Wholesale Real Estate Funding

Wholesale Real Estate Funding

Same day funding also known as transactional funding or flash funding is a powerful financing options for wholesalers or real estate investors.

Flash funding allows a wholesaler to purchase a property then sell it to an and buyer. There is no down payment required and the loan will cove all closing costs of the sale of the property. Fee for same day funding usually range from $2,000 to $5,000 depending on the loan size and lender’s fees.

How same day funding work is when a purchase agreement is signed. The middle buyer then goes to the end buyer to get a purchase agreement signed. The purchase price on that agreement should be enough to cover the original purchase price, cost, and the wholesale fee. Then both contracts are submitted to the lender for approval. Once approved the fund are released once the end buyer wire the funds close out the purchase sale. Once the fund is confirmed the same day lender releases the funds to fund the middle buyer’s purchase transaction.

Some typical scenarios where same funds are used are REO purchases, short sale or wholesale deal with assignment fee at $2-5K or more. Same day funding is also very commonmly used for large commercial real estate transactions and note portfolio sales.

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