Transactional Funding
for Real Estate Wholesalers
What is Transactional Funding?
When you first learn about wholesaling real estate everyone talks about "assigning contracts" and that's fine when your assignment fees are low, the investors won't care about paying you a few thousand if you're bringing them a great property. But the day will come when you get an amazing house under contract for an even amazing price, this is your golden opportunity to make BIG money!!! This is when Transactional Funding comes in handy!
So what is transactional funding?
So what is transactional funding?
Transactional funding is a form of very short-term, hard money lending, which allows a real estate wholesaler the opportunity to purchase a property with none of their own funds. Transactional funding providers will require the wholesaler to already have an end buyer in place to purchase the property within a very short period of time (typically 2-5 days). This type of funding allows the wholesaler to buy the property and then quickly have a second closing to convey ownership of the property to the end buyer without disclosing their profit margin on the transaction.
The Wholesalers Toolbox has Teamed Up With StraightLine Funding
bringing 100% Transactional Funding to Wholesalers!
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Lowest Fees
Straightline's low cost funding structure allows you to keep more of your wholesale profits. We also have no upfront fees and no fees if the deals do not close. |
Funding in 45 States
Straightline can fund double closings in all states except New York, California, Hawaii, Alaska, and Nevada. We can also help you with investor friendly closing firms. |
Fast Funding
Because we have been funding double closings since 2006, our process is fast and efficient. Let our experience work for you to close more deals and make more profit. |
Dedicated Team
We work 100% with real estate investors. Your funding request is sent immediately to our team to open a file and start working on what is needed to get you to closing. |
Start The Process By Filing Out The Form Below
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FAQ's About Transactional Funding
What is Transactional Funding?
Transactional Funding is a short term loan provided to wholesalers who purchase and quickly re-sell a property the same day. This is often called a "Double Closing". The seller of the property is typically called "Party A". The wholesaler is typically called "Party B". The end buyer of the property is typically called "Party C". Transactional Funding deals are also sometimes called "A-B - B-C" Transactions.
Transactional Funding is a short term loan provided to wholesalers who purchase and quickly re-sell a property the same day. This is often called a "Double Closing". The seller of the property is typically called "Party A". The wholesaler is typically called "Party B". The end buyer of the property is typically called "Party C". Transactional Funding deals are also sometimes called "A-B - B-C" Transactions.
When is Transactional Funding Needed?
Wholesalers use our Transactional Funding Service for two basic reasons:
1. They have a contract that is NOT ASSIGNABLE to a third party. This is typical when purchasing properties off MLS, bank owned properties, or properties owned by government entities (HUD, FHA, Fannie Mae, etc).
2. The wholesaler is choosing not to assign the contract in order to maximize their wholesale markup. Many times 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.
Wholesalers use our Transactional Funding Service for two basic reasons:
1. They have a contract that is NOT ASSIGNABLE to a third party. This is typical when purchasing properties off MLS, bank owned properties, or properties owned by government entities (HUD, FHA, Fannie Mae, etc).
2. The wholesaler is choosing not to assign the contract in order to maximize their wholesale markup. Many times 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.
Are there minimum and maximum funding amounts?
There is no minimum funding amount. The maximum funding amount is $1,000,000
There is no minimum funding amount. The maximum funding amount is $1,000,000
What are the Transactional Funding Fees?
- 1% of the purchase price up to $499,999 (minimum fee of $750)
- 2% of the purchase price from $500,000 to $1,000,000
Is Credit a factor to obtain Transactional Funding?
No. There are no personal financial requirements to obtain Transactional Funding. We do not run your credit and do not require bank statements, tax returns, etc.
No. There are no personal financial requirements to obtain Transactional Funding. We do not run your credit and do not require bank statements, tax returns, etc.
Do both transactions have to close at the same title office?
Straightline requires both the A-B and the B-C transactions occur at the same settlement office or title company. Some exceptions are possible so please discuss your specific situation with a loan officer if your transactions are closing at different offices.
Straightline requires both the A-B and the B-C transactions occur at the same settlement office or title company. Some exceptions are possible so please discuss your specific situation with a loan officer if your transactions are closing at different offices.
Do you offer Proof of Funds Letters?
We offer free Proof of Funds letters to our clients, just ask your loan officer for one after you're funding is approved
We offer free Proof of Funds letters to our clients, just ask your loan officer for one after you're funding is approved
Transactional Funding is provided by Straightline Funding and is and is not a product of The Wholesalers Toolbox.
For more information about our affiliate relationships please read our affiliate disclosure
For more information about our affiliate relationships please read our affiliate disclosure