Funding the A leg when the C buyer's wire lands tomorrow instead of today
Been reading funder agreements to understand where the protection actually sits, and the same-session ones are straightforward. Money goes out, A leg records or is held, C buyer's funds are already in escrow, funder is repaid from disbursement in the same sitting. Exposure measured in hours, flat fee earned, done.
Then there's the other category. The C buyer is using a lender, and that lender funds the next business day, or a wet-funding requirement in that state forces the A leg to fund before the C money arrives. Whether the closing can be structured dry or must be wet varies by state and by the title underwriter, so this isn't a preference thing everywhere. Some funders price this as a one-day extension at a higher flat fee. Some just refuse.
The case for taking it: the fee is bigger, the C lender's funding letter and the closer's escrow hold give you something to point at, and a wholesaler who can close on a financed end buyer is a wholesaler you'll see again. The case for refusing: the whole reason this is low risk is that the repayment source is already sitting there. Once the money is out overnight against a commitment rather than cash in escrow, you're a bridge lender with none of the underwriting a bridge lender does, and you own a property you never wanted through an entity that can't carry it.
Where would you draw the line as the funder?
As the funder, would you advance the A leg when the C buyer's money arrives after the session?
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