Transactional Funding 101: How It Protects Wholesalers
In the fast-paced world of real estate, transactional funding emerges as a lifesaver for real estate wholesalers. This method gives them the financial leverage to close deals quickly and effectively. But, like any strategy, it comes with its own set of questions and concerns.
In this blog, you’ll find clarity on the role of transactional lenders and how it safeguards your wholesaling business. So, if you want to learn more about this, keep reading!
What Is Transactional Funding?
Transactional funding is a short-term loan method that real estate investors use for their property deals. It’s also known as “same-day funding” due to its uncomplicated nature.
Transactional funding helps real estate wholesalers buy a property from a seller and sell it to an end buyer on the same day. This method eliminates the need for wholesalers to use their funds, reducing risk and providing financial flexibility.
Why Choosing This Financing Method Is Beneficial For Wholesalers
Transactional funding gives you the financial security and peace of mind that comes with having a reliable partner to help fund the transaction. These are some situations you can avoid by choosing this method:
You Avoid Conflict With The Buyer Or Seller
When you’re wholesaling real estate, there’s always a chance that the seller might not be thrilled when they discover the profit you’re making from the deal. This realization could lead them to back out entirely, leaving you in a lurch. But with transactional funding and the double closing process, this risk is mitigated.
Similarly, if buyers know how much you originally paid for the property, they might try to haggle for a lower price. However, in a double close, the buyer only sees the price you charge them.
You Avoid Conflict Between The Buyer & Seller
There may be instances where the seller feels duped or misled if the agreed buyer (the wholesaler) doesn’t show up on the closing day. This scenario can create unnecessary conflict and disrupt the deal.
By using transactional funding, wholesalers can double close, meaning they first purchase the property from the seller and then sell it to the end buyer. This ensures that the buyer and seller are not part of the same closing.
Wholesalers Transactional Funding Is Your Go-To Company To Get Same-Day Loans!
As a real estate wholesaler, you aspire to be a savvy, resourceful investor who can seize opportunities effectively. Yet, securing immediate funding for a promising deal is a hurdle many wholesalers face. The uncertainty of not having the funds on hand when you need them can leave you feeling stuck and helpless.
You don’t deserve to go through that. At Wholesalers Transactional Funding, we understand this situation all too well. That’s why we’re committed to providing same-day loans to help alleviate these pressures and push your business forward.
With hundreds of deals funded nationwide, we stand as the country’s go-to transactional funding company. Contact us now to learn more!