Looking for the best fast transactional lender? Let’s cut through the noise and get straight to what matters. In the fast-paced world of real estate investing, quick funding can make or break your deals—especially when you’re wholesaling or pursuing time-sensitive opportunities. With the right lender, you can close deals quickly and efficiently without tying up your own capital.
How To Find the Best Fast Transactional Lender
Not all transactional lenders are the same. The best lenders excel in providing speed, reliability, and transparency. They cater to real estate investors who need funding solutions tailored to double closings, earnest money deposits (EMD), or seller carryback transactions.
Key Features of Leading Transactional Lenders
The top transactional lenders offer:
- Same-Day Funding Capability: Approvals and disbursements when you need them most.
- No Credit Checks Required: Focused solely on the deal.
- Transparent Fee Structures: Clear, flat-rate fees with no hidden charges.
- 100% Financing: Covers the purchase price entirely.
- Minimal Documentation Requirements: Streamlined paperwork for faster processing.
Understanding How the Best Fast Transactional Funding Lenders Master the Basics
Transactional funding acts as a short-term bridge for real estate deals, such as back-to-back closings. It’s designed for scenarios where capital is needed for only 24-72 hours. The best lenders understand that timing is critical and structure their services to meet these demands.
How Fast Transactional Funding Works
Here’s a breakdown of the process:
- Secure a Property: Get the property under contract with the seller (A-B contract).
- Line Up an End Buyer: Establish a sales contract with your buyer (B-C contract).
- Obtain Funding: The lender funds your purchase price for the A-B transaction.
- Complete Both Closings: Execute the A-B and B-C transactions, often on the same day.
- Repay the Lender: The lender is repaid directly from the proceeds of the B-C closing.
Costs Associated with Fast Transactional Lenders
Oakstone Lending provides transparent and competitive fee structures for different funding scenarios:
EMD Lending
Earnest money deposit funding ensures you can secure deals without tying up your own cash.
- Flat Return Rate: 40% on the EMD amount, with a $2,000 minimum return.
- Non-Refundable Fee: $250 transaction coordinator fee, paid upfront.
- Repayment Terms: Return includes the principal plus 40% upon deal closure.
Example: If you borrow $5,000 for an EMD, your repayment will be $7,000 ($5,000 + 40%) after closing.
Double Close Funding
Double closings require precise timing and reliable funding.
- Flat Fee: 1.5% on all double closings with at least one week’s notice.
- Rush Fee: Additional 1% for expedited funding requests.
- Minimum Return: $2,000 minimum fee on smaller deals.
Example: For a $100,000 double closing, the standard fee is $1,500 (1.5%). If expedited, an additional $1,000 rush fee applies.
Seller Carryback Funding
Seller carryback funding supports creative financing structures.
- Flat Fee: 2.5% for seller carryback deals with at least one week’s notice.
- Rush Fee: Additional charges for expedited funding.
- Minimum Return: $2,000 on smaller deals.
Example: For a $500,000 seller carryback transaction, the fee is $12,500 (2.5%), resulting in a total repayment of $512,500.
Documentation Requirements
Top-tier transactional lenders, including Oakstone Lending, keep the documentation process straightforward:
- A-B and B-C Contracts: Signed agreements for both transactions.
- Entity Documentation: If using an LLC or corporation.
- Basic Personal Information: Contact details and identification.
- Title Company Information: Contact details for the closing agent.
Speed of Funding
Fast transactional funding is designed for speed. At Oakstone Lending, you can expect:
- Same-Day Funding: Available for applications submitted early in the day.
- Typical Turnaround: 1-3 business days for most deals.
- Potential Delays: Often due to title company processing rather than the lender.
Common Pitfalls to Avoid
Even with reliable lenders, challenges can arise. Avoid these common pitfalls:
- Hidden Fees: Ensure all charges are disclosed upfront.
- Excessive Documentation: Work with lenders who streamline the process.
- Poor Communication: Look for lenders with responsive customer support.
- Unrealistic Timelines: Plan ahead to avoid unnecessary rush fees.
- Required Credit Checks: Choose lenders focused on the deal, not your personal finances.
Best Practices for Working with Transactional Lenders
To ensure a smooth and successful transaction:
- Organize Documentation: Have all required contracts and paperwork ready.
- Confirm Execution: Ensure A-B and B-C contracts are properly signed.
- Work with Experienced Title Companies: Avoid delays caused by inexperienced agents.
- Communicate Openly: Keep all parties informed throughout the process.
- Understand All Fees: Clarify all costs upfront to avoid surprises.
When to Use Fast Transactional Funding
This type of funding is ideal for:
- Wholesale Double Closings: Back-to-back transactions requiring quick funds.
- Quick Flips: Short-term deals with immediate resale.
- Proof of Funds: Securing deals that require financial backing.
- Time-Sensitive Opportunities: Deals with tight closing timelines.
Scaling Your Business with a Reliable Transactional Lender
Building a relationship with a dependable lender like Oakstone Lending allows you to:
- Expand Your Portfolio: Take on multiple deals simultaneously.
- Close Faster: Gain a reputation for speed and reliability.
- Build Credibility: Strengthen trust with buyers and sellers.
- Reduce Stress: Simplify the funding process for greater focus on deal-making.
The Future of Fast Transactional Lending
The transactional funding industry is evolving with:
- Digital Documentation: Streamlined paperwork for faster approvals.
- Competitive Fee Structures: Increased transparency and affordability.
- Enhanced Technology: Faster wire transfers and transaction tracking.
Closing Thoughts
Finding the best fast transactional lender is about more than just low fees—it’s about reliability, speed, and transparency. With Oakstone Lending, you’ll benefit from straightforward terms, competitive rates, and the experience of a trusted partner who’s ready to fund your next deal.
Whether you’re closing a double flip, securing an EMD, or arranging seller carryback financing, Oakstone Lending provides the tools you need to scale your business and close deals with confidence. Ready to take the next step? Contact us today and let’s make your next deal happen.
