Transactional funding is a game-changer for real estate wholesalers. By leveraging this financing tool, wholesalers can close deals without using their capital, allowing them to grow their businesses and maximize their profits. This article will explore how transactional funding works and its eligibility and documentation requirements. Keep reading!
Step-By-Step Guide To Transactional Funding
1. Identifying A Potential Property
The first step in utilizing transactional funding is identifying a property with a high-profit potential; this could be a distressed property, a motivated seller, or a foreclosure. Wholesalers often leverage extensive networks, market research, and direct marketing strategies to uncover these off-market gems.
2. Securing A Purchase Contract
Once you’ve identified a promising property, you must secure a contract with the seller. This contract outlines the terms of the deal, including the purchase price, contingencies, and closing date. It’s essential to negotiate favorable terms that align with your wholesaling strategy.
3. Applying For Wholesalers Transactional Funding
With the purchase contract in hand, you can now apply for transactional funding. Most lenders offering transactional funding cater specifically to real estate wholesalers. They understand the unique nature of these deals and provide the necessary financing to facilitate the transaction.
Eligibility And Documentation Requirements
To access transactional funding, wholesalers typically must demonstrate their expertise in the real estate industry. Lenders may require proof of previous successful wholesale deals or a track record of relevant experience.
Documentation requirements vary by lender but often include the following:
- Copy of AB Contract
- Copy of BC Contract
- Copy of any amendments to either contract
- Signed Operating Agreement
- Copy of Driver’s License
Wholesalers Transactional Funding Offers Outstanding Solutions For Your Business
As a real estate wholesaler seeking off-market properties and direct-to-seller leads, you aim to close deals quickly and efficiently. The problem is that most traditional financing options won’t work in this context. It’s only natural to feel frustrated.
At Wholesalers Transactional Funding, we know the challenges you face. We’ve helped many residential and commercial real estate wholesalers close deals fast and maximize their ROI through transactional lending. Our model is clockwork-reliable, straightforward, and seamless. We offer 100% funding, a 1% origination fee (*1.5% in CA), and no minimum loan amount, so get started today!