Transactional Funding for Wholesale

February 25, 2021

transactional funding for wholesale real estate investors

Wholesale Real Estate Investors

Transaction Funding for Wholesale real estate investors allow them to purchase property for no money down and increase their profit with no increased risk. There are three primary strategies in real estate investing. They are Fix and Flip, Buy and Hold and Wholesale investing. Each strategy has its advantages. A fix and flip investor will buy a property, rehab it and then sell it. Fix and flip investors on average make the most money at the completion of their project. A buy and hold investor will buy the property and rent it our making their money monthly on cash flow. Generally, for the long term buy and hold investors can build life long cash flow and theoretically make the most money in the long term. Wholesale real estate investors often never but the property, yet sell them right away making a smaller profit quicker with little or no risk. Again, Transaction Funding for Wholesale real estate investors allow them to purchase property for no money down, no credit or income requirements and increase their profit with no increased risk.

Why Transaction Funding for Wholesale Real Estate Investors

There are many reasons wholesale real estate investors want transactional funding. Here are a few.

States Require a License: Some states have outlawed wholesaling real estate with out a real estate license. The idea is the wholesaler is selling a property they do not own. Those states have mandated an wholesaler to real estate sales or brokers license. Transactional Funding for Wholesale allows the investor to actually by the property and when the sell of the property happens, they are the owner, not a third party wholesaler.
Make More Money: The Wholesale real estate investors job is twofold. First they are to find property below market and help the seller sell their property. The second job is to find a buyer for the property. The wholesale real estate investor makes money on the difference between what they offer the seller and what the end buyer pays them. When the end buyer knows that they are getting a very good deal, they sometimes have to reduce their price. If the end buyer has no idea what the wholesaler paid for the property and can still buy it at an acceptable price, then the wholesaler will make more money.
Referral Fee From FBC Funding: When a wholesale real estate investor works with FBC Funding we will pay them a referral fee for any of their end buyers that we fund the loan to purchase the property.
Surety In Closing: An advantage for using Transactional Funding for wholesale real estate investors through FBC Funding while having their end buyer access funding through FBC Funding allows the wholesale real estate investor to know we will fund the loan when we say we will fund the loan. Many end buyers go to funding sources that may or may not do what they say they can do. With FBC Funding you know we will fund when we say we will.
Discounted Costs With FBC Funding: When a Wholesale Real Estate Investor uses FBC Funding for Transaction Funding and they refer there buyer for end funding, FBC Funding will offer a discount on the costs of Transactional Funding plus a referral fee for referring the end buyer the end buyer.

How Transactional Funding for Wholesale Works

Wholesaling real estate is with three parties and two transactions. Party A is the owner of the property. Party B is the wholesaler. Party C is the end buyer. Party A sales to Party B. In traditional wholesaling Party B sells to Party C without taking title to the property. With Transactional funding for Wholesale Party B is given a loan for the purchase of the property from Party A. On the same day Party C is given a loan to purchase the property from Party B. this can save you lots of headache as some lenders do not fund deals at all from wholesale real estate investors. With this system there is certainty and ease of funding plus the end buyer does not know or need to know how much the wholesaler made. If I can use an analogy, when you go to the store and buy a loaf a bread you know the store bought the bread at a wholesale price and sold it to you with a mark up for their costs and profit. They do not tell you what they paid for the bread. They do not have to because they bought it and sell it for what they want. You will only buy it if the price is not too high. this is the same with real estate.

Let FBC Funding help you Close more deals and make more money with Transactional Funding for Wholesale Real Estate Investors.

For more information call 888-848-3114 or click here to schedule a loan consultation You can also email louisj@fbcfunding.com

You can also click here to join FBC Funding referral program.