Transactional Funding....does it really exist?

Question

When wholesaling properties I have heard of using transactional funding the day of closing.  This in theory would allow you to purchase the home you have under contract in one room, assign it and have your assignee sign in the room next to you.  Sounds very very good but are there people or lenders actually doing this?

Ivan Terrero · Answer

Short answer is yes.

Mario Garcia · Answer

How does one get approved from this type of funding?  Do you guys know the requirements?

Jeb Durgin · Answer

Tom is correct from a logistics standpoint. If you're asking how someone gets approved from a lending standpoint, it would be pretty straightforward: The numbers have to make sense, and you would need to have the back-end buyer lined up. That's the basics of approval

Tom Gimer · Answer

The "approval" comes in the form of the same title company handling both transactions and assuring the transactional funder that the A-->B transaction will not close until the money for the B-->C transaction is in their escrow.

Any other arrangement will eventually lead to catastrophe, IMO.

Izaiah Barba · Answer

Yes, transactional funding is real and it’s still used, mostly in situations where assignments aren’t allowed or when the seller or end buyer doesn’t want the other party to see what you’re making. It’s typically referred to as a “double close.” You buy and sell the property almost instantly, usually on the same day.You’ll find private lenders who specialize in transactional funding. They usually just need to see the A-B and B-C contracts and charge a small flat fee or percentage (often 1–2%). Just make sure your title company is experienced with wholesaler double closes. I have a few transactional funders I can connect you with. Feel free to DM me and I can connect you!

Jeb Durgin · Answer

We provide transactional funding, but we know a one-day window can be risky. That's why we offer a unique product: transactional funding that lasts up to two weeks.

This extended timeframe protects you from common issues that can derail a deal, like last-minute delays or unexpected snags. Our goal is to give you peace of mind and the time you need to close successfully.

If you're working on a deal and want to explore a more flexible funding solution, send me a message to connect.