HI all, we have a very difficult situation to overcome.
Our scenario is this:
We are working on an REO Deal using Hard Money from Insiders Cash. At present, we are expected to sign a 7 day contract to close in 30 days. We want to have the realtor extend our inspection and loan application time from the 7 days currently contained in the contract to 14 days. Even at this, because of the process required in the steps, as follows:
1. Sign the contract (starts the clock)
2. Lock up a buyer with contract b (which could take several days to a week) we are new at this!
3. Then submit the request to Insiders Cash (my understanding is that we must have a buyer in place to be able to submit the funding request)
4. Insiders Cash then, by direct information I got over the phone from them, takes 10 to 14 days to approve the deal and give us a yes or no answer on the deal.
In our minds, my partner’s and mine, this is a no win situation.
Following the steps of this deal; We sign the contract, the clock starts ticking, we spend even one day locking up the buyer on contract b, then submit the request to Insiders Cash.
They in turn will get back to us in 24 to 48 hours with their request of additional information needed for them to begin their due diligence work and possibly have us a reply in 10 to 14 days.
One only needs to add up the time involved to see that we will be well outside the terms of contract even if we can get 14 days. And as everyone knows, breach the contract - loose the earnest money.
Can someone one help us make sense of this or is this just not a doable thing? Because from what we were told in the workshops, this should not be a problem, yet I can’t wrap my brain around this to think that it is anything but a problem.
Is anyone actually using Insiders Cash for REO deals, and if so, how do we make it work?