What is Transactional Funding?

Transactional funding is a short-term loan provided to wholesalers who purchase and quickly resell the property immediately. This is often called a “double closing.

When is Transactional Funding Needed?

Transactional funding is utilized for three basic reasons:

1) They have a contract that is not assignable to a third party.

This is typical when purchasing properties off the MLS, bank owned properties, or properties owned by Government entities ( HUD, FHA, FNMA, etc).

2) The wholesaler is choosing not to assign the contract

In order to maximize their wholesale markup, the wholesaler chooses not to assign the contract. In many instances end buyers will not purchase a property if the assignment fee is too high. YOU DO NOT have to disclose your contract details to the end buyer when you utilize Transactional funding

3) The wholesaler needs to stay in compliance

With state laws that DO NOT ALLOW assignment of contracts.


Transactional Funding

Transactional Funding made Easy Complete Form