Transactional funding is a short-term loan that helps real estate investors buy and sell properties on the same day without using their own money. This is especially useful for wholesalers who need quick cash to close deals.

The Basics

1. Parties Involved:
   • Party A: The original property seller.
   • Party B: The investor or wholesaler.
   • Party C: The end buyer.
2. The Process:
   • Step 1: Party B finds a property and agrees to buy it from Party A.
   • Step 2: Party B then finds Party C who agrees to buy the property from them.
   • Step 3: On the day of closing, Party B uses transactional funding to purchase the property from Party A.
   • Step 4: Immediately after, Party B sells the property to Party C.
   • Step 5: The funds from Party C’s purchase are used to repay the transactional loan.

Why Use Transactional Funding?

• No Personal Funds Needed: Investors don’t need to use their own money to close deals.
• Fast and Efficient: Transactions are completed quickly, often on the same day.
• Increased Credibility: Having the funds ready shows sellers and buyers that you are serious and reliable.

When Is Transactional Funding Needed?

Transactional funding is essential when your end buyer is paying cash or using a private or hard money loan. Big retail lenders typically won’t fund double closing deals, making transactional funding a perfect solution for such scenarios.

Get Started with Transactional Funding

Ready to secure funding for your next real estate deal? Apply now and get the financial backing you need to succeed. Apply for Transactional Funding!