In wholesaling, there’s this simple yet very effective tactic that can help you do more deals and make more money. If you’re excited to know what it is, you’d be delighted to know our special guest will talk about it in detail in today’s show.
Matt Bell is an exceptional wholesaler who’s been in the wholesaling business for 7 years now. Having bought and sold a staggering 6, 000 properties over the past 4 years, there’s no doubt he knows what he’s doing.
In today’s show, he’ll candidly share some of the tactics he did and discuss in detail one technique he’s considered an expert in: transactional funding or double closing.
Have a pen and paper handy. Today’s show is packed with all the information you need to know about double closing—what it is, its pros and cons, why it’s considered a game-changer, and why it pays to have a pro like Matt on your team!
- What transactional funding or double closing means
- What a proof of fund letter does
- What deal verification is for
- The benefits of working with a transactional lender
- What a typical deal for him looks like
- What people who are new to double closing need to know
- One of the best ways to re-negotiate a deal
- Transactional lending tricks and tips
- Advice he’d give to listeners
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Tom Kroll: Hey guys, welcome to another amazing episode of Wholesaling Inc. My name is Tom Kroll, your host for today’s show, and we are going to deep dive a really great subject that is going to help you do more deals. More deals, more quickly, and a more effective way, make even more money per deal using a super simple little tactic that a lot of people have a lot of questions about. So I have an amazing guest with me today guys, and we are going to deep dive this. This is the no fluff, no BS zone, so we’re going to get right to the meat and potatoes. If you don’t know what wholesaling real estate is, you are about to be blown away because wholesaling real estate is the best way, the quickest way, that I know of to make a fortune in a really, really short amount of time.
Wholesaling is simply the art of consistently finding discounted properties. Don’t care what your exit strategy is. I don’t care if you want to assign a contract, I don’t care if you want to buy a house and resell it quickly or hold it as a rental or rehab it. It doesn’t matter. If you can get good at finding discounted properties in your neighborhood or in someone else’s neighborhood, you are going to be financially free in very short order. So let’s get on with today’s show guys, I’ve got a special guest with me here today. His name is Matt Bell and his name has been running around this industry for a long time. All of the top wholesalers are using this guy. I’ve heard nothing but amazing, amazing results from what he does and it’s going to make a big difference in your business right now.
And what we’re going to be talking about today is double closing or transactional lending and why you should do that if you’re not, or maybe you should consider doing it and what the benefits are, the pros, the cons, the good, the bad, and the ugly. And Matt Bell is an expert at that and there are so many benefits that go along with this. Things that we’re going to talk about, about how when you use a transactional lender, how they look at the deal for you. So you don’t even really… If you have no experience, they can help you look at the deal more closely. It’s really an amazing topic. You know me guys, I’m going to make it super easy for you, so don’t worry about if you don’t know what double closing or transactional lending is, don’t worry about it. We are going to keep this super high level and really, really easy peasy lemon squeezy. So let’s get started. Matt Bell, can you hear me?
Matt Bell: I got you Tom. How are you today?
Tom Kroll: I’m doing very well my friend. Thank you so much for agreeing to be on this podcast. I know that you are a top guy in the industry and you did not have to do this. So I really appreciate your time today and letting me pick your brain about this really interesting topic and what it’s all about and how it can make wholesalers even more money and allow them to do more deals and keep them further out of their business instead of creating a job. So I love everything about transactional lending and double closing and all this good stuff. Before we deep dive in, can you just tell us a little bit about yourself and what you do and how you got into this business?
Matt Bell: Sure, yeah. Happy to be here. I’ve been in the business for seven years. I’ve got a little bit of a mixed background, a lot of renovation, a lot of wholesaling. I’ve bought and sold over 6,000 properties in the past four years and have found-
Tom Kroll: Four years, wait a second, wait a second. I got to stop you. Did you say 6,000 properties?
Matt Bell: That’s accurate. Yep. I was-
Tom Kroll: You guys, 6,000 properties. Remember guys what Jim Rohn teaches us is that you are the average of the five people you spend the most time with. Get around this guy, Matt bell, that is absolutely astronomical. It’s a matter of fact. I don’t know if we’ve had anybody on the podcast, ever in the whole history of all of our shows, who’s done that many deals. So Matt that’s a significant achievement. That’s amazing brother. Congratulations.
Matt Bell: Well, thank you. I appreciate that. We’re awfully proud of it. It’s a big business and it moves fast and gosh, it’s an awful lot easier to wholesale than it is to renovate and teaching new people the right way to go about it, certainly.
Tom Kroll: You guys, did you hear what Matt just said? After 6,000 transactions, it’s easier. What easier means is that it’s easier to build a business that is a servant to you and your family, instead of creating a job when you’re wholesaling instead of rehabbing. So I love it. Good words of advice. All right, so let’s deep dive this subject, Matt, because a lot of people have a lot of questions about what is transactional closing or what is double closing? What’s transactional lending? What does it mean, why would you use it? Can you tell us a little bit about what transactional lenders do and why it’s a good thing? And can you just fill in our listeners to exactly what this big word transactional lending actually… What does this big term even mean?
Matt Bell: Sure, yeah. Well, it takes the single closing and makes it two closings and allows you to have privacy with the end buyer, where they don’t know how much you’re making. Unfortunately a lot of investors and backend buyers, at the end of the deal, get really frustrated when they see that you’ve made a really good assignment fee. They feel that maybe they’re being taken advantage of. They get emotional and I just want to avoid that whole thing every time, personally. And how you do that is you close it and then you resell it. So they’re buying it for whatever your agreed upon price is.
Tom Kroll: I love that. It’s a really good point is that guys, so transactional lending. Yeah, it’s a, it’s something that I do now, all of my properties I actually purchase. A lot of people ask, you know, Tom, do you, how many assignments do you do? And I have to always say, you know, we buy almost all of our properties and this transactional lending is a really, really great tool to allow you to do that. So if you’re just starting out and you’re on rock bottom and you’re like, “Hey, you know what, I’d love the financial freedom of wholesaling or I’d love to be able to wholesale and get into this, but I just don’t have any money or I have really, really bad credit”. So where would I get the money to buy the home if I was going to do a double closing?
And by the way, guys, the title companies, they take care of all this stuff so you don’t have to worry about if you understand really what a double closing means. It just means that you buy the property and then three seconds later you sell it. But sometimes the regulators want you to do that. Or you know, your attorney will say, “Hey, it’s better in this state to buy and then resell”.
Or sometimes like Matt said, you want to not disclose exactly how much money you’re making either to the seller or to the buyer if you have a big assignment check. So if you’re worried about this, Matt, let me ask you, for our listeners who they don’t have any money, they’re nervous about putting a house under contract. I have a lot of questions. First of all, let’s just clear the air. If I accidentally put a house under contract and I don’t have the money or something like that, do I have to buy the house? And the answer I’ll just answer for Matt is no, but let me ask you this. What if they have bad credit and they have no money at all? Can transactional lending help those people?
Matt Bell: 100%. Bad credit, no money at all is not relevant in the transactional funding world. It’s based on is it a good deal or is it not? We start right at the beginning Tom, and we, we will work with people and providing a proof of funds. You know, people want to know, can you buy the house and we help with the legitimacy when you’re offering.
Tom Kroll: Okay, I have, I just want to stop you because that’s *bell ringing* you guys, that’s amazing. So I just want to explain what Matt just said. He said that he will help you get a proof of funds. Now I can tell you as a wholesaling coach that is a very, very frequently asked question. So that’s part of our FAQ is that that our director of support, Bill Rafter keeps in his files because everyone says, you know, “Hey I went to go do this deal and I needed a POF or a proof of funds letter”. So what Matt is telling you is, “Hey, I’m your guy, I have a ton of money waiting to give to you and I could even give you the proof of funds letters”. So for a lot of you this is going to be a contact that you absolutely have to have. He is in my Rolodex for a reason. He should be in your Rolodex because the proof of funds letter is absolutely just a game changer for you.
Not only emotionally but logistically. So the proof of funds letter Matt, anything you want to add on the proof of funds letter? Because I don’t want to gloss over that important point that you just brought up.
Matt Bell: No, I think you hit it right on the head. It’s, it’s, it basically takes the scary out of the deal for the seller. They know that you are a real buyer and you are going to transact. Again, I think it allows ease of use through that whole process. It makes you legitimate as a buyer.
Tom Kroll: I also love what you said Matt, about how it’s based on the deal. So you guys, let’s just say that you put a house under contract and you’re new and you’re not really sure. Well here’s what I could tell you and Matt, I don’t want to put words in your mouth so stop me if I’m wrong here, but Matt, if you have a good deal, I’m sure that Matt will be more than willing to lend you the money on the deal. But if you don’t have a good deal, he doesn’t care about your credit and he doesn’t care about your bankruptcy and your foreclosure and your credit score and how much money you have in the bank. He is looking at the deal. So one thing I would encourage new wholesalers to do, new real estate investors, is if you have a guy who’s in your pocket with a ton of cash who has 6,000 deals of experience, use him to vet the deal.
Use him to say “Matt, I need money on this deal. Is this a good deal?” And it’s easy to say “Johnny, Sally, this is a horrible deal. I wouldn’t give you a penny on it. Go back and get it lower”. Or he’s going to say, “Guys, this is a great deal. Let’s do it right now and here’s the money”. So that is a whole other benefit of knowing somebody who has a ton of cash and a ton of experience is what, what Matt refers to, I’ve heard him say this before, is he calls it deal verification, which means that he’s looking at the deal and lending on the deal, not on you. So you could put a house under contract and if it’s great, he’ll say, “Hey, let’s go”. And if it stinks he’ll say, “Hey, go back and get a better deal”, which Matt, I don’t know if you want to speak more on that, but I think that is one of the most tremendous benefits of, of using a transactional lender who knows what the heck they’re doing.
Matt Bell: Tom, you teach your students at a really high level to execute, how to negotiate, how to get a good deal and very simply if I can’t fund your deal, you don’t have a good deal and I’m happy to-
Tom Kroll: Oh man, that’s so good. Yeah.
Matt Bell: We talk through that with everybody, we start with the proof of funds will, we’ll give you some legitimacy on the front end and then we’re going to look at the deal itself and make sure that you’re going to make money. I mean, it’s, it’s that simple.
Tom Kroll: You guys, you’re the average of the five people you spend the most time with. That is totally logical and makes sense to me. If you have somebody with money and experience in your network who can vet these deals, it is an absolute game changer. So you get the proof of funds. So let’s walk through a typical deal, Matt. Right? So, and by the way, I don’t think there are any nationwide transactional lenders that I know of. I’ve been in wholesaling now for, for a long time. I’ve never heard of anybody who is a, and I think you’re just right about there, right? You’re a few States away from literally statewide, nationwide transactional lending. So this is guys, just so you know, this is a guy who specializes just for wholesalers, just in transactional lending. Can you take us through a typical deal? So somebody says to you, what is kind of the first step? So they, do they bring you the deal or do they, do you prefer that people kind of get to know your first or can you take us through like what does a lot of that look like?
Matt Bell: Yeah, we, we would have them go, we’re trying to be the easy button. I mean that ultimately is the name of the game. Make it easy, legitimize the process and then make sure the deal closes and make sure everybody makes money. So we’ll start at the beginning. Somebody can go to our website, easybuttonlending.com and in an automated fashion, put their information in and have a proof of funds letter minutes later. Beyond that, then we’re going to get a little bit deeper into the deal. Okay, now you have the proof of funds. Now you’ve sent your offer out and now it’s under contract, so now we’re going to take it to that next level or we’re going to look at the deal.
You now have it under contract, do you have it at a good enough price where you’re going to really make some money and then upon verification of that being a great deal, which you know, again, I think your students have a real leg up in that part of the process. Once we’ve verified that you have a great deal, then we’re going to take it with very little information again based on is it a good deal or not, not your credit, not do you have money, is it a good deal? We’re going to take it to close and we will fund the buy side, your side, the wholesaler purchase, and then your end buyer can buy from you as the owner. And ultimately you make your, your quote unquote fee, which is the difference between the two closing amounts.
Tom Kroll: You know, it’s so funny guys, you know, for our long time listeners, you guys know me, right? And you know, everyone always says, you know, “Tom, you’re so excited”, right, it’s so funny guys. Cause the people on my team who are the CPA’s and the attorneys and the engineers and the hard money lenders and the transactional lenders and guys like Matt, you know, they think exactly how they sound. So if you listen to Matt, right? He’s like, he, you could tell the way his mind works, right? It’s very logical and sequential, right? Which I love because I will tell you guys, all of you know, we may all be rhinoceroses, right? And we’re charging hard, but you want eagles on your team and you want the guys, the men and women who know their field, the stuff that Matt is talking about, it’s a boring topic, right?
Let’s be honest, right? Money and numbers and all this other stuff, but these are the guys and girls that can change your business and change the trajectory of your financial future. So if you do the hard work of finding a deal, and let’s talk about the deal for a minute guys, I just want to say this because Matt is saying, “Hey listen, if you’ve got a good deal, I’ll give you money and if you don’t, if it’s a stinker, I’m not going to”, I want you to understand for anybody who’s listening who doesn’t understand wholesaling yet, you always put a house under contract with the intention that “Hey, this is a good deal and I want to move forward with this transaction”. Either assigning the contract or buying it and reselling it quickly or whatever. But one of the benefits of wholesaling is if you put a deal under contract and Matt says it’s no good, you have the ability to cancel the contract, a good real estate attorney will write your purchase agreement so that you can cancel it.
You can cancel that agreement. And what I want to say to you guys is that if you’re nervous about it, like, “Hey, I don’t want to put a house under contract because you know, I’m not sure”, use your best guess. There’s not a real estate investor in the world who can tell you that their first five or 10 deals weren’t a total disaster, including Matt. I guarantee you, if I say to Matt right now, tell me about your first two or three deals he’s going to tell you he made every mistake in the book. So, and Matt, is that true on your first few deals? Were they better or not as good as your last three deals? What did that look like? There you go guys.
Matt Bell: Night, night, night and day, learning the lessons and pivoting and moving forward. 100% you get better as you go.
Tom Kroll: The laugh tells you everything you need to know. Robert Kiyosaki personally told me, he said, I will say he didn’t personally tell me, but I personally heard him say this to a small audience and he said, he said, “If you’re not rich yet, you haven’t made enough mistakes yet”. So if you have a house under contract and you thought it was a good deal and your intentions were good and it’s a stinker, you have the ability to cancel the contract. So Matt is just there to help you and I love that. So Matt, you already gave us the name. It’s easybuttonlending.com right? If they want to get to know you, they want to find out more about.
Matt Bell: Correct.
Tom Kroll: Okay, so www.easybuttonlending.com so you go there, you go there and you get the proof of funds letter. He’s going to vet your deals.
I love this. I love this whole area. I think this is, I think this is an amazing opportunity for anybody who’s really serious about getting involved, especially in some of the States guys where your attorneys maybe telling you to purchase instead of a sign. I buy most of my deals. I think it’s a great idea. So Matt, what else could you tell us? Like if someone’s new and they’re just starting out or they’re already doing deals, is there any information that you could tell us more about transactional lending or you know, double closing that our audience would need to know?
Matt Bell: Well, I can tell you if you do have a stinker, to go to that topic, you don’t necessarily, you can cancel the contract, but hopefully we’re helping you go back and renegotiate. It’s not necessarily an instant throw away. You just now have a better idea of where you need to be, which means you can go back to the seller and renegotiate. Sometimes that ends up with cancellation, but, but hopefully we’re helping you save some additional deals as well, by giving you some help there.
Tom Kroll: So let me, let me add some clarity there. I totally agree. I think what Matt guys is saying is he’s going to give you the ammunition you need, or I guess ammunition is the wrong word. We don’t want to use ammunition in this day and age, but let’s just say he’s going to give you, I was going to say bullet points, which wouldn’t have worked either. All this gun violence today, let’s, let’s say, let’s just call it that. He’s going to give you the supporting documentation that you will need to go back to the seller to get a better deal. Things that make sense to the seller where Matt can say, “Hey, listen, look at this sale that’s a similar home” or whatever Matt’s going to give you. It’s kind of like an inspection report. It gives you some leverage to renegotiate a better deal. And Matt, the reason we always say cancel the contract is what we have found.
I’ll give, I’ll give away a little tribe secret here. One of the best things that we have found to actually renegotiate a deal is actually to cancel the contract and then when the seller says, well, ‘what can you do it for?’, then we’d come back and we say, Hey, well listen, well Matt bell said, ah, it’s X, Y and Z, and then you can be the bad cop and they’ll be the good cop, but-
Matt Bell: That’s a great strategy, no absolutely. You want to ultimately keep it, right?
Tom Kroll: Absolutely. So yeah, sometimes by canceling it you actually get to keep it , which is pretty cool. But okay, so anything else that that guys and girls who are just starting out especially would need to know about using transactional lending or any tips or tricks about that?
Matt Bell: You know, I think ultimately the most important thing is can you buy it, right? The proof of funds, step one, do you have a good deal, which is kind of step two and then the fulfillment, the funding itself and getting you through the closing and saving the relationship. That’s the key. I don’t want to build a big buyer’s list and have to throw away half of them. I want to keep every one of those relationships and every one of those buyers buying from you and from me and from anybody else who’s buying and selling and wholesaling real estate forever, as long as I possibly can.
Tom Kroll: It’s such a good point. And you know, Matt, you just brought up something is so, so important especially to new wholesalers is they say, you know, sometimes we’ll hear, “Well I don’t want to not be honest with the seller” and they haven’t, which I love, right? So they’ll say, you know, “I don’t want to say I can buy something if I can’t”. Well you guys, Matt will give you the ability to say that you do have money, that you are in fact a cash buyer that you do in fact, if the deal is good, you can pull the trigger and you can purchase it. So if you’re struggling with that emotionally and you were thinking, you know, I just can’t get into wholesaling cause I have to assign, signing a contract has nothing, nothing to do with wholesaling, nothing. Wholesaling is the art of consistently finding discounted properties.
So if you feel more comfortable buying and then reselling the deal, which people say, “Tom, why do you do that?”, well, I’ll tell you why I like to do it too is that there’s way more cash buyers on the MLS than there is on, on my cash buyer list. So putting on MLS is even just this, an awesome strategy. But if you are sitting there and you’re emotionally saying, you know, “I want to be able to really be able to buy the deal because I want to be able to say that to this homeowner”, you guys, this is what Matt provides. He provides that confidence level and that ability to be honest and say, “I am a cash buyer. I can buy this deal. I have the ability”, that alone is profound.
If you’re just starting guys, wholesaling can change your life. It really, really, really can, your, your financial life, I can’t speak to your emotional life and your relationship with your wife and husband or children, but I can tell you that if you’re really seeking financial freedom, I don’t know any other strategy in the world that can provide not only so much cash, but additionally a pipeline of deals that you can cherry pick to keep as longterm rentals for income.
And then also the ability for it to run without you, to have a business that legitimately runs without you, provides you a pipeline of discounted properties you could cherry pick and also provide so much cash. There’s nothing like it in the world and having a guy like Matt on your team is a game changer. So Matt, I’ve got to ask you, people are definitely going to need you, so I know it’s easybutton.
Matt Bell: Lending.
Tom Kroll: I’m sorry. Easybuttonlending.com. Before I let you go though, I’ve got to ask you if you said, “Hey, I’ve done 6,000 transactions”, which is like mind blowing. What would you say to anybody who is starting out, did you have any kind of head start? Did you, did you use something early on that was really a game changer?
I know everybody says they read Rich Dad, Poor Dad, but was there like a course or a, by the way guys, Matt is not a student of mine at all. So he’s a rhino, but he’s not a Wholesaling Inc student. But is there something that you used early on, a book, a resource, a course that you took that you would recommend for everybody else to check out?
Matt Bell: Well, I would say it’s not necessarily a book. I’ve read hundreds of books over the years in different topics, but I can tell you the single most important thing to my development as a real estate investor, wholesaler, flipper and now funder has been joining a mastermind, or a tribe of like minded individuals where everybody helps everybody get better and I think you’ve, you’ve built an entire community to do just that and I just consider those types of environments to absolutely the, the best possible way to develop yourself. Stay plugged in, continue to get better as you go. Ask for help when you need it. You know, there’s a lot of hard things out there to deal with in real estate and funding on my end doesn’t have to be that. Again, that’s why we want to be the easy button for you and plug into your community, constantly get better.
Tom Kroll: I love it guys. Easybuttonlending.com, www.easybuttonlending.com, I couldn’t agree more with Matt on this topic. I love when I go into the Wholesaling Inc Facebook group and there are people who are getting together, they’re sharing cash buyer lists. Nobody in our group believes in competition. They only believe in collaboration for the most part, and it’s amazing when you see all these little subgroups in different areas in Virginia and Florida and Georgia and California or Utah. They get together and they’re in Texas and they’re all having a cup of coffee and discussing wholesaling and sharing resources and older rhinos helping brand new baby rhinos and just new wholesalers or older wholesalers helping more experienced wholesalers, helping new wholesalers. Matt is 100% right. We say it all the time. I’ve said it already on this episode of Wholesaling Inc’s podcast, which is you’re the average of the five people you spend the most time with.
As a matter of fact, Matt and I met in a group, so I’m just, I couldn’t agree more. Go out there guys, check it out. You can hear the way, just even the way that Matt speaks on this podcast, he’s exactly, I could tell you guys the exact type of person that you need on your team. I only hear in circles when I’m with super, super successful people. I always hear people talking about attorneys and money people in positive, good light, not like before in my earlier days when I would be with people and they would talk about people in a negative way. This is such, such a ray of sunlight and Matt can be a major, major part of that sunlight in your life and in your business, so I definitely encourage everybody to check it out. This is a guy you want on your team who can help you vet these deals, get you the proof of funds, www.easybuttonlending.com, go and check it out guys and have a great day. Enjoy it everybody. Matt, thanks so much for being here today.
Matt Bell: Thanks Tom. I enjoyed it.
Tom Kroll: Thanks you too brother.