What Is Transactional Funding?
Transactional Funding is money borrowed for a few hours to purchase a property in order to resell the same property within the same day. This is generally known as a simultaneous or double close. Transactional Funding is not required if the purchase contract is assignable.
How Does It Work?
Transactional Funding is required when there are two contracts requiring two separate closings. For example, when Bank/Reo/Short Sale (Seller A) has a contract with You (Buyer B) to purchase a property for $50,000 and you (Seller B) have a contract with an End-User (Buyer C) to sell the same property for $60,000.
The 1st closing is called the A-to-B Closing, with Bank/Reo/Short Sale (Seller A) selling to You (Buyer B). The 2nd closing is called the B-to-C Closing with You (Seller B) selling to End-User (Buyer C).
On closing day, we will wire funds to the Closing Agent for the A-to-B Closing totaling the amount of the purchase price plus closing costs on the HUD-1 Settlement Statement. On the same day, after the B-to-C Closing, the total amount of Transactional Funding will be refunded to us by the Closing Agent.
We offer Transactional Funding for all property types, including single family, multi-unit condos, villas, townhomes, income properties, commercial apartment buildings and land. We “DO NOT” provide Transactional Funding for more than one business day.
How Do Get Funding?
We will need the following items to provide funding;
1. Contact Info for Closing Agents
2. Copy of Identification
3. Copy of Articles of Corporation
4. Copy of Land Trust for “Buyer A”, if applicable
5. Copy of A-to-B contract/short sale approval
6. Copy of B-to-C contract
7. "No" Background or Credit Check Required
How Much Does It Cost?
Transactional Funding rates are $750 or 1% of the total purchase price, whichever is more, at closing. There are "No" other costs or fees associated.