What Is Transactional Funding?

Transactional funding is a short term loan provided to wholesalers who purchase and re-sell a property the same day. This is often called a “Back to Back Closing” or "Double Closing." The seller is typically called "Party A.” The wholesaler is typically called "Party B." The end buyer of is typically called "Party C." Transactional funding deals are also sometimes called "A-B - B-C" transactions.

When Is Transactional Funding Needed?

Transactional funding is typically needed in these situations:

  1. You have a contract that is not “assignable” to a third party. This is common when buying houses off-MLS, bank owned properties, or properties owned by government entities.
  2. You (the wholesaler) choose not to assign the contract in order to maximize your wholesale fee. Some end buyers will not buy a house if the assignment fee is too high. With transactional funding, you do not have to disclose your fee to the end buyer.
  3. You (the wholesaler) needs to stay in compliance with state laws that do not allow assignment of contracts.

Does Personal Credit Matter?

No. This is asset-based lending, so your credit, debt, and personal financial history do not matter. No credit checks, bank statements, or income documentation needed!

What Are Your Fees?

4% plus a $1,000 doc fee (up to $500,000). Above $500,000 is priced on a deal-by-deal basis.

Do I Have to Close With the Same Closing Office?

Yes, JLN Capital Group requires both the A-B and B-C transactions occur at the same settlement office or title company.



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