Being a wholesaler is not an easy profession. A lot goes into finding a profitable deal and then getting it to close. One of the most important aspects of being successful as a wholesaler is having access to transactional funding for double-closing residential properties.
Transactional Funding is an excellent way for wholesalers to close deals quickly and easily. It provides short-term funds necessary to purchase a property and resell it without issues. At Wholesalers Transactional Funding, we understand how important time is for real estate wholesalers; therefore, we created solutions to enhance your double closing process. Contact us!
Understanding How A Double Close Works
A double close is a strategy wholesalers use to purchase a property from their seller and then resell the property to their end buyer on the same day. They must find an end buyer for the property before getting to the closing table. Read below to get a better understanding of the process!
Securing A Property
The first step is finding and securing a property you want to resell. In this process stage, you make an offer on the property, and if the seller accepts, you sign a purchase agreement.
At this point, it's crucial to have a clear understanding of the property's value and what your expected profit will be.
Once you have this information, you can request funding from our team at Wholesalers Transactional Funding.
Finding An End Buyer
The dynamic of a double close is that you find an end buyer before you purchase the property. You can find the buyer through your network of contacts, online listings, or working with a real estate agent. It's important to note that we can only begin working with wholesalers after you have a contract with the seller and a contract with the end buyer.
You also must provide us with information on who their closing team is. Then, we wait for the closing team to do their title search and set a closing date. After all that is set, we provide our loan docs and work directly with the closing team. This allows the wholesaler to continue dealing with their business without worrying about funding. When the closing date arrives, we'll fund after both AB and BC (first and second closing) docs have been signed and the end buyer's wire is in escrow.
At this point, everything is lined up, and you're ready to close on the deal. We'll fund the purchase of the property, and you'll then sell it to the end buyer the same day or the following day. You'll profit from the difference between your end buyer's purchase price and your purchase price minus closing costs. It's that simple!
Rely On The Experts In Residential Transactional Funding
At Wholesalers Transactional Funding, we've worked with hundreds of North Carolina wholesalers and helped them close on many properties. Wholesalers Transactional Funding's founder, Jesse LeBlanc, has operated a wholesale company for years and has trained his team to fully understand the ins and outs of wholesaling. Hence, we entirely relate to your wholesale needs.
Get in touch with us today to learn more about our residential transactional funding service and how we can help you efficiently close more deals. We look forward to hearing from you!
NO UPFRONT FEES ♦ NO ADDITIONAL FEES ♦ NO MONTHLY PAYMENTS
NO APPRAISAL ♦ NO CREDIT CHECK
A typical case study
So let's look at the process step-by-step with an example:
- The wholesaler enters into a contract to buy a single-family home from the original seller (let's call him A) for $300,000 - Part 1 of the transaction.
- The end buyer (call her C) signs a contract to buy the wholesaler's property for $350,000 on the same day as Part 1 (i.e., Part 2 of the transaction).
- The wholesaler delivers a BC contract signed by C (the end buyer) to the transactional lender.
- On the day of settlement, the transactional lender lends the funds to the wholesaler to pay A.
- Immediately after completing Part 1 (of the two-part transaction), the wholesaler closes Part 2 and collects C's money.
- C's payment pays back the transactional lender’s fee. The balance goes to the wholesaler's bank account as the realized profit.
- It may look like a complicated procedure, yet it's quite simple. A closing entity (e.g., an attorney or title company) is generally the middle entity acting for the wholesaler in Part 1 and Part 2 of the entire deal. They deal directly with the lender, the original seller, and the end buyer - removing the wholesaler from the heavy lifting.
Have a deal in NC ready for us to fund?
If you live anywhere in the country, we can help you. There are two simple options provided below. Choose one and get started on a road we guarantee you won't regret.