Transactional Funding for Wholesalers Nationwide: A Complete Guide

You’re a real estate wholesaler, constantly on the hunt for the next investment property deal. You identify that perfect property with massive profit potential, but then doubt sets in. What if someone snags it because you don’t have the cash up front?

This is where transactional funding for wholesalers nationwide comes in. It’s a short-term financing tool designed specifically for real estate wholesalers. It lets you close a deal and quickly resell it to a cash buyer, usually within the same day or up to a few days.

Table of Contents:

• Understanding Transactional Funding
  • How Transactional Funding Works
• Why use Transactional Funding instead of a Traditional loan?
  • Bank Financing versus Transactional Funding
• Benefits of Transactional Funding for Wholesalers Nationwide
  • Keeping Your Wholesale Fee Hidden
• Choosing a Transactional Funding Partner
  • Review Transactional Funding Companies
• Costs and Fees With Transactional Funding
• Transactional Funding Requirements
  • Things That Could Slow it Down
• FAQs about transactional funding for wholesalers nationwide
  • How do I get transactional funding?
  • What services offered by wholesalers transactional funding?
  • What is an example of transactional funding?
  • What is transactional funding for wholesaling real estate?
• Conclusion

Understanding Transactional Funding

Transactional funding is often referred to as “flash cash” or “same-day funding”. It helps real estate wholesalers nationwide complete double closings without putting up any personal cash.

Traditional loans take longer to get approved. Wholesalers don’t always want to work this slowly which is why transactional funding is key.

How Transactional Funding Works

Transactional funding involves three parties: the original seller (Party A), the wholesaler (Party B), and the end buyer (Party C).

The transactional lender gives the funds to the wholesaler (Party B) to purchase the property from the seller (Party A). Then, the wholesaler (Party B) immediately sells the property to the end buyer (Party C).

Here’s a step-by-step of how this can work:

1. Party B finds a property and has an agreement with Party A.
2. Party B then finds an agreement with Party C, who plans to buy it.
3. The wholesaler applies for transactional funding to pay for Party A.
4. Money is released to cover expenses for the first deal.
5. Party B then takes profit between deals of A and C when paid back.

Why use Transactional Funding instead of a Traditional loan?

Traditional lenders often look at private investors and their income requirements. Transactional funding usually avoids private money.

With traditional bank financing the approval time could take many weeks. Also, they may ask for a larger down payment. Transactional Funding for wholesalers nationwide can help avoid that problem.

Bank Financing versus Transactional Funding

Bank financing depends on what lenders choose after reviews. Traditional loans are affected by rate locks, appraisals, and more, but with transactional funding for wholesalers nationwide, that is not needed.

Approval and funds could take place much faster with same day service. Sometimes with a traditional lender, it may take much longer. Transactional Funding avoids using a hard money loan in a deal.

Benefits of Transactional Funding for Wholesalers Nationwide

There are various reasons why a wholesaler might go this route. Here are some major benefits of this.

For one, there are often no credit checks required. Many transactional funders don’t need a minimum credit score or have any income requirements, and the funding process can also be much faster.

Keeping Your Wholesale Fee Hidden

Sometimes, an end buyer (Party C) might back out of the real estate wholesaling deal. They may see how much the wholesaler is making.

Using transactional funding lets you protect your profits. This makes transactional funding for wholesalers nationwide an easy solution to close deals.

Choosing a Transactional Funding Partner

Several firms do provide transactional funding. Some firms like, Washington Capital Partners, is considered one of the top services for lending. Finding a trust-worthy company is very important.

Jet Lending is a private lender located in Texas. They service customers nationwide, which could make them a reasonable solution to work with and provide great service.

Review Transactional Funding Companies

Make sure that they have real estate industry experience before trusting a new provider. Look into user testimonials, like one by Alece Alexander, which talks about their experience with a provider.

Paces Funding, can fund quickly because they have their own capital. Some companies depend on investments, and they take longer. They also serve North Carolina and South Carolina markets.

Some, like, Tidal Loans, help customers with poor scores. Others, such as Equity Max, offer 100% transactional funding real estate loans quickly.

So companies offer multiple fast funding options. Coastal Capital Funding gives loans for this type of funding too.

Costs and Fees With Transactional Funding

Transactional funding fees typically range from 1% to 3% of the property loan amount, but some lenders may charge more. Also, many lenders might have a minimum fee, no matter how small the loan.

The rates provided could depend on the overall maximum funding amounts. Transactional Funding rates differ and is related to funding amounts.

You can view transactional funding details here:

Loan Amount	Rate	Funding Timeline
Up to $1,000,000	1% (minimum fee of $1,000)	Same Day
$1,000,001 to $2,000,000	2%	Multiple Business Days
$2,000,001 to $5,000,000	3%	Multiple Weeks

Transactional Funding Requirements

The biggest need is a contract with both the seller (Party A) and an end buyer (Party C). There needs to be closing plans on, or around, the same day so you have quick access to funds.

Proof that the end buyer (Party C) can buy the property is usually needed. This is like an approval letter from a lender if they need loans for the closing deal.

Things That Could Slow it Down

Funding might take more than a day if additional documents are needed to complete the transaction. Working with various title companies can also slow it down, like with multiple closing services, excluding closings.

FAQs about transactional funding for wholesalers nationwide

How do I get transactional funding?

To get simple quick transactional funding, reach out to a lender specializing in this and provide them details on the wholesale deal. You will often have an answer quickly from approval after the paper work is shared with your account manager.

Many have great customer service to help guide you. We’ll provide great service and explain any part of the deal.

What services offered by wholesalers transactional funding?

Wholesalers use this for funding double closing mostly. It covers costs when the contract isn’t allowed and you need to close the deal.

What is an example of transactional funding?

Here is a case of transactional funding real estate. An investor named Sarah finds a good deal on a house in Texas and uses transactional funding to purchase the home.

An end buyer immediately closes on the house within hours later that day. This completes the real estate wholesaling deal with quick transactional funding.

What is transactional funding for wholesaling real estate?

It’s a temporary money loan. Wholesalers are helped with deals without using personal cash or traditional financing in transactional funding.

Transactional lenders fill in the gap so you can facilitate double closings with ease. Many in the real estate industry highly recommend it.

Conclusion

Being a real estate wholesaler can give you many benefits and a lot of personal freedoms. The thought of losing potential sales because you have a fear of not having enough cash is unsettling for a real estate wholesaling deal.

This could solve problems for many real estate deals and allow you to close more deals. Knowing what is required before taking next steps is valuable. Transactional funding for wholesalers nationwide may be a tool to put inside your bag, so you can have many successful closings.