KwkKash Funding provides 100% loan to value funding specifically tailored to your Short Sale, REO, and other Back to Back closing needs.
These short-term deals are commonly referred to as ABC closings. A Double-Closing (or Back to Back Closing) Transaction is one in which you, the Investor (Party B), contract to purchase a property at one price from a Seller (Party A) and contract to sell the same property immediately to a qualified End Buyer (Party C) at a profit to yourself.
KwkKash Funding provides 100% of the funds to close the A to B Transaction, or your purchase from the Seller. The diagram below depicts a sample transaction (in this case a short sale, however the same principles would apply to any other ABC deal) whereby all the relevant parties are depicted. Note that there are two distinct transactions (or legs of the deal) taking place, the "A to B" leg and the "B to C" leg.
Why do I need Funding?
In today’s real estate environment, more and more Investors are finding that their ABC type deals are failing due to problems closing the B to C leg of their 3-party deals. In many cases, title insurance issues, state laws, or more stringent underwriting guidelines of the End Buyer’s lender are making it more and more difficult---if not impossible---to close your deals without bringing your own “wet funds” to the table to purchase the property from Party A and take full legal title before completing your sale to Party C.
Many Investors don’t have “wet funds” available or who do not want to use their own funds to close their A-B purchase. For these investors, there is Kwkkash. Kwkkash funds 100% of your purchase so that you can take title to the property and complete your sale to the end buyer without complications.
What does Kwkkash require? What is the funding process?
Kwkkash provides you with 100% of your funding needs for your A to B purchase transaction. Kwkkash's funding decision is made based on your transaction, not based on your personal finances. Therefore, we need only the following documentation from you to set up your funding:
What we need from you:
- Amount of money you need to borrow
- Proof of your control or interest in the property: memorandum of trusts, notice of option or deed
- A to B Contract: first closing (where you are the buyer)
- B to C Contract: second closing (where you are the seller)
- Copy of the Short Sale Approval Acceptance Letter
- Closing Location (name of closing agent and contact information)
- Closing Date
What does KwkKash charge?
Kwkkash’s fees are simple and affordable:
- 2 points (2% of the total sum borrowed) for all amounts or a fixed fee of $1500, whichever is higher. For example, the fee for a 120k transaction would be 2%, or $2400.00; whereas for a 60k transaction, the fee would be $1500.00)
- $395 administrative fee (includes wiring costs, etc)
What is the timing? How much lead time do I need to give KwkKash?
KwkKash requests that you submit your full documentation as soon as possible. We generally ask for at least 48 hours prior to funding, however with previous clients we can even do same day funding.