About the author : Dave Dinkel

The cost of transactional funding can vary greatly and you should know ahead of time your total costs before engaging a transactional lender.


The fees a transactional lender can charge include but are not limited to:

  1. The Funding Fee for borrowing the funds for the actual double closing which can range from 1% to 2%+ for closings that require $1,000,000 or more which are usually negotiated.
  2. A Wire Fee to cover the lender’s cost of wiring his funds,
  3. A Minimum Fee that covers “smaller” amounts loaned to investors which can range from $350 to $1,495+,
  4. An Administrative Fee which is actually a “junk” fee as an additional profit source,
  5. A Cancellation Fee in the event the deal doesn’t close which can be from $399 to $750.

The fees mentioned in items 1 through 3 above are what an investor should expect to pay to use transactional funds.

The not-so-obvious costs of the transaction which can lose the deal for an investor are the lender’s ability to work with closing agents.

If the lender is unwilling to adjust to the closing agent’s requests for specific help, it could mean the end of the deal.

The closing agents usually have a set of “rules” they want to follow which can work if the transactional lender if has an open mind.

In more than a few cases, I have been asked to save a closing because of an inexperienced or inflexible transactional funder.

If you get into a bind or hit a roadblock with the closing agent or the transactional funder, you will likely have to change either one or both as quickly as possible, so you don’t lose the deal.

Either or both parties can be changed but you need your seller and end-buyer to agree because the change to another closing agent will require the title work to be started all over.

Above all, make sure your transactional lender is knowledgeable, experienced, and has plenty of 5 Star Google ratings so you can trust they will get you past any roadblocks you encounter.


If you have any additional questions, contact me directly at DaveDinkelQuestions@gmail.com.

If you need hard money instead of transactional funding, contact me for referrals to private hard money lenders.

Be sure to check out BestTransactionalFunding.com for all your same-day double closing needs, including a list of Investor-Friendly Closing Agents in various states.

We have more five-star Google ratings than all the other transactional funders combined.

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About the author : Dave Dinkel