Scenarios You Can Avoid By Using Transactional Funding
Transactional funding is a short-term financing solution that provides real estate wholesalers with the necessary funds to facilitate double closings. It allows investors to purchase a property, then immediately resell it without using their money. It also allows Investors to buy a property and refinance same-day minimizing cash out of pocket. This type of funding eliminates the need for traditional financing methods, making transactions more seamless and efficient.
By using transactional funding, wholesalers can avoid complications. This blog post will explore 5 scenarios that can be avoided by using transactional funding. It will ultimately lead to a smoother and more successful wholesale/investor real estate experience. Keep reading!
5 Situations That Transactional Funding Can Help You Avoid
These are five situations in the wholesale real estate industry that can be avoided by using transactional funding:
- Buyer’s lender not approving your assignment because you aren’t on the deed: Transactional funding ensures that you’re on the deed as the property’s owner, even if it’s for a short period. This eliminates issues with lenders not approving assignments due to lack of ownership.
- Buyer or seller walking away at closing after seeing your assignment fee: With transactional funding, the assignment fee is not disclosed on the settlement statement, preventing any potential objections from buyers or sellers.
- Hard money lenders: Using transactional funding means you don’t need to rely on hard money lenders, which often come with high-interest rates and fees. This helps wholesalers save money and close deals more efficiently.
- States or counties requiring you to have a license: Transactional funding allows you to own the property temporarily, so you can avoid licensing requirements in certain states or counties that apply to assignment transactions.
- Closing companies that won’t allow pass-through funding: Transactional funding enables you to work with any closing company, as it doesn’t involve pass-through funding. This flexibility lets wholesalers choose the best closing company for their needs.
Wholesalers Transactional Funding Is Ready To Help You Close Amazing Deals
As a wholesaler, you aspire to be efficient, resourceful, and successful in closing profitable deals. However, the lack of funds, restrictive lending conditions, and licensing requirements can hinder your progress and growth in the industry. You can end up feeling stressed and uncertain.
Those feelings can negatively impact your confidence and decision-making abilities. No wholesaler deserves to experience these challenges. Wholesalers Transactional Funding understands your struggles. We’ve helped hundreds of wholesalers close amazing deals with ease and confidence. Contact us to learn more!