A real estate deal can be ready to close before the capital needed to complete it is in place. Transactional funding gives investors a way to bridge that gap when a property purchase and resale are structured to happen around the same closing period. iFundwise provides short-term capital for the purchase side of a same-day resale, with its process built around the transaction, its documents, timing, and closing team.
This guide explains how iFundwise transactional funding works, what the team looks for, and what investors can expect from deal submission through closing.
What Is Transactional Funding?
Transactional funding is short-term capital used to fund the purchase side of a real estate transaction when the investor has a resale lined up. The structure is commonly associated with back-to-back transactions, where an investor purchases a property and then resells it to an end buyer.
The key is that the transaction already has a defined structure. Investors need the relevant contracts and a closing process that can support the deal.
iFundwise describes its transactional funding as capital for the purchase side of a same-day resale without requiring the investor to tie up their own cash. The focus is on the transaction itself rather than a long-term credit application.
Transactional funding is one of several funding options iFundwise offers. Its other options include EMD funding, double-close funding, and Stack Method funding, each designed for a different transaction structure.
How iFundwise Transactional Funding Works
The iFundwise process follows four main stages. Each one helps establish whether the deal is structured correctly and ready to move toward closing.
1. Submit the Deal
The process starts with the deal itself. Investors provide the funding type, property information, capital needed, and relevant deal details. Documents can be submitted as they become available.
For transactional funding specifically, iFundwise lists three important requirements:
- Both contracts must be executed.
- The title company must support the transaction structure.
- The end buyer must be verifiable.
2. Receive a Deal Review
Once the deal is submitted, iFundwise reviews the structure and the information needed to move forward. The review considers factors such as the contracts, timing, title coordination, required documents, and the path for the capital to return from the transaction.
The transactional funding page lists a review time of under 30 minutes. However, iFundwise also notes that it generally asks for 48 hours' notice, although some transactions can move faster when the documents and closing team are ready.
This distinction matters for investors working with time-sensitive deals. A fast review does not eliminate the need to have the transaction properly prepared.
3. Complete the Contracts and Fees
After the structure is approved, iFundwise coordinates the required agreements and next steps with the appropriate parties.
The funding structure varies depending on the transaction. For transactional funding, iFundwise currently lists pricing starting from 1.5%. The exact terms should be confirmed for the specific deal rather than assumed from a general industry range.
This stage is also where closing coordination becomes important. The title company needs to be able to work with the transaction structure and coordinate the required closing details with iFundwise before funds are sent.
4. Fund the Closing
Once the required conditions are met, iFundwise sends the capital needed for the transaction. The timing depends on the deal, documents, and closing coordination.
For investors, this final stage brings the funding process together with the closing process. The goal is to have the capital and transaction requirements aligned so the deal can proceed as structured.
What iFundwise Looks For in a Transaction
Transactional funding depends on more than simply requesting capital. The underlying deal needs to be sufficiently prepared for the funding structure to work.
For transactional funding, iFundwise specifically highlights:
- Executed contracts for both sides of the transaction
- A title company that supports the structure
- A verifiable end buyer
The double-close funding option has additional requirements, including both legs aligning on the closing day and confirmation of the end buyer's funds before funding.
This makes the transaction structure central to the review. Investors should have the deal details, contracts, title coordination, and buyer information organized before submitting a funding request.
Transactional Funding Across All 50 States
For real estate investors operating in different markets, geographic availability can also affect the usefulness of a funding partner. iFundwise lists transactional funding coverage across all 50 states.
That nationwide coverage allows the service to be positioned for real estate investors pursuing transactions across the U.S., rather than being limited to a single local market.
The same transaction-focused approach also extends across iFundwise's other funding options. EMD funding is designed for earnest money deposits, while Double Close Funding supports same-day A-B and B-C closings. Stack Method Funding is designed around seller-carryback and DSCR structures where the down payment needs to bridge the first transaction.
Tools That Help Investors Prepare a Deal
iFundwise also provides resources that can help investors prepare before submitting a transaction. These include a proof of funds option, a Stack Calculator, funding process information, and an overview of the available funding types.
The proof of funds resource is intended for the front end of a double close, while the Stack Calculator helps investors model seller-carryback and DSCR structures before submission. These resources fit into the broader transaction-focused approach by helping investors understand the structure before moving forward.
Why the Transaction Structure Matters
Transactional funding works best when the underlying deal has a clear path to closing. That is why iFundwise's process places emphasis on contracts, timing, title coordination, the end buyer, and the capital's return path.
The approach also differs from a traditional long-term credit application. iFundwise states that it does not run a credit check and instead evaluates funding around the transaction, documents, closing process, and capital's path back out of the deal.
For investors, this means preparing the deal itself is an important part of the funding process. Having the right contracts and closing parties in place can make it easier to determine whether the transaction fits the funding structure.
Final Thoughts
Transactional funding can give real estate investors a way to approach a same-day resale without tying up their own cash for the purchase side. With iFundwise, the process centers on the deal structure, executed contracts, title coordination, the end buyer, and the requirements needed before capital is sent.
For investors considering transactional funding, understanding those requirements before submitting a deal can make the process more straightforward. If you have a transaction ready to review, submit your deal to iFundwise and find out what is needed to move it toward closing.
