+ 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 "Simultaneous 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?
Our clients 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.
+ ARE THERE MINIMUM AND MAXIMUM FUNDING AMOUNTS?
Minimum amount is $50k and maximum funding amount is $2.5mil.
+ 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.
+ DO I HAVE TO CLOSE WITH THE SAME CLOSING OFFICE?
We require both the A-B and the B-C transactions occur at the same settlement office or title company. We use our title company. The C-buyer must use our title company. Please note, we will not fund your deal if both you (B Buyer) and the C Buyer aren't both using our title company.
+ WHAT ARE YOUR TRANSACTIONAL FUNDING FEES?
Either a flat fee OR 1.5% of loan amount, whichever is greater. Please contact us for additional fee information, specific to your deal. There are NO UPFRONT FEES and NO FEES if the transaction does not close. All transactions have a $100 processing fee which covers wire and release charges.
+WHAT DOCUMENTS ARE NEEDED?
-The A to B Contract
-The B to C Contract
-Corporate Docs (Articles of Org/Incorporation, EIN Document; Operating Agreement)
-C Buyer's proof of cash on hand (if all cash deal)
-If the C Buyer is getting a loan to purchase the property, we require the lender LOC (letter of commitment) showing C Buyer funds are ready to close
+DO YOU MAKE THE FUNDS AVAILABLE FOR CLOSING?
We place funds in escrow 24 prior to closing. If closing is delayed beyond 24 hours, we will make an exception for an additional 24 hours, otherwise we will collect our funds and re-issue when closing is rescheduled.
+ DO YOU OFFER PROOF OF FUNDS LETTERS?
We offer free Proof of Funds letters to our clients. Just fill out the request form. We will email you the letter in PDF format