How It Works
“Double closing,” transactional funding is a short-term loan provided to wholesalers who purchase and quickly re-sell a property on the same day. The property seller is known as “Party A.” The wholesaler is “Party B.” The end buyer of the property is “Party C.” Transactional Funding deals are also sometimes called “A-B – B-C” Transactions.
Our clients use our Transactional Funding Service for two fundamental reasons:
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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.)
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The wholesaler chooses not to assign the contract to maximize their wholesale markup. End buyers may not purchase a property if the assignment fee is too high. When utilizing transactional funding, you do not have to disclose your contact details to the end buyer
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Chimba Capital Partners offers you (Investor B above) a private, 1-3 day bridge loan to buy Seller A’s property. We charge the most attractive competitive rates – only 1% versus the industry’s standard of 2-3% or higher and you don’t have to use one penny of your own money. On the same closing day, you sell the same property to End Buyer C. These two transactions, or closings, must take place on the same day (certain exceptions apply due to state regulations) and use the same title company or closing agent. The C end buyer's funds must already be in escrow when AB closing takes place.