Is six-hour lending something a small pot of idle cash can actually do?

Your yield question is a turns question and you've already framed it right. The fee is flat, so the only variables are how many times a year the same dollars go out and come back, and how many events you can paper without hating your life.

What you're underwriting isn't the house. It's whether the C leg closes and whether the closing office will follow your instructions on disbursement. So the two things I'd want before wiring anything are the fully executed B-to-C contract with proof the end buyer's funds are in escrow, and a closer who has confirmed in writing that she'll disburse your principal and fee before the wholesaler sees a dollar. If either is missing you're a hard money lender on a house you never inspected.

One a quarter isn't a business. It's also not nothing if the alternative is a money market. The failure mode is that the one deal in twelve that goes wrong leaves you holding title to a property you never wanted, and you should assume that costs you more than the twelve fees earned.

Read the extension language before anything else. Every funding agreement I've gone through has a clause for what happens when the C leg doesn't close that day, and the good ones say what the per-diem is and when the funder can force a sale or take the deed. The weak ones say the wholesaler will make the funder whole, which is a sentence, not a remedy.

The other thing you'll want to see is the seasoning question on the C buyer's side. If the end buyer is using financing and their lender has a rule about how long the seller must have held title, that rule kills your same-day exit and nobody tells you until the underwriter reads the chain. @thicket ask the wholesaler for the C buyer's proof of funds or their lender's letter and read it yourself, because that document is your repayment.

Three constraints decide whether this works at your size, and none of them are the fee.

First, deal flow. Transactional funding volume tracks how often double closes happen in your market, and that's driven by whether local wholesalers assign contracts or take title. Assignment restrictions have been tightening in a number of states, which pushes wholesalers toward double closing, and that's what creates demand for this money. How your state treats assignment and whether it triggers licensing questions varies by state, so confirm the current rules where you operate with a local attorney rather than assuming the pattern.

Second, closing practice. Your repayment depends on a settlement agent disbursing in a specific order in a single session. Whether that can happen, whether the A leg funding can be dry, and how the recording gap works all vary by state and by title underwriter. Ask a closer in your market directly before you assume the structure is available.

Third, whether making loans repeatedly in your state requires a license, and whether the arrangement you use to raise or pool money implicates securities rules. Both are questions for a licensed attorney in your state, and you should get that answered before the first wire rather than after.

On the economics, one file a quarter earns a flat fee for hours of exposure and a fixed amount of document work per event. The fee doesn't scale with duration, so idle time between files is pure drag on your annual return. Operators who make this a business do it on repeat wholesalers who bring them a predictable number of files, not on inbound one-offs.

I've been looking at the same math from the lending side. The trap is treating the fee as a rate. 1,500 on 120k for one day annualizes to something absurd and completely meaningless, because you cannot get 365 turns. Count actual turns. Six files a year on the same 120k is 9k, call it 7.5% before your legal costs and the one file that goes sideways.

That's a real number, and it's also a number you can get with less counterparty work in other places. What tips it is whether you find two or three wholesalers doing this monthly who'd rather use you than the national shops.

You bought land because you wanted to stop watching the clock. This puts you back on somebody else's closing calendar for a fee. I'd let the cash sit.