Real Estate Wholesalers specialize in finding properties they can purchase and then resell quickly for a profit. To do this successfully, wholesalers need access to capital to fund their transactions. Transactional funding provides an ideal solution for wholesalers looking to make fast deals without relying on debt or traditional financing sources such as banks or hard money lenders.
We understand you want to be a wholesaler who controls your destiny and doesn’t have to worry about other financing methods. Transactional funding is an excellent way to access quick capital to help you close on a deal. If you want to know in which situations this method can help you, keep reading!
4 Things You Can Avoid With Transactional Funding As A Wholesaler
1) Hard Money Lenders With High Origination Fees And 14% Annual Interest: This isn’t the ideal lending option for a wholesaler looking to maximize profits. Transactional funding allows you to access loans at only 1% with no hidden fees or annual interest
2) States Or Counties Requiring Wholesalers To Be Licensed: If you don’t have a license to do business in a certain state or county, then you won’t be able to complete the transaction. Transactional funding allows you to double close and become the owner by the time you resell the property, so there’s no need for you to acquire any additional licensing.
3) States Or Counties That Don’t Allow Pass-Through Funding: Pass-Through Funding is a financing option commonly used by real estate wholesalers. It’s a type of creative financing that allows the wholesaler to use the end buyers funds in escrow to pay for their initial purchase. .
This is becoming more and more frowned upon, especially if someone was audited…. Unfortunately, some states and counties don’t allow Pass-Through funding. As a matter of fact, more Attorney’s and Title Companies are refusing to allow pass through funding to make sure funding is completely separate incase of an audit or new laws. Transactional funding allows you to avoid this issue by having a separate source of capital for your double closing.
4) Tightening Attorney Scrutiny Due To New Title Insurance & Financing Regulations: If pass-through funding and double-closing are not allowed, the attorney/title company may require more scrutiny of the transaction. That situation could delay the closing. Having a third party provide capital for your transaction will make everything easier for you. Therefore, Wholesalers Transactional Funding is the answer.
Avoid All Future Hassles By Getting Transactional Funding With Us
Transactional funding for wholesalers can be a great way to maximize profits and make fast deals. So, if you’re looking for transactional funding, we’re here to help you! At Wholesalers Transactional Funding, we aim to make the process of obtaining transactional funding as straightforward as possible.
We want to ensure you close that fantastic deal you just got without any future hassles. Wholesalers Transactional Funding is your go-to transactional lender. Jesse LeBlanc, our founder, has many years of experience in the industry. We know how to deal with any situation. Contact us today and learn more about how we can help you!