Transactional Funding

[Sean Brennan]

I know that in wholesaling the simplest route is to assign the purchase contract. In addition, my closing attorney said that he can complete a double closing in which the end buyer funds both transactions. If this is the case, under what circumstances would you need or want to use transactional funding? Ann Bellamy I would love to hear your comments on this. Thanks!

[Shari Peterson]

Sean, if your closing attorney can complete the double closing as you describe, you would have no need for transactional funding. Luckily for some investors such as you, there are closing agents/attorneys who still conduct this type of closing. It is called a "dry closing", and means the the end buyer's funds are used to purchase the property, and then are passed through in escrow for you to close and fund your purchase. The whole transactional funding business began when closing agents/attorneys stopped doing dry closings in response to the banking crisis and scrutiny on real estate investor flip deals.