III . Summary of the WDCFCT Program
A . Our funding is available to REW Pros who have a fully qualified , double close wholesale deal that is ready to go , but they are short of the critical capital needed to go forward ( i . e . for the purchase price ), and / or there are CTI issues involved , etc .
B . The REW Pro must have previously and successfully completed three or more real estate deals . For those who have NOT successfully finished three deals on their own ( or with a mentor ), we strongly suggest that they partner up with a mentor ( who HAS the prerequisite experience … three or more completed deals ). They can , for example , form a joint venture partnership whereby both parties benefit from the involvement of the other .
C . Joint Venture details : The CTF / WDCFCT Program functions as a Joint Venture Partnership ( JVP ) between the REW Pro ’ s legal entity ( LLC or Corp .) and CTF ’ s LLC and / or CTF ’ s funding arm , The Edith Capps Trust ( TECT ).
D . We normally run the ( wire transfer ) funding for all deals through TECT , however the final decision about whether we opt to fund via TECT or from another one of our sources is at our sole discretion .
IV . Process issues , example
A . The wholesaler ( our JVP ), brings a profitable , double close deal :
1 . The JVP has the property under contract with a Distressed , Motivated , Flexible ( DMF ) seller ( homeowner , landlord ).
2 . The JVP has the property under contract with a cash buyer , who has the money and is ready to purchase the property from us = our exit strategy .
3 . The minimum profit requirement on any deal is $ 40,000 ($ 20,000 to out JVP , $ 20,000 to CTF ), after deducting 15 % fixed overhead costs , which is based on the funded amount provided by CTF .
B . Double Close Process :
1 . There are three separate parties involved in double close deals :
a . Seller b . Wholesaler ( our JVP ) c . Cash Buyer = Source of the exit strategy money
2 . There are two separate escrows / closings :
a . A to B b . B to C
3 . The two separate closings involved are AB & BC .
4 . The normal sequence of events , for a typical double close deal , is as follows :
a . The JVP assigns both ( seller and buyer ) contracts to CTF prior to the opening of both escrows . b . C puts their money into the BC escrow first . c . B puts their money into the AB escrow ( funded by CTF ). d . If there are CTIs involved , then each of those needs to be paid from the “ B ” funds . Once the property has 100 % clear title , then : e . AB escrow closes . f . BC escrow closes . g . Final docs are sent out to all parties ; all monies due are wire transferred to all respective parties .
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