$98MM Transactional Funding Deal

[Marty Johnston]

Hello, BP!

So I was encountered by a borrower who is a wholesaler, and has multiple deals in CA. He wants to use transactional funding for all of them, not assignment of contract because he prefers the seller and end buyer not know his profit margins. The first deal presented, and purpose of discussion, is a Transactional funding deal for $98MM. We have done deals in CA before, but never to this degree, and our traditional lenders we work with are not interested in a deal of this magnitude. This is a same-day double close deal with low risk, but I'm having trouble finding lenders interested in doing this, some is due to capital restraints, others don't say.

Because I've never done a TF deal of this size, I'm not quite aware of what I might be missing? Are there legal aspects in CA that are different for these larger transactions? Something I should be aware about? Is there a very specific way we need to structure this? Not possible?

All comments welcome!

Thanks in advance.