Question for DFW Wholesalers

4 Replies

Been searching through posts to get a clear picture on the wholesale funding process. I am reading that some wholesalers use transactional funding to do a double closing and some buyers use the C Buyers funds. It appears there would be added costs by using transactional funding vs using C Buyer funds. Assuming that assigning is not a desired option, what are the determining factors in choosing to use transactional funding vs using C Buyers funds? On the surface it would appear that using C Buyer funds is always cheaper and achieves the same result but transactional funding exist for a reason. Is it Title Company driven, TREC driven, privacy driven, or personal preference driven? Please educated me. Thanks! 

Maybe I posted at a bad time or maybe this is a bad question. Nevertheless, I am trying this again :)

I think you're over thinking all of it.  It's quite easy just bring me a deal, assign the contract over to me and you get paid.  Pretty simple!!  If your concerned about the C buyer knowing how much you made, don't be.  I've paid out $20+K and my only concern is that my numbers work.

I am not concerned about the C Buyer knowing what I am making. I would like to understand why some people are using transactional funding and some are using C Buyer funds. Why are people incurring the transactional funding fee if they can use C Buyer funds? There has to be logic behind that. I am not an experienced wholesaler so that is why I am asking the questions. 

Some wholesalers use transactional funding so they aren't accused of acting like an agent without a license from my experience.  They close it a-b then resale b-c.

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