Transactional Funding for Wholesale Transactions

[Quincy Baker]

Good morning BP,

I apologize if my question is somewhat fundamental, I'm new to the business and some of my questions will reflect my learning.

Q: When using transactional funding to fund the A-B of a wholesale deal, is it common practice to include the TF costs in the ask price? That is- knowing what the TF cost would be, factor those costs into the ask price (within the B-C agreement between yourself and the buyer) to maximize your profit? In other words simply treating TF costs as a part of overall closing costs to be satisfied in the buyers agreement? Is this something common or frowned upon for any reason?

I particularly also invite the feedback of anyone working in the TF business as well.

Thanks BP