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.
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.
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.
✅ 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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