If you're an active real estate investor in California, you know that timing is everything. Wholesalers often come to you with deals that need to be closed quickly, and if you can't perform, you risk losing the deal. In this post, we'll explore how you can quickly close hard money deals in California, specifically buying wholesale deals. We'll take a closer look at the process and the requirements needed to get funding in just a day or two.
The Importance of Quick Funding
As mentioned in the video, if you're a real estate investor in California, it's crucial to have quick access to funding. When wholesalers bring you deals, they're usually running out of time on their contract, and you need to perform quickly. Being able to close deals fast is what sets successful investors apart from those who can't perform in a timely manner.
How to Close Deals Quickly in California
The video mentions that you can close deals quickly in California if you're not doing the rehab and construction holdback. Additionally, it's crucial to work with a funding source that can close deals in a day or two. To do this, you need to establish a relationship with private mortgage funds that specialize in quick closings.
In California, it's possible to get funding for up to 70% of the purchase price for non-owner occupied business loans, with no appraisals needed. For residential properties, this number drops to around 65%. For commercial properties, it's about 60-65%. This means that if you're looking to buy a property at a lower leverage, you can expect to get funding quickly.
Requirements for Quick Funding
To get quick funding in California, you need to have all the necessary paperwork ready. This includes a loan application, two forms of picture ID, your insurance agent's contact information, preliminary escrow officer's contact information, and your LLC entity documents. Unlike traditional loans, no formal appraisal is needed, although there may be a drive-by or walk-through.
Building Relationships with Wholesalers
If you're an investor who can close deals quickly, wholesalers will start to come to you with deals they can't perform on. They may have a property under contract at a great price but can't close the deal fast enough. This is where you can come in and save the day. By establishing a relationship with wholesalers, you can get access to deals that others can't.
Conclusion
In summary, if you're an active investor in California, being able to close deals quickly is crucial to your success. To do this, you need to establish a relationship with private mortgage funds that specialize in quick closings. You also need to have all the necessary paperwork ready and be prepared to move fast. By building relationships with wholesalers, you can get access to deals that others can't, giving you a competitive edge in the market.