Transactional Funding: A Wholesalers Secret Weapon
Article by Lima One Capital, Hard Money Lenders
A simple Google search will tell you a lot about the current state of Transactional Funding. Scrolling down the page will show many groups offering this service with varying rates and terms. What is sorely lacking from these results is straightforward information on the mechanics and value of Transactional Funding. This is a shame, especially when you consider the staggering number of failed deals that could have gone through with the help of Transactional Funding. In many ways, Transactional Funding is a wholesaler’s best friend and secret weapon.
Wholesaling is hard work. Wholesalers often have to devote hours of time and dedication just to close one deal. In traditional wholesaling you find a property with investment potential and put it under contract. In an ideal world, a buyer is quickly found and the hard work pays off. But, what if a contract is not enough? In some instances the A to B side of the deal must be funded before anything can go forward. This is where Transactional Funding comes in to save the day. Working with a lender who will fund the A to B side of the transaction means you will be fully capitalized for any wholesaling deal you come across. A proof of funds letter issued by a lender makes securing deals that much easier. Transactional Funding comes with an origination fee off of the total loan amount but brings with it the security of always being able to close a deal.
Transactional Funding does come with its own set of guidelines that must be met in order to close. First, the C buyer must be place at the time of closing. In essence, the A to B and the B to C parts of the transaction will occur simultaneously. Second, many lenders will require both sides of the deal close in the same attorney’s office. This ensures the deal will go smoothly for all parties involved.
Lima One Capital boasts the industry standard for Transactional Funding with the absolute lowest rates available throughout the country. If you are a wholesaler looking for funding to facilitate your next double closing now is the time to learn about Transactional funding. You can find more information on this service here.