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Why Transactional Funding Commercial Real Estate Isn’t Just for Wholesalers
Most investors hear “transactional funding” and think of double closings on small single-family deals. But seasoned investors use the same strategy in commercial acquisitions, multifamily syndications, and large creative finance deals.
In markets like Miami, Atlanta, and Dallas, transactional lenders are helping syndicators temporarily fund multi-million-dollar purchases before rolling them into long-term financing or syndication structures.
As Grant Cardone (a major multifamily investor) likes to say: “Control the deal first, then bring in the capital.” Transactional funding helps do exactly that.
What Is Transactional Funding Commercial Real Estate Deals?
It’s the same A-to-B-to-C model — but on a bigger scale:
- A-to-B Closing: Transactional lender provides temporary capital to acquire the property.
- B-to-C Closing: Syndication, JV investors, or institutional financing replaces the short-term funds.
- Timing: Hours to days (vs. months for bridge loans).
Real-Life Example: Atlanta Multifamily Deal
- Property: 24-unit apartment building, $3.5M purchase price
- Investor’s Issue: Needed to secure the property fast before raising full equity.
- Solution: Transactional lender funded $3.5M for the A-to-B closing.
- B-to-C: Within 48 hours, the investor’s syndication capital + bank financing took over.
- Result: Investor secured control of the asset, avoided losing it to another buyer, and later raised $1M from LPs.
Without transactional funding, this deal would’ve been lost to a competing cash buyer.
Why Transactional Funding Commercial Real Estate Works in Multifamily & Commercial
- Control First, Raise Capital Later – Lock in deals while syndication capital is still coming together.
- Bridge to Institutional Financing – Use it while waiting on agency debt, SBA loans, or bank approvals.
- Keep Syndications Clean – Investors see you closed on the deal first, which builds confidence.
- Protects Spreads in JV Deals – If you’re reselling to another group, keeps profits private.
Transactional Funding Commercial Real Estate: Risks & Challenges (Where We Help)
- High Stakes – $2M+ transactional loans carry more pressure than $200k wholesale deals.
- Timing Risk – If syndication capital or bank financing is delayed, you’re exposed.
- Fewer Lenders – Many transactional lenders won’t touch commercial deals.
Our Solution: We specialize in providing transactional capital for larger deals — including multifamily and commercial syndications — with add-ons for EMDs, gap equity, and proof of funds.
Best Practices for Using Transactional Funding in Syndications
- Always line up committed equity partners before funding day.
- Use transactional funding only as a short-term bridge, not long-term capital.
- Have backup lenders (bank + private) to refinance quickly.
Partner with experienced title companies that understand creative closings.
FAQs
Can transactional funding be used on multifamily or commercial properties?
Yes — transactional funding can cover multi-million-dollar closings before equity or institutional capital is ready.
How does this differ from a bridge loan?
Bridge loans last months or years. Transactional loans are short-term (hours/days).
What’s the risk if syndication capital is delayed?
You may need to refinance with a bridge or hard money loan if B-to-C funds don’t arrive in time.
Do you provide transactional funding for larger projects?
Yes — we fund both residential and commercial deals nationwide.
Can gap funding be combined with transactional funding commercial real estate?
Yes — gap loans can cover down payments, EMDs, or carry costs alongside transactional funding.
