loan.
Private Money works not only for the short sale scenario described above. A savvy investor can structure the use of a short term loan to easily carry out purchases of real estate owned (REO) properties, or any other real estate transaction that is based around a double closing.

Proof of Funds Letters
When purchasing property, the buyer must provide some form of proof that they have the cash to cover the property acquisition - this is where a funding commitment letter becomes useful. This document that the investor can use to indicate to the parties involved in a real estate transaction that you are pre-qualified to purchase the real estate.
The proof of funds letters are used to indicate that investors have the financial resources or means to buy a real estate transaction. They indicate to the other parties that your finances are legitimate and can be used for the purchase of the property. This type of document is particularly useful if you are involved in short sale transactions and bank owned property purchases that are structured with a double closing or when using private funding. They can also be used for other transactions that require documented proof of your financial resources.
POF Letter is generally provided as a bank, security or custody statement, stating that the investor or real estate buyer has funds for the real estate purchase that are obtainable and legitimate. Using this letter, the buyer/investor is able to secure any necessary additional funding or to assure the seller that they have the cash to fund the real estate purchase.
To achieve success in real estate investing, it pays to fully understand the different options available to you and how to use them to maximum advantage. Transactional funding and the use of proof of funds letters are two added ‘tools’ in your investment toolkit. Once you understand how these financial opportunities can be used to the best advantage, you’ll be on track to achieving financial security through real estate investing.

Charlie,

Indiana-Joe's picture

Thank you for the information and insight you provide on the DG website. I look forward to reading your future posts. Continued success in all you do! Believe and Achieve! Smiling - Joe

Bandit signs

Hey thanks for the information on bandit signs. I am about to deploy my first wave of them , but I was wondering if you had any suggestions for marketing to motivated sellers using bandit signs . Or is just to attract motivated buyers

Bird Dog Agreememnt Contract

ChrisHabersham's picture

Hello cfuller,

I was wondering if you have a bird dog contract in .pdf format? I'm on my first deal but cant find the BD contract.

Thanks In Advance.

Coach Charlie,

Indiana-Joe's picture

We wish you and your family a very Merry Christmas 2010 and a happy, healthy and prosperous New Year 2011! We hope Santa brings you extra t-shirts and burgers from IN and Out Burgers this year! Smiling Your friends, - Joe and Stacey

Private Lenders

Hi Charlie, I'll like to discuss private lenders with you. Let me know the best way we can do this.

Bird dog Agreement (don't have a PDF file)

Finders Fee Agreement
This Agreement is made effective as of __________________ 20____, by and between _____________________ (Investor, hereinafter “Company“), Located at: _________________________________________¬¬___________________________________ (Address)
In this Agreement, the parties who are contracting to receive services shall be referred to as the “Company” and the party who will be providing the services shall be referred to as the “Finder” (Hereinafter to be known as the "Consultant".)
The Company desires to have services provided by the Consultant. Therefore, the parties agree as follows:

1. DESCRIPTION OF SERVICES. Beginning on _______________20____, the Consultant will
provide the following services (collectively, the "Services"): a real estate locator, referral and contact service.

2. PERFORMANCE OF SERVICES. The manner in which the Services are to be performed and the specific hours to be worked by the Consultant shall be determined by the Consultant. The Company will rely on The Consultant to work as many hours as may be reasonably necessary to fulfill the Consultant’s obligations under this Agreement.

3. PAYMENT. The Company will pay to the Consultant a fee in the following two circumstances:

(a) Property Leads. When the Consultant introduces a property to the Company and there is no real estate agent or Realtor already listing the property for sale, and the Company then purchases the property, the sum of $500.00 will be paid to the Consultant by way of a Bird Dog Fee (“the Fee”). The Consultant understands and agrees that the Fee will be paid to Consultant at the time of closing on the said property to a third party. The Consultant understands that every effort will be made by the Company to close on the Property in a timely manner.
(b) Realtor Leads. When the Consultant introduces a real estate agent or Realtor to the Company who then engages with and sells properties with and for the Company, the Company agrees to pay to the Consultant the following:

1-5 Properties: .5% of the net proceeds of the sale price of said properties.

6-10 Properties: 1% of the net proceeds of the sale price of said properties.

11+ Properties: 1.5% of the net proceeds of the sale price of said properties.

The Company requires the Consultant to provide it with an invoice at the time of closing on the properties, and the Company agrees to provide to the Consultant a draft invoice for this purpose. Upon termination of this Agreement, payments under this paragraph shall cease; provided, however, that the Consultant shall be entitled to payments for periods or partial periods that occurred prior to the date of termination and for which the Consultant has not yet been paid.

4. TERM/TERMINATION. This Agreement shall terminate automatically upon completion by the Consultant of the Services required by this Agreement.

5. RELATIONSHIP OF PARTIES. It is understood by the parties that the Consultant is an independent contractor with respect to each, and not an employee the Company. The Company's business shall not provide fringe benefits, including health insurance benefits, paid vacation, or any other employee benefit, for the benefit of the Consultant under this Agreement.

6. EMPLOYEES. The Consultant's employees, if any, who perform services for the Company under this Agreement shall also be bound by the provisions of this Agreement. At the request of the Company, the Consultant shall provide adequate evidence that such persons are the Consultant's employees.

7. CONFIDENTIALITY. The Company recognizes that The Consultant has and will have the following information:
- prices
- costs
- future plans
- business affairs

Also, other proprietary information (collectively, "Information") which are valuable, special and unique assets of the Company and need to be protected from improper disclosure. In consideration for the disclosure of the Information, the Consultant agrees that the Consultant will not at any time or in any manner, either directly or indirectly, use any Information for the Consultant's own benefit, or divulge, disclose, or communicate in any manner any Information to any third party without the prior written consent of the Company. The Consultant will protect the Information and treat it as strictly confidential. A violation of this paragraph shall be a material violation of this Agreement.

8. UNAUTHORIZED DISCLOSURE OF INFORMATION. If it appears that The Consultant has disclosed (or has threatened to disclose) Information in violation of this Agreement, The Company shall be entitled to an injunction to restrain the Consultant from disclosing, in whole or in part, such Information, or from providing any services to any party to whom such Information has been disclosed or may be disclosed, notwithstanding that this Agreement is not exclusive to the Company, and the Consultant shall be allowed to use such confidential information under identical agreement with any other third party who may be interested in purchasing the Company’s Property up to and until the time the Company have entered into their agreement(s) to consummate a financial transaction. The Company shall not be prohibited by this provision from pursuing other remedies, including a claim for losses and damages.

9. CONFIDENTIALITY AFTER TERMINATION. The confidentiality provisions of this Agreement shall remain in full force and effect after the termination of this Agreement.

10. NOTICES. All notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when delivered in person or deposited in the United States mail, postage prepaid, addressed as follows:
IF for The Company: __________________________________________________________

IF for The Consultant: _________________________________________________________

Such address may be changed from time to time by either party by providing written notice to the other in the manner set forth above.

11. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties and there are no other promises or conditions in any other agreement whether oral or written. This Agreement supersedes any prior written or oral agreements between the parties.

12. AMENDMENT. This Agreement may be modified or amended if the amendment is made in writing and is signed by all parties.

13. SEVERABILITY. If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.

14. WAIVER OF CONTRACTUAL RIGHT. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.

15. APPLICABLE LAW. This Agreement shall be governed by the laws of the State of ____________.

Party receiving services:
____________________________________________________________ [Company]

By:

Name:
Phone: (307)

Party providing services:
[Consultant]

By:

Name: ______________
Phone: _____________

Bandit Signs for Motivated Sellers

Bandit signs can be used to attract sellers or buyers. If you looking for sellers this is where you would put "We buy houses in any condition" 456-3344. or "We pay cash for houses" 456-3344.

Buy the way, my brand of paying cash for the property is this: Let's say the purchase price is $100,000 and the fist mtg. is $75,000. That leaves $25,000 equity for the seller. I ask the seller to take back a 2nd for a short period of time and pay them $5,000 to $10,000 cash so they can move and i have time to sell or rehab the property. That way they get "some" cash & i get position of the property.

BIRD DOG CONTRACT

Hstackhouse's picture

Thanks.
This will help me to get started making money to invest later.