I'm doing my first transactional funding transaction. I'm the "B" in the A sells to B, B sells to C. C is a cash buyer. It's a large dollar transaction. I believe that I require that C sends funds to the closing attorney 24 hours before the AB transaction so I'm not stuck with a situation where I purchase and C walks at the last second. What else do I need to know or do? Thanks in advance. The buyer is providing a material non-refundable deposit. I don't want to do an assignment on this transaction. Thanks in advance for your insight.
You have it down well. I give you credit for requiring an non-refundable deposit and for wanting the end-buyers funds in escrow the day before. Most transactional funders will require you to close both transactions with the same closing attorney. You will want to schedule your end buyer to sign their closing documents ahead of time also (the same day as your purchase is fine), as transactional funders will want to know that they have both funds in escrow and executed documents before authorizing disbursement of the transactional funds for your purchase. Good luck - sounds like a strong deal.
Ted Akers, Transactional Funder
Thanks for the feedback, Ted!
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