What is Transactional Funding?
Transactional funding is a short-term loan used to finance the A-B side of a sale, whether it is a regular owner, short sale, or REO wholesale transaction. Because title companies have tightened their rules on A_B_C, now you must close on the property before you sell.
The benefit of using transactional funding is there is no credit check, or income verification required. Everything hinges on the deal itself.
The most important qualification is that prior to funding, you must have an end buyer in place, and committed to the B-C purchase the property in a simultaneous close.
All closing costs associated with the A-B sale, and their fees (which can range from $1500-$5000 per transaction) will be deducted from your profit, so you will not have to show up to closing with any of your own cash.
Use our free calculator to know how much to offer on any deal. Just be sure to do your research before you make an offer on any property. We will disclose all fees that will be incurred when borrowing Flip Funds so you can be sure to take these costs into consideration when doing your cost and profit analysis.
- Close more deals by meeting title company requirements
- All closing cost covered
- No need to use your own cash
- Avoid uncomfortable situations between your Seller and end Buyer
- No Credit Check Required-Depends on the deal