Transactional Funding

What is Transactional Funding?

Transactional funding is another type of short-term, hard money loan that is specifically geared towards wholesalers. It allows for the quick purchase and resell of an investment property to occur on the same day.

What is Wholesaling? And Why Do I Need Transactional Funding?

Wholesaling involves purchasing properties at a discount, so that they can be sold for profit to an investor who also plans to make profit.

Transactional Funding is sometimes called a “AB-BC” or “double close” transaction.

Party A, the seller of the property, sells to Party B, the wholesaler.

Party B then sells to Party C, the end buyer, on the same day.

3 Most Common Uses for Transactional Funding in Wholesaling

Sometimes wholesalers need funding to perform same-day transactions in which they close a purchase contract in order to perform the “assignment of contract” or sales of contract property to the end buyer. Texas wholesalers commonly use this type of short-term loan for three reasons.

Non-Assignable Contract
The property that the wholesaler wants to purchase is not assignable to a third party. Meaning the property, the wholesaler is planning to flip, “assign” to end buyer is most likely owned by a government agency, REO, Fannie Mae, Freddie Mac etc.
Transaction Creditability
When a wholesaler uses transactional funding, it allows the seller to perceive them as the end buyer, or cash buyer at the closing table. As opposed to showing the property on the cash investors’ schedule, or being perceived as the go-between or representative of the buyer or sellers. dealing with scheduling cash investors to show the property, (which sometimes upsets the seller) and hoping they close on time.
Non-Disclosure of Assignment Fee
There are times where as a wholesaler, you will make a great deal of profit on a wholesale deal, and the end buyer may not want to do the deal because he sees the assignment fee is too high. When you choose transactional funding, the profit on the deal is not disclosed on the closing statement.

100% Transactional Funding for Wholesalers in Houston, TX

✅ No Credit Check ✅

✅ No Up Front Fees ✅

✅ No Down Payment ✅

✅ No Employment Verification ✅

✅ No Income Documentation ✅

✅ No Bank Statements ✅

✅ No Liquid Assets ✅

✅ No Experience ✅

✅ No Appraisal Required ✅

✅ Prior Bankruptcy OK ✅

✅ Prior Foreclosure OK ✅

✅ Prior Short Sale OK ✅

✅ 100% Funding ✅

✅ Covers 100% Purchase Price ✅

✅ Covers 100% Closing Cost ✅

✅ Covers 100% Fees ✅

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