BiggerPockets

:D I want to wholesale properties and use transactional funding to complete my first few deals.

Some of the available funders say "No-out-of-pocket costs at all." on their websites. All of them say their funding covers "all closing costs." although one says this as well but in the F.A.Q.'s section they say they do not cover the Earnest Money Deposit. I am confused as to what their versions of no-out-of-pocket costs mean, I am assuming that all but Coastal Funding are paying the Earnest Money Deposit.

Also, I have seen it posted here on Biggerpockets that investors need to use these funds quickly because they become very expensive, so I think it is crucial to attend closing with the knowledge of how to get it as efficiently as possible.

QUESTION:
With an F.S.B.O. the timing of the E.M.D. can be negotiated I think but with R.E.O.'s will the Lender want the E.M.D. too far in advance for the Transactional Funding to be cost effective or work period?

If you have used Flash Funding to purchase an R.E.O. from a Bank then you would know how to time all of these so you would only need 24 hours to get this done.

If you needed a Proof of Funds letter for a month it would probably cost you an Arm and a Leg.

Thank you all and have a Happy New Year!

:mrgreen:

My experience is that more title companies every week are refusing to double close without transactional funding, even on FSBO's. To answer the original question, I don't know of any transactional funding companies that will provide earnest money. The claim of "no up-front" costs means the fees associated with the loan. Short Funding does not require up-front application fees or charge for Proof of Funds no matter how long the time period is. Good luck.