Every investor’s worst nightmare? A deal collapsing at the last minute because someone saw too much.
A land investor in Florida locked up a property for $44,000 and found a buyer through a real estate agent at $169,000. The numbers were solid—$125,000 profit on the table.
But big spreads come with big risks. Here’s how transactional funding ensured a smooth closing and protected the deal.
The county allowed assignments and double closes using end-buyer funds. But here’s the problem—too much visibility kills deals. If the seller or buyer saw the spread, someone might back out, renegotiate, or complicate the process.
If the seller or buyer sees the profit, the deal can blow up.
The seller might feel they sold too low and refuse to close.
The buyer might hesitate, thinking they overpaid.
The real estate agent might push for renegotiation.
The title company could flag the deal as risky.
The more eyes on the profit margin, the higher the risk of interference.
Rather than take a chance, the investor used transactional funding to create a clean, professional, two-step closing process.
The investor secured short-term capital to purchase the property for $44,000.
This kept the transaction simple and separate—the seller had no clue what the investor planned to do next.
No last-minute negotiations, no hesitation.
With ownership secured, the investor immediately closed the second sale at $169,000.
Two separate transactions, two separate HUD-1/ALTA statements.
The buyer saw a legitimate seller who had clear ownership.
No interference, no deal-killing visibility.
Result? A clean, effortless $125,000 profit.
The investor controlled the outcome by ensuring no one outside the transaction had the ability to disrupt it.
It’s not just about finding a good deal—it’s about structuring it the right way.
Protect your profits – If the spread is too large, keep the transactions separate.
Eliminate unnecessary risk – Transparency is great, but only when it doesn’t kill the deal.
Think like a professional – The best investors don’t leave anything to chance.
If you’re flipping land, houses, or any high-margin deal, transactional funding isn’t an expense—it’s an insurance policy on your profits.