Premier Transactional Funding

Empowering Real Estate Investors and Wholesalers with Fast, Reliable Double Closing Solutions

What Is Transactional Funding?

Transactional funding is a specialized financing solution designed to facilitate real estate transactions that require a double closing. This type of funding caters specifically to investors and wholesalers who need to quickly purchase a property before immediately selling it to an end buyer. Here, we delve into the intricacies of transactional funding, offering insight into how it functions, and underscore its pivotal role in successful real estate investing.

Transactional Funding Definition and Core Concepts

Transactional Funding Explained: A short-term loan that covers the purchase price of a property for an investor or wholesaler. The loan is used to fund the first transaction of a double closing, with the sale to the end buyer funding the second transaction and paying off the loan.
Double Closing Mechanics: Clarification of the double closing process, where the investor or wholesaler simultaneously buys and sells a property, often on the same day. This section elucidates how transactional funding bridges the gap between these two transactions.

The Utility of Transactional Funding

Speed and Efficiency: Emphasizes the swift nature of transactional funding, which can be crucial in deals where time is of the essence.
No Out-of-Pocket Costs: Highlights how transactional funding allows investors to engage in deals without requiring significant upfront capital, facilitating greater leverage and flexibility in their investment strategies.
Risk Mitigation: Discusses how transactional funding reduces financial risk by not requiring long-term financial commitments, as the loan is typically repaid within hours or days.

Advantages over Traditional Funding Methods

No Credit or Income Verification: Unlike traditional loans, transactional funding often does not require a credit check or proof of income, as the loan is secured by the imminent sale of the property.
Designed for Wholesalers and Flippers: Points out that this type of funding is tailor-made for the unique needs of real estate wholesalers and flippers, who may not benefit from traditional financing options.
Streamlined Process: Transactional funding offers a more streamlined and less bureaucratic process compared to conventional loans, making it ideal for quick turnarounds in the real estate market.

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Wholesaling Real Estate with Transactional Funding

Wholesaling in real estate is a strategic approach that allows an investor, known as a wholesaler, to facilitate the sale of a property without having to purchase it outright. This process typically involves entering into a contract with a seller and then assigning or selling that contract to an end buyer for a profit. However, there are scenarios where a simple contract assignment is not feasible or preferred by the parties involved. This is where transactional funding becomes an indispensable tool for the wholesaler.

The Role of Transactional Funding in Wholesaling

Transactional funding serves as a bridge, providing the necessary financial support for wholesalers to execute a double closing. In a double closing, the wholesaler temporarily purchases the property from the seller using funds from a transactional lender and then immediately sells the property to the end buyer, repaying the loan in the process. This method requires two separate sets of closing documents and effectively completes two transactions back-to-back.

Facilitating Deals with Pre-Arranged Buyers

One of the critical advantages of transactional funding in wholesaling is its ability to facilitate deals when a wholesaler has already lined up an end buyer but needs to first acquire the property from the seller with a simplified process:

Contract Formation:
The wholesaler agrees on a purchase price with the seller and enters into a contract, securing the right to buy the property.
End Buyer Identification:
Simultaneously, the wholesaler identifies an end buyer willing to purchase the property at a higher price, creating the profit margin.
Transactional Funding Application:
The wholesaler applies for transactional funding, providing details of the deal, including purchase and sale contracts.
Expertise, Support, and Assistance:
We're more than just a provider of financial solutions; we see ourselves as your trusted partner on the path to real estate success. Our team is here to offer support, answer your queries, and share valuable knowledge to guide you through the intricate world of real estate dealings.

We Are Your Go-To Transactional Funding Lender

In the fast-paced realm of real estate investment, especially when it involves the nuanced strategy of double closings, the choice of your transactional funding partner is crucial. Our dedication to providing agile, straightforward, and robust funding solutions is what sets us apart. Here’s why investors and wholesalers dedicated to double closing strategies prefer us for their transactional funding needs.

Specialized Double Closing Guidance

Benefit from our targeted expertise in transactional funding tailored specifically for the intricacies and demands of double closings.

Streamlined Double Closing Funding Process

Our process is designed for the unique speed and efficiency required in double closing transactions, ensuring you move from offer to profit with minimal delay.

Double Closing Support

Beyond funding, we offer a partnership that extends through the entirety of your transaction, providing resources and guidance to ensure your success.

Competitive Rates

Take advantage of our transparent, competitive rates structured to support the profitability of your double closing deals.

Proven Success in Double Closing Transactions

Our track record is a testament to our ability to navigate the complexities of double closing transactions, underscored by glowing testimonials from our clients.

Access to Double Closing Experts

Directly connect with our team of double closing specialists for real-time advice and comprehensive support throughout your transaction.

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How Transactional Funding Works

Step 1: Securing the Purchase Agreement

The adventure kicks off the moment you ink a deal with a seller, securing your legal claim to buy the property. This pivotal action lays the groundwork for your transaction, signifying your plan to purchase and swiftly sell the property without aiming for long-term ownership.
Step 2: Pinpointing the End Buyer

Once the property is under contract, the next crucial move is to identify a buyer ready to acquire the property from you at a higher price, which in turn spells out your profit.
Step 3: Obtaining Transactional Funding

Armed with the acquisition contract and the resale agreement to the end buyer, you approach a lender specializing in transactional funding. Presenting these agreements, you apply for the necessary funds to complete the purchase. The lender evaluates the feasibility of the deal, the credibility of all parties involved, and the anticipated timeline for closure before approving the funds.
Step 4: Facilitating the Acquisition

With the transactional funding in hand, you advance to close the purchase deal. The funds from your lender are utilized to cover this cost, temporarily placing the property under your ownership.
Step 5: Realizing the Resale

Subsequent to the acquisition, you sell the property to the identified end buyer in a second closing session. This typically unfolds right after the first closing, ideally on the same day or within a brief interval.
Step 6: Repaying the Transactional Loan

The income from selling to the end buyer is directed towards settling the transactional funding loan, along with any pertinent fees or interest. The surplus—what remains after subtracting your buying cost and selling price, minus any transactional expenses—is your earnings.
Step 7: Wrapping Up the Double Closing

Now that the property is successfully transferred to the end buyer, the loan is repaid, and your profit realized, the double closing transaction reaches its culmination. This marks the fruitful completion of a double closing venture, accomplished without the need for substantial capital investment on your part.

Transactional Funding Double Closing Details

Fast approval and delivery of funds

Funds are lended out for 24-48 hours

Asset types: single family, multi-family residential, multi-family commercial, mobile home parks, RV parks, and self-storage

Verification of title companies and/or attorneys involved is required

Loans are up to $10,000,000 dollars

Need more than 10 million? Contact Us

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Frequently Asked Questions

+ What is the first step to obtain transactional funding from your company?

The initial step is to send us 2 purchase contracts. One for A-B transaction and another one is for B-C transaction. Second step is to introduce us to your title company or closing attorney. We need to vet them and ask a few essential questions. Once this vetting process is complete and the contract is signed, we are set to fund your deal within 24 hours.

+ What documentation is required for funding approval?

The primary documents we require is the purchase agreement for the property involved between a seller and wholesaler (A-B) and wholesaler and a buyer (B-C). Beyond this, we pride ourselves on a streamlined process that does not demand deposits upfront, documents, credit checks, or pay stubs.

+ How quickly can I receive funding once everything is in place?

After the necessary vetting and paperwork are in order, we can provide funding within 24 hours. Our process is designed to be fast and efficient to meet the needs of real estate investors and wholesalers.

+ Are there any upfront costs or deposits required?

No, we do not require any deposits upfront. Our fee is settled at closing, which will be detailed on the HUD (Housing and Urban Development) statement.

+ What is the term length for the transactional funding?

The standard term for our transactional funding is 24 hours. However, we are flexible and can extend the term on a case-by-case basis, depending on the specifics of the deal.

+ How much can you lend for a single transaction?

We offer lending up to $10 million for a single transaction. For larger deals, we are open to discussing and potentially increasing the funding amount on a case-by-case basis.

+ Is there a limit to how many deals I can finance with you?

No, we do not set a limit on the number of transactions you can finance with us. Our goal is to support your real estate investment endeavors, whether they involve single or multiple properties.

+ Do you take equity in the property as part of the funding agreement?

No, we do not take any equity in the property. Our funding model is designed to support your investment without us taking an ownership stake in the property.

+ Can I obtain transactional funding for properties in any state?

Please contact us directly to discuss the specifics of your deal and location. While we strive to accommodate a wide range of transactions, certain legal and logistical considerations may apply depending on the property's location.

+ Where do you send funds to?

We disburse funds directly to the title company or attorney handling the transaction. We do not send funds to personal bank accounts to ensure a secure and professional handling of all financial transactions involved in the closing process.

+ What happens if the deal extends beyond the agreed term?

We understand that real estate transactions can be dynamic. If a deal requires more time than initially agreed upon, we assess the situation on a case-by-case basis to provide a solution that works for all parties involved.

Hear From Our Clients

We have been extremely grateful for how simple and fast Y2 Lending has been to work with. We have done a transactional funding deal and a few fix and flips with Y2 Lending. Using 10+ different hard money lenders and private lenders in the past, Y2 Lending has by far been the best to work with, easy to communicate with and very dependable.

Ryan A.

CC Home Solutions, LLC

Working with Y2 lending helped me get my deal closed fast. I called Eugene and within 7 days I had funded my project. He was flexible on lending terms based on the performance of the project and has been a pleasure to do with throughout the entire process. I will definitely use Y2 Lending again and definitely recommend to other investors.

Johnoson C.

Grab The Map, LLC

Y2 lending really helped my business with our financial goals. I worked with Eugene and he was incredibly professional. Everything was on time, he showed great character, and overall made the experience really easy. Every time I even have the possibility of a lending situation I consult Y2 lending first. Y2 lending and Eugene really are amazing!