Financing

What documents do transactional lenders need to fund your wholesale deal?

Transactional lenders primarily need to see a valid contract with your seller, a corresponding assignment contract with your end buyer, and proof the end buyer has funds. They focus on the specific deal's structure and the end buyer's ability to close, not your personal credit or the property's long-term value.

October 11, 2026 · 3 min read

The core contracts: purchase agreement and assignment

The first and most critical documents a transactional lender will require are the fully executed purchase agreement between you and the seller, and the executed assignment contract between you and your end buyer. These two contracts form the foundation of your wholesale deal, outlining the terms of both transactions.

The purchase agreement confirms your right to buy the property, while the assignment contract shows you are legally transferring that right to your end buyer. The transactional lender needs to see that both agreements are solid and complete before he or she will fund your side of the acquisition.

Proof of funds from your end buyer

Transactional funding relies heavily on your end buyer's ability to close the deal. Therefore, the lender will always ask for proof of funds from your end buyer.

This proof typically comes in the form of a bank statement, a letter from his or her bank, or a screenshot of his or her investment account, demonstrating that the end buyer has sufficient capital to complete the purchase at the assigned price. The lender needs to be confident that the money will be there at closing.

Title commitment and closing instructions

A title commitment from a reputable title company is essential. This document confirms the property's title is clear or identifies any issues that need to be resolved before closing. It also outlines the necessary steps for a smooth transfer of ownership.

Additionally, the transactional lender will need the closing instructions from the title company. These instructions detail all the financial aspects of the transaction, including where the funds need to be wired and the final disbursement breakdown.

Your entity documents, if applicable

If you are operating your real estate investment business through a legal entity, such as an LLC, the transactional lender may request copies of your entity's formation documents. This helps to confirm the legitimacy of your business and your authority to enter into the contracts.

While transactional lenders are less concerned with your personal financial history, they still need to ensure the entity contracting for the property is valid. Have your articles of organization or incorporation ready, along with any operating agreements.

What transactional lenders generally do not need

Unlike hard money or traditional lenders, transactional lenders typically do not require extensive personal financial disclosures from you. They are not interested in your personal credit score, tax returns, or a detailed appraisal of the property's long-term value.

Their focus is on the rapid, back-to-back nature of the transaction and the strength of the end buyer. This means less paperwork for you concerning your own finances, but more emphasis on the integrity of the deal itself.

The importance of timing and completeness

Speed is often critical in wholesale deals, and transactional lenders operate with this in mind. Providing all required documents promptly and completely can prevent delays and ensure your deal closes on schedule.

Any missing or incomplete documentation can slow down the funding process. Treat your document submission like a checklist, making sure every item is accurate and delivered to avoid unnecessary headaches at closing.

Questions people ask

Do I need an appraisal for transactional funding?

No, transactional lenders typically do not require an appraisal since they are only concerned with a quick, simultaneous closing and the end buyer's ability to purchase the property.

Will the transactional lender check my credit?

Generally, no. Transactional lenders focus on the strength of the deal and the end buyer's funds, not your personal credit score or financial history.

How long does it take to get transactional funding approved?

Approval for transactional funding can be very quick, often within 24-48 hours, especially if all your documents are in order and the end buyer's proof of funds is solid.

Can I use transactional funding for a flip?

Transactional funding is designed for double closings where you immediately sell to an end buyer. It is not suitable for a flip where you intend to hold and renovate the property over time. You would need hard money or private money for that type of project.