Transactional funding is ultra-short-term capital, often lasting only hours, used to fund the first leg of a double-close wholesale transaction.
Log in to followSomething came up talking to a guy who does maybe a dozen double closes a year. He keeps enough cash to fund the first leg himself and he still uses a funder on almost every deal.…
Something I read said a double close doesn't need transactional funding at all, because the escrow officer just uses the end buyer's money to pay the original seller and everythin…
I've got two transactional funding quotes on a double close scheduled for next Thursday and I can't separate them on price, so I'm trying to separate them on what happens when it…
I've spent a year trying to work out which lane I belong in and this deal finally gave me a real comparison instead of a hypothetical. Contract at 205,000 on a tired but clean fou…
The whole pitch for the funder side rests on the end buyer's money being committed before the advance goes out. Committed isn't in the account. If that wire doesn't land, I own a…
I've been putting a slice of idle cash to work on the funding side of double closes for about three quarters now, and last quarter was the first one clean enough to be worth writi…
Term sheet in front of me from a transactional funder and I keep circling the same three paragraphs. Facts. Funded amount 214,000. Flat fee 4,200. Advance wires morning of, repaid…
I manage rentals for an investor who buys from wholesalers, and his last purchase came apart over seasoning. His lender wouldn't lend unless the seller had held title for a stretc…
Going through a funder's doc package for a double close. A-B at $185k, B-C at $215k, flat fee $3,700, funds out and back the same day. The note is two pages, payable on demand tha…
Six months of nothing and then this one went through in a single morning, so I'll write down what it actually cost while I still remember. Small three bed in an older subdivision,…
A wholesaler at a meetup told me he pays his funder $2,800 a pop and would happily run a second one, and that with $100k I could be it. When I asked about licensing he said none n…
Under contract on a small three bedroom rental at 168,000, my first one, and my loan officer asked a question I couldn't answer. He pulled the county records and the person on my…
Running the numbers on sitting on the funding side of these rather than owning anything. A funder quoting 2% flat on a $200k A-B leg collects $4,000 for money that's out maybe six…
I run closing coordination for a couple of wholesalers, mostly chasing signatures and title conditions. One of them just sent me a deal she wants to double close instead of assign…
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…
Two funders quoted the same deal for me last month. One at a flat 1,750, one at 1.25% of the A leg with a 1,500 floor. On a 96k purchase that's close enough to the same money that…
I'm about as new as it gets, so treat this as a field report and not expertise. Deal was 142,000 to me, 167,000 to the end buyer, both legs on the same day, funder at 1% flat so 1…
Two of the funders I've been calling lead with the same line: if your closer will close A to B using the end buyer's funds, you don't need us. One says it as a filter, they only w…
I hold land and wait, so this whole strategy is foreign to me, but a friend asked me to look at a funder's one page term sheet and I got stuck on the first paragraph. The pitch is…
Three bed ranch in a working class suburb, contract at 118,000, end buyer signed at 139,500. Spread 21,500 and I had it under contract for 21 days. End buyer was using a DSCR lend…