Wholesaling & Hard money lender?

[Rene Calacuayo]

Do i need a hard money lender in order to do a double closing on a wholesale deal?

[Shari Peterson]

A legitimate double closing is one in which the buyer brings funds to close on the A to B transaction so that it can be recorded before the B to C transaction closes. Those funds can be cash from his own or a friend or partner's bank account, or they can be from a transactional funder. 

Transactional Funding (TF) is different from Hard Money (HM) because: 

1. TF is 100% funding of the purchase price and all closing closes. HM usually requires the borrower put down 10-25% cash toward the purchase.

2. TF is very low cost, usually 2 points. HM is typically high cost, with 2-5 points plus 8-15% interest

3. TF requires that you have a qualified End Buyer who will close immediately after the first closing, usually the same day. HM does not require that you have an End Buyer and you will have the loan for anywhere from weeks to 12-24 months.