How do I structure a Transactional funding deal

[Damian Kennedy]

Hey Guys, I am new to wholesaling and I am looking for deals in my area off market. If I found a prooerty how do I structure the deal with transactional funding?

[Chris Mason]

Originally posted by @Damian Kennedy:

@Daniel Paloscio Thanks Daniel, I will definitely take your number down. Can transactional funding be used for FSBO/off market homes or just bank owned homes that cannot be assigned?

 Any of them. And since you actually take ownership of it, it's not technically wholesaling as that term is commonly used, and it's out of that legal gray area. Further, your buyers can use traditional gov't subsidized financing, meaning you will have a wider pool of potential buyers (including non-investors, ie people not obsessed with the lowest price possible), which generally leads to higher sales prices. 

I think that latter bit about retail owner occupant buyers using 30YF Fannie loans being able to buy it is why a lot of investors don't talk about this -- they want to be the only game in town, not competing with buyers allowing emotion and desire to live in the home get involved.