Frequently asked questions
1 What is Transactional Funding?
Transactional Funding is a short term loan provided to wholesalers who purchase and quickly re-sell a property the same day. This is often called a "Double Closing" or a "Back to Back Closing". The seller of the property is typically called "Party A". The wholesaler is typically called "Party B". The end buyer of the property is typically called "Party C". Transactional Funding deals are also sometimes called "A-B - B-C" Transactions.
2 When is Transactional Funding Needed?
Our clients use our Transactional Funding Service for three basic reasons:
1. They have a contract that is NOT ASSIGNABLE to a third party. This is typical when purchasing properties off MLS, bank owned properties, or properties owned by government entities (HUD, FHA, Fannie Mae, etc).
2. The wholesaler is choosing not to assign the contract in order to maximize their wholesale markup. Many times end buyers will not purchase a property if the assignment fee is too high. You do not have to disclose your contract details to the end buyer when you utilize Transactional Funding.
3. The wholesaler needs to stay in compliance with State laws that do not allow assignment of contracts.
1. They have a contract that is NOT ASSIGNABLE to a third party. This is typical when purchasing properties off MLS, bank owned properties, or properties owned by government entities (HUD, FHA, Fannie Mae, etc).
2. The wholesaler is choosing not to assign the contract in order to maximize their wholesale markup. Many times end buyers will not purchase a property if the assignment fee is too high. You do not have to disclose your contract details to the end buyer when you utilize Transactional Funding.
3. The wholesaler needs to stay in compliance with State laws that do not allow assignment of contracts.
3 What are the Minimum and Maximum Funding Amounts?
We have no minimum funding amount. The maximum funding amount is $6,000,000
4 In What States Do You Provide Transactional Funding?
We provide Transactional Funding in all states EXCEPT New York, Utah, and California
5What are the Fees for Transactional Funding?
$1,250 flat fee for deal sizes below $100,000
1.5% for deal sizes above $100,000 up to $250,000
2% for deal sizes above $250,001 up to $1,000,000
2.5% for deal sizes above $1,000,000 and up to $6,000,000
Fees are based on your A-B contract purchase.
There are NO UPFRONT FEES, NO APPLICATION FEES.
THERE ARE NO FEES if the transaction does not close.
1.5% for deal sizes above $100,000 up to $250,000
2% for deal sizes above $250,001 up to $1,000,000
2.5% for deal sizes above $1,000,000 and up to $6,000,000
Fees are based on your A-B contract purchase.
There are NO UPFRONT FEES, NO APPLICATION FEES.
THERE ARE NO FEES if the transaction does not close.
6 Is a Credit Check Required to Qualify?
No. There are no personal financial requirements to obtain Transactional Funding. We do not run your credit and do not require bank statements, tax returns, etc.
7 Do I Have to Close with the Same Closing Office?
3x Lending requires both the A-B and the B-C transactions occur at the same settlement office or title company. Some exceptions are possible so please discuss your specific situation with a loan officer if your transactions are closing at different offices.
8Do you Offer Extended Transactional Funding?
EXTENDED TRANSACTIONAL FUNDING
Yes. 3x Lending will fund an Extended Transactional Funding deal.
This program is available only in: Alabama, Georgia, Indiana, Missouri, North Carolina, Ohio, Pennsylvania, South Carolina, Texas & Virginia.
- Loan Term: Maximum 3 months
- Property Types: 1 to 4 family. No condominiums. Fee Simple Townhomes OK.
- Credit Score of 675+ required
- Required Minimum Funding Amount: N/A
- Maximum Funding Amount: $500,000
- Interest Rate: 12% (monthly interest only payments due on the 1st of the month)
- Origination Fee: 3% of the loan amount or $3,500, whichever is greater
- Processing Fee: $499
- Doc Prep Fee: $499
- Valuation Required (hybrid appraisal)
- Closing time is 2-4 business days from the time we order the valuation
If you have an Extended Transactional Funding question or want to discuss a deal please call us at 470.905.3700.
9 Can I get a Proof of Funds Letter?
We offer free Proof of Funds letters to our transactional funding clients. Just click the Proof of Funds link on the home page to fill out the request form. We will email you the letter in PDF format within 1 business day.
10What Documents are Required?
- The A to B Contract
- The B to C Contract
- Drivers License of all Members / Shareholders / Partners of the borrowing entity
- Corporate Docs (Articles of Org / Incorporation, EIN, Operating Agreement)
- If the C Buyer (End Buyer) is getting a loan to purchase the property, please send any and all information from the lender (pre-approval, term sheet, etc)
- Closing Attorney Direct Contact Info (name, phone and email)
11How Quickly Can You Fund a Deal?
3x Lending can fund deals as quickly as the same day if all required documentation is provided from both our client and the title agent or closing attorney. However, we prefer to receive your submission and documentation once you have obtained your B to C Contract and you are ready for title to be started.