How Transactional Funding Works
If you have a signed contract and are wholesaling your deal to an end buyer but don’t have enough cash to close, you may need transactional funding. This type of short-term funding is ideal for bank-owned properties and short sales, since banks typically do not allow assignable contracts.
Double Closing
You’ll need to schedule a double closing (also called a simultaneous closing) with your end buyer.
This means you’ll have two back-to-back closings for the same property on the same day.
You must have funds available for the first closing — that’s where transactional funding comes in.
If your deal is in Florida, we can fund your transaction once it meets our criteria.
Requirements for Transactional Funding
-
We prefer that you use our preferred title company, Independence Title, for both closings. It’s easier to coordinate both closings at the same location.
-
If the bank requires you to use the seller’s title company for the A-to-B closing, that’s acceptable — as long as the B-to-C closing is done through our approved title company. But in almost all cases the bank will allow you to choose the title company – so you should always choose to use Independence Title for both closings.
Our Preferred Title Company (Florida):
Independence Title
4700 W Prospect Rd #115,
Fort Lauderdale, FL 33309
Tel: (954) 335-9305
www.titlerate.com
How Transactional Funding Works
When flipping a bank-owned property, you’ll have two contracts and two closings:
-
A–B Transaction: Between the bank (seller) and you (buyer).
-
B–C Transaction: Between you (seller) and your end buyer (buyer) — the person paying cash and ultimately taking ownership.
You are the buyer in the first contract and the seller in the second.
Example of Transactional Funding
A – Bank
B – You
C – End Buyer
-
You buy a property from the bank for $90,000 (A–B contract).
-
You sell it to your cash buyer for $100,000 (B–C contract).
-
Your gross profit is $10,000, but you must deduct:
-
Closing costs for both transactions
-
Transactional funding fees
-
These deductions can significantly reduce your net profit. That’s why we recommend our students make offers in land trusts to avoid paying double closing costs (when it is legal to do so).
Double Closing Costs
Because there are two contracts, there are two separate closings — meaning double closing costs.
In the past, banks allowed dry closings, where the end buyer’s funds covered the A–B purchase.
However, new regulations (especially for short sales) require wet closings, meaning both closings must be fully funded.
This increases your out-of-pocket costs.
Fees for Transactional Funding (Florida)
-
Funding Fee: 2% of the purchase price
-
Transaction Fee: $495
-
Minimum Fee: $3,000
Example:
If your purchase price is $300,000, your fee would be:
2% of $300,000 = $6,000
-
$495 transaction fee = $6,495 total
Please note:
-
Transactional funding fees are separate from closing costs.
-
Closing costs are charged by the title company and are not related to us.
-
We have no ownership interest in the title company.
Both Closings at Our Title Company
Both closings must be at Independence Title. the A-B Closing and also the B–C closing must be at Independence Title. We will not fund your deal otherwise.
Wholesaling or Flipping the Property
If you want us to market your deal to our students then submit it at www.submitmydeals.com.
Submitting Your Deal to the Title Company
You must submit:
-
Both signed contracts
-
A description of the transaction
It’s your responsibility to:
-
Provide all documents to Independence Title
-
Clearly identify yourself as a student in our real estate training program
-
Label all emails and contracts and wires with the property address and your name
-
Contact us at least three weeks before closing if you want us to fund the deal
Partnering with Us on Deals
If we market your deal and find a buyer:
-
We’ll fund your deal for free, and
-
We’ll split profits 50/50 (net of closing costs).
Submit deals for partnership consideration at www.submitmydeals.com.
What Our Buyers Are Looking For
Our buyers are rehabbers and landlords seeking:
-
Fix-and-flip opportunities
-
Cash-flowing rental properties
Buyer demand is strongest at entry-level price points — properties with solid profit margins between ARV and purchase price. As property prices increase, buyer demand decreases, and the likelihood of funding drops.
Focus on affordable homes in your target market.
High-Demand Areas in Florida
We have strong buyer demand statewide, especially in:
- Miami-Dade County
- Broward County
- Palm Beach County
- Brevard County
- St. Lucie County
- Orange County
- Okeechobee County
- Martin County
- Indian River County
- Polk County
- Pasco County
- Manatee County
- Hillsborough County
- Lake County
- Hernando County
- Marion County
We also have many active buyers all over the State of Florida including all of Central Florida, Ocala, Tampa, St. Petersburg, Jacksonville, and Orlando. Currently, all regions of Florida show high investor interest.
Do I Have to Be a Student?
Yes.
We only fund deals or partner with current students in our Partnership Program which is part of our real estate training program.
Legal and compliance regulations require this structure. We teach this method at our Boot Camps, where students can become deal finders (bird dogs) for other students who are looking for rentals and fix and flips. The details of our Partnership Program are explained fully at the Wholesaling Real Estate Boot Camp