We understand the process from start to finish. We know the challenges you face because we’ve been in your shoes.

Our Transactional Loan provides real estate wholesalers with a reputable and trusted alternative to traditional lenders who don’t understand the challenges you face.
 

Our fast and simple transactional funding programs are designed to give real estate wholesalers the financial tools needed to achieve cash flow as quickly as possible.

 When is transactional funding needed?

 Our clients use our Transactional Service for two fundamental reasons:

1. They have a contract that is NOT ASSIGNABLE to a third party. This is typical when purchasing properties off MLS, bank-owned properties, or properties owned by government entities (HUD, FHA, Fannie Mae, etc.)
2. The wholesaler chooses not to assign the contract to maximize their wholesale markup. End buyers may not purchase a property if the assignment fee is too high. When utilizing transactional funding, you do not have to disclose your contract details to the end buyer.

Q. Are there minimum and maximum funding amounts?

A. No. And we are proud to be the industry leader in funding large deals of over $1 million for real estate wholesalers.

Q. Is credit a factor to obtain transactional funding?

A. No. There are no personal financial requirements to obtain transactional funding. We do not run your credit and do not require bank statements, tax returns, etc.

Q. I work in a different state than your office. Will you still lend to me?

A. Yes! We help to fund real estate wholesale deals across the U.S., excluding Alaska, Hawaii and New York. Our goal is to empower wholesalers nationwide to close on more deals and keep more of their profits!

Q. Do I need to come into your office to sign papers?

A. No! Our process makes it easy to quickly access funds remotely. We make the process simple for all borrowers. Signatures can be completed digitally, making the process simple for you.

Q. How quickly can you provide transactional funding?

A. We can provide the best transactional funding almost immediately. Reach out to us today to learn more about what we can offer you!

Q: Do you provide proof of funds letters?

A: Yes! Our Loan Approval letters are available to you.

What is real estate wholesaling?

If you want to enter the world of real estate investing, real estate wholesaling is one of the ways to do that with the fewest barriers to entry. Simply put, a wholesaler is someone who acts as a middleman between a seller and buyer in a real estate transaction. Wholesalers who can facilitate a steady stream of home sales can make significant money — all without having to invest a ton of cash up front, get licensed (in most states) or deal with complex issues like construction or DIY rehabbing.

Wholesalers typically coordinate the sale of distressed properties, which are usually homes that are in default, being foreclosed upon, “real estate owned” (REO) or otherwise being sold to settle a debt. The owners of these properties are highly motivated to sell — usually as quickly as possible — but need help finding buyers who are willing to buy. The properties are often in disrepair, since homeowners with serious financial troubles aren’t typically able to keep a house in tip-top shape.

* Unlike house flippers, wholesalers get distressed properties to closing without making any improvements to them.

Wholesalers use two general methods to close a sale:

• SELLING OR “ASSIGNING” A CONTRACT

Assignment contract wholesaling is when a wholesaler finds a seller willing to put their house under contract for an agreed-upon price. The wholesaler then turns around and finds a buyer willing to pay more than that price, transfers (“assigns”) the contract to that buyer and pockets the difference when the sale closes as an assignment fee.

• A DOUBLE CLOSE 

In this transaction, a wholesaler will purchase the property with a (Transactional) loan before selling it to a buyer. However, the wholesaler arranges for their purchase to overlap in time with the buyer’s purchase. If a double close is timed correctly, a wholesaler can own a property for only a few days or even just a few minutes. The wholesaler will make their money by profiting from the sale directly, since they are technically the seller.

Here’s an example of how assignment contract wholesaling works:

First, a wholesaler finds someone who agrees to sell their home.

Let’s say the seller wants $90,000 for their property.

The seller enters into a purchase agreement contract with the wholesaler, but the wholesaler doesn’t buy the property outright.

The signed contract gives the wholesaler the right to buy the home, but now the wholesaler turns

to their networks to find a buyer willing to pay more than $90,000 to buy the property.

The wholesaler can find a buyer who agrees to pay $100,000 for the property and then sells the contract to them.

The property is bought for $100,000 and sold for $90,000; the difference is the wholesaler’s fee.

Step by step: Wholesaling real estate

For this example, we’ll stick with assignment contract wholesaling because it’s the best way to get into wholesale real estate with no money, no licensing and no credit requirement.

Step 1: Identify motivated sellers

In general property sellers want to get as much money as they can for their homes, even if aiming for that goal means the sale will take some extra time. However, as a wholesaler, you want to target a slightly different demographic: sellers who are motivated to sell their homes quickly and with as little hassle as possible, even if it means lowering the price. This discounted price gives you some headroom to set a higher price when you approach buyers later.

* Here are some ways to find motivated sellers:

• Search for homes that have been on the market for a long time or have been taken off the market.
• Look for homes that are vacant or neglected.
• Search public records to find homeowners who are in default and facing foreclosure or have liens or judgments against their homes.
• Use advertising methods like direct mail, TV and radio spots or Facebook ads to find homeowners who want to sell a home quickly.

Step 2: Make an offer

Before you make an offer to a seller, you should look over the property closely — or, if you’re out of state and operating virtually, gather as much information on it as you can — to estimate the state of the home. How much money would someone need to put into repairs or renovations in order to earn a higher price when they resell it?

The amount a wholesaler offers to the seller should factor in:

• Repair costs
• Buyer’s holding costs
• Closing costs
• The buyer’s end profit
• The wholesaler’s fee

Step 3: Enter a contract

When you and the seller come to an agreement, both parties will sign a purchase agreement — a contract that gives you the right to purchase the property at the agreed-upon price. A typical wholesaling contract permits you to assign the contract to a third-party buyer. A real estate attorney who works with investors and wholesalers can help you draft a contract that follows your state’s laws.

Step 4: Find a buyer and assign the contract

At this point in the process, you will find a buyer — often a real estate investor with cash — who wants to buy the property. Once you agree on a price, you’ll assign the contract to them using an assignment of contract. Assigning the contract means transferring your role to the buyer, giving them the right to buy the property for the price listed in the contract. As a wholesaler, you’ll earn an assignment fee from the buyer when you sell the buying rights.

It can be helpful to build up a list of real estate investors who want to buy distressed properties before you enter into a wholesale contract.