Understanding Transactional Funding in Texas
Welcome to the world of transactional funding, a unique financial tool designed specifically for real estate wholesalers.
This short-term hard money loan is your ticket to quick and efficient real estate deals, often within the same day.
The ABCs of Transactional Funding
Dubbed as “flash funding,” this program allows you to purchase an investment property and resell it on the very same day. No need for credit checks or upfront fees here.
You won’t be asked for down payments, appraisals, employment verification, or income documentation either. Sounds like a dream come true? It gets better. There’s no requirement for bank statements, liquid asset documentation, or prior experience with transaction funding approval requirements.
A Double Close – The Wholesalers’ Secret Weapon
Also known as AB-BC transactions, a double close is what makes this possible. In simple terms: You buy from seller A (A-B), then sell immediately to end buyer C (B-C). This method lends credibility even when properties aren’t assignable directly, making them popular among savvy investors who choose transactional funding over traditional routes.
AB-BC Transaction
Stay tuned; up next, we’ll delve into why choosing such programs could prove beneficial in maximizing your profits.
the terms and conditions of the transactional funding program before proceeding with any real estate investment.
Fast Approval and Funding Process
One of the biggest advantages of transactional funding is the speed at which you can get approved and receive the funds you need. With transactional funding, approval and funding can be completed in a matter of days – far quicker than the weeks or months it takes for traditional loans. This allows you to move quickly on time-sensitive deals and secure properties before your competition.
No Credit Checks or Income Verification
Unlike traditional loans, transactional funding does not require a credit check or income verification. This means that even if you have less-than-perfect credit or are self-employed, you can still qualify for this type of financing. This opens up opportunities for investors who may not meet the strict requirements of traditional lenders.
No Personal Liability
When you use transactional funding, you are not personally liable for the loan. If something were to go awry with the transaction, you would not be held liable for repayment since the loan is secured by the property. This provides peace of mind and reduces the risk associated with real estate investing.
Increased Profit Potential
By using transactional funding, you can take advantage of more real estate investment opportunities and increase your profit potential. By having fast access to funds, you can acquire properties at a reduced cost and market them for a higher return. This type of funding facilitates the ability to amplify profits and expand one’s real estate investments.
Conclusion
Transactional funding offers numerous benefits for Texas real estate investors. From its flexibility in loan amounts to its quick approval and funding process, this type of financing is a valuable tool for wholesalers and investors looking to close deals quickly. With no personal liability and the potential for increased profits, transactional funding can help take your real estate business to the next level.
Transactional funding in Texas provides fast approval and funding, without credit checks or income verification. It also offers no personal liability and increased profit potential for real estate wholesalers.
Decoding Transactional Funding Fees
Understanding transactional funding fees is crucial for Texas wholesalers. This type of short-term hard money loan has a unique fee structure that can greatly impact your bottom line.
The Typical Fee Structure
In most cases, you’ll find a 2% transaction fee applied to the amount funded in these deals. This might seem high at first glance, but it’s important to remember this cost includes the purchase price and other associated expenses. Fund My Double Close only charges a flat 1.25% fee to fund double closings.
The next part will explore how understanding Texas Mutual Release Laws could further protect your investment during transactions.
Exploring Texas Mutual Release Laws
Texas mutual release laws play a crucial role in real estate transactions, especially for wholesalers utilizing transactional funding.
Protecting Your EMD with Wholesale Contracts
A properly written wholesale contract is your strongest safeguard against the risk of losing your Earnest Money Deposit (EMD). It offers protection in case of cancellation during the inspection period and shields you from Texas Mutual Release laws, ensuring that your EMD doesn’t get trapped in escrow. At Fund My Double Close, we provide a complimentary wholesale contract with these essential protections available for free download.
FAQs in Relation to Transactional Funding Texas
How does transactional funding work?
Transactional funding is a short-term loan used by real estate wholesalers. It facilitates the purchase and immediate resale of an investment property, typically within the same day, without requiring credit checks or upfront fees.
What are transactional funding terms?
Terms for transactional funding at Fund My double close include a flat fee of 1.25% with a minimum of $1000. The typical fee is 2%.
How long is transactional funding?
Transactional Funding usually lasts only a few hours or days at most. It’s designed for “same-day closings”, where properties are bought and sold on the same day.
What is extended transactional funding?
Extended Transactional Funding allows more time between closing with sellers and buyers – often up to 30 days – providing flexibility in transactions that require longer turnaround times.
Conclusion
Transactional Funding Texas is a game-changer for real estate wholesalers.
This short-term hard money loan lets you buy and sell properties on the same day, no credit checks or upfront fees required.
You’ve got the ABCs of transactional funding down – it’s all about those double close transactions that give credibility to your deals.
The benefits are clear: quick closings, avoiding high assignment fees, and potential profits with no minimum amount but up to $1 million in funding available.
And let’s not forget about those reduced transactional funding fees if you use the lender as your hard money lender too!
Texas Mutual Release Laws? You’re covered. A solid wholesale contract protects your Earnest Money Deposit during inspection periods while giving room to work with lenders.
Scheduling cash investors is crucial in flash funding scenarios where time is of essence. It’s all about building strong relationships with reliable buyers who can act swiftly when needed.
In this world of wholesaling real estate, maximizing profits becomes easier by utilizing programs like flash or double closing which allows buying low and selling high within short periods.
Ready to take advantage of Transactional Funding in Texas? At Fund My Double Close, we can help you fund a double closing, help pay for your earnest money deposit, and provide you with a free wholesale contract that protects you against the Texas Mutual Release laws.