If you have a signed contract and are wholesaling your deal to an end buyer, then if you are short on cash you might need transactional funding. Transactional funding is perfect for bank owned properties and short sales that you are flipping to an end buyer. Since banks do not allow assignable contracts you are going to need to schedule a double closing with your end buyer. Double closings also known as simultaneous closings allow you to schedule two back to back closings for the same property on the same day. You will need to have a source of funds to pay for the first transaction. This is where transactional funding (also known as same day funds) is needed.

If you have a deal in South Florida that needs transactional funding then we can fund your transaction. However, in order for us to fund your transaction we need to review it and make sure that it meets the following criteria:

We prefer that you use our Title Company for both closings

But if you have to use the seller's title company for the A to B closing that is fine.

However, you must use our title company for the second B TO C Closing if you want us to fund your deal

Independence Title
2201 W Prospect Rd, Suite 200
Fort Lauderdale, FL 33309
Tel:  954-335-9305
Fax: 954-335-9308
www.MyTitleCo.com

contact for transactional funding: Kevin Tacher or Tracy Quinn

How does transactional funding work?

If you are looking to flip a bank owned property then you will have two contracts and two closings. The first contract is between the bank (seller) and you (buyer). The second contract is between you (seller) and your end buyer (buyer). The end buyer is the person that will ultimately be the long term owner of the property.

Example of transactional funding for a double closing:

A – Bank
B – You
C – End Buyer

You have a contract with the bank to purchase a bank owned property at $40,000 (first contract). This is known as the A-B transaction.

You market this property to your cash buyers and you find a buyer at $50,000. You sign a contract with this buyer with you being the seller and them being the buyer (second contract). This is known as the B-C transaction.

The difference between the two contracts (after deducting closing costs) is your profit which you will walk away with at the closing.

Double Closings

Since there are two contracts there are two closings. This means you will pay double closing costs. There are ways to avoid paying double closing costs like using an entity such as a Land Trust or an LLC. There are advantages and disadvantages to using these methods.

What are the fees for transactional funding?

The transactional funding fee is 2% +$495 with a minimum fee of $1,250. For example if you were to request $40,000 your fee would be $800+$495=$1,295.

What if the bank insists on using their title company?

That is fine for the A to B closing but we will only provide transactional funding if you use our title company (Independence Title) for the second B to C closing.

What do I do if I find an end buyer?

You should always take a deposit from your end buyer that is at least twice the amount of your initial deposit and you should always only accept cleared funds like a cashiers check or wire directly to our title company. It is your responsibility to provide both contracts to our title company and to clearly label all cashiers checks and wires with the property address. It is also your responsibility to communicate with us about the deal.

Can you help me find an end buyer?

Yes, if we find a buyer for your transaction then we will split the profit with you 50/50. If we are providing transactional funding you will still be responsible for paying the transactional funding fee. Many of our buyers are looking for rental properties and first time home buyer properties that are valued at less than $75,000. The highest demand for housing exists at the lower price points of the market since there are first time home buyers and investors looking to buy these properties. We have many cash buyers for these types of properties in South Florida. We are looking for deals between Miami and Port St Lucie.

What areas are best for you?

We will provide transactional funding for properties that are located in Miami-Dade County, Broward County, Palm Beach County and St Lucie County. Since we are based in Boca Raton, we prefer properties that are within 30 minutes driving distance. Many of our deals are in Pompano Beach, Boynton Beach, Delray Beach, Lake Worth, West Palm Beach, Fort Lauderdale, Margate, Miramar, Coconut Creek, Coral Springs, and Hollywood.

How does the private mentoring program work?

Please visit the following link to learn more about the private mentoring program http://lexlevinrad.com/Mentoring.html

If you would like transactional funding for your deal

First speak to us and make sure that we are willing to transactional fund your deal. If you do not have the B to C contract with our title company (Independence Title) then we will not fund your deal. If you would like us to fund your deal then please submit the following:

Purchase and sale contract between the bank (seller) and you.
Purchase and sale contract between you (seller) and the end buyer
Proof of funds letter for end buyer
Deposit in escrow for both contracts (cashiers check or wire only)

PLEASE NOTE THAT THE BUYER ON THE FIRST TRANSACTION NEEDS TO BE THE SAME NAME AS THE SELLER ON THE SECOND TRANSACTION

Please fax all documents to 561-948-0410 or scan and email to wholesaledeals@lexlevinrad.com

If you have any questions about transactional funding, double closings and funding your wholesale deals please call Lex at 800-617-2884 ext 1 or send  an email to lex@lexlevinrad.com

If you would like to submit your wholesale deal for review then please complete the following Wholesale Deal Property Input Form which you can find at this link: http://bit.ly/8W6Jxg