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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