Real Estate Closing Attorney Loves Transactional Funding?

Why Do Some Closing Attorneys Love Transactional Funding?


Real estate closing attorneys, title companies and closing agents in general have strong opinions about real estate investors.  Some of these people are investor oriented and others are downright confrontational.  Much of these opinions are centered around previous interactions or non- interactions with investors.


 The real estate closing agents who do a substantial non-commercial real estate business have to be investor friendly.  The real estate investing community is a relatively small community of like-minded individuals who make money by buying and selling single-family and multi-family homes.  Referrals to like-minded closing agents help build practices very quickly; likewise, negative feedback can slowly kill closing agents’ business.


There are some closing agents who are affiliated with Realtors® and may even be completely or partially owned by the real estate brokerage.  They exist by referrals from agents to stay in business and are sometimes unfriendly to real estate investors.  Then there are law firms that do real estate closings as a sideline to their regular practice of general law.  These types of firms do not rely on investors doing double closings to survive.


The closing of a real estate transaction has a limited amount of income potential for closing agents.  The amounts and reasons for charging closing fees is limited so successful agents focus on high volume repeat business or high fees.  Overcharging investors will not keep them coming back.


The more successful option for closing agents is working with repeating clients and working with investors who have limited funds.   The conventional belief is that anyone buying a property must have the money to pay for it at closing or borrow this same amount of money. 


Many successful investors do not have the money nor can they borrow money to close and hold a property.  However, they can use transactional funding or so-called flash funding to buy and sell properties worth thousands or hundreds of thousands of dollars.


The most successful real estate closing agents and attorneys understand the use of transactional funding and embrace its use as a one-day funding technique for closing real estate transactions.  In some instances this process of transactional funding of the investor’s purchase is so ingrained, that the closing agents have made a secondary business of supplying transactional funding. 


Ask yourself this question, “Does it really matter how or where the investor-buyer gets the money to close so that everyone is paid?”


If  the transactional funding lenders were not accessible many of the real estate closing attorney’s business would not be able to close at all.


When your real estate closing attorney understands the power of transactional funding lenders to help get deals closed they love working with the transactional funding lenders!

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