TRANSACTIONAL FUNDING

WHAT IS TRANSACTIONAL FUNDING?

          In simple terms, transactional funding happens when a wholesaler matches a buyer with a seller. The wholesaler locates the property, and then locates a buyer, or vice versa. In most cases the wholesaler does not have the funds to purchase the property, and then begin their search for a buyer. The wholesaler utilizes transactional funding to purchase the home and then simultaneously sell it to the end buyer the same day.

 

WHO USES TRANSACTIONAL FUNDING?

  • Wholesalers

  • Any other investors who locate a property and prefer to offload it quickly to another investor

 

WHAT KIND OF DEALS CAN TRANSACTIONAL FUNDING BE USED FOR?

  • Any deal in which the wholesaler can make a profit by purchasing a property and turning right around and selling to an end buyer quickly.

WHAT ARE THE STEPS INVOLVED IN TRANSACTIONAL FUNDING?

  1. The wholesaler locates a seller.

  2. The wholesaler locates a buyer.

  3. The wholesaler coordinates a simultaneous closing for the purchase and sale of the property.

  4. The wholesaler utilizes transactional funding to purchase the property from the seller, so they can turn right around and sell it to the buyer at a higher price.

Seller

Wholesaler

Buyer

TRANSACTIONAL FUNDING TERMS

Interest-N/A

Origination Fees-1 to 2 Points

Loan To Value-Up to 100%

Amount-$50,000-$1MM

Locations-Texas

Loan Type-Residential & Commercial

Loan Length-N/A

Minimum Required Length-N/A

Credit Score-N/A

Bank Statements-N/A

Appraisal Fee-$0

Application Fee-$0

Prepayment Penalty-N/A

Tax Returns-N/A

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