hardmoney lenders - Posted by Lezlie(TN

Real Estate Investing
1

Posted by SteveS(CPA) on April 26, 1999 at 09:33:49:

I live in Clarksville, TN

but I buy houses as far as Knoxville, TN

mostly in Nashville.

2

hardmoney lenders - Posted by Lezlie(TN

Posted by Lezlie(TN on April 23, 1999 at 19:21:29:

Is there anyone on this site or know of any hard money lenders? I like to buy them and flip retail. Can’t do it in my state unless you actually have title. Can’t do it at a double close either. thanks for any help.

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Re: hardmoney lenders - Posted by JohnBoy

Posted by JohnBoy on April 23, 1999 at 23:18:24:

If you do a double closing then you would be taking title in your name. It would only pass to you for a few minutes and then be passed on to your buyer, but title would actually transfer to you first in a double closing. I think someone that is telling you this doesn’t know what they’re talking about.

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Maybe some others know the answer here! READ this guys! - Posted by Jim IL

Posted by Jim IL on April 23, 1999 at 22:56:39:

Leslie,
I don’t mean to sound, “flip”, (pardon the pun), and I may be WAY out of school here, but…
Are you sure?
When I started, I was told by two attorneys, and 3 title companies that I could not do this either.(these were company policies that no one could document, and I was only told this because they had NEVER done them “yet”)

Then, we found out differently.

A few months and a few dollars later, I now think these attornies and title companies were dead wrong. (not think, I KNOW!)

Is it a law there in Tn?
If so, where?
Look it up, and be sure.
I have a hard time imagining that a practice that is done LEGALLY in all the other states is illegal to do in one state???!?!
And, if you find out more, PLEASE pass it along here.
We’d all LOVE to learn about it and see it written in some lawbook.
Could be better than reading the “funnies”.
Good luck to you, and thanks for anything further you can provide.
Jim IL

P.S. And, one last thing, “who” told you that you cannot do this in Tn? Just curious.
What profession are they in?
Title company employee?
Attorney?
RE agent/broker?

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Re: hardmoney lenders - Posted by Lezlie(TN)

Posted by Lezlie(TN) on April 24, 1999 at 07:10:41:

Here is the situation,
Put a house under contract, found a buyer the title company needs to issue two clear title commitments — one for me from my buyer, and one for me to my seller. I need to keep these two closings separate for obvious reasons. I plan to do a dry cash close with my seller and that isn’t a problem. The title company has a problem with issuing me a clear title commitment to give to my buyer. They say my seller has to be on the commitment because when they do the commitment (before the double close) they are the recorded owners. therefore, my buyers lender will see the whole transaction and doesn’t want to participate because it’s considered a flip, which we have been told is illegal in TN.

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Re: hardmoney lenders - Posted by SteveS(CPA)

Posted by SteveS(CPA) on April 24, 1999 at 22:45:12:

Lezlie,

I don’t know who told you flipping real estate is illegal in Tennessee, but they are absolutely wrong! It fustrates me sometime when people do not understand something they say it can’t be done or worse illegal.

Anyway, I live in TN and flip properties all the time. I’m not sure I understood everything that was going on with your situation. But you do have some options:

  1. Just assign the contract to the new buyer

  2. Do a nothing down on the first closing then sell it at the second closing

  3. Find a smarter title company or have your attorney explain it to them.

Hope this helps. If you need any further help just email me.

Steven S
C.P.A.