Real estate deals can move quickly, and having the right capital at the right time can make a difference. iFundwise provides short-term funding for real estate investors working with earnest money deposits, double closings, transactional funding, and Stack Method deals.
This guide explains how iFundwise works, the funding options available, what investors need to prepare, and how these structures fit into real estate transactions.
What Is iFundwise and How Does It Work?
iFundwise provides transactional capital designed around specific real estate deals rather than traditional long-term property financing. Its funding options are intended for investors who need capital for a particular transaction and have a defined path for the funds to be repaid.
The process starts when an investor submits the deal details and relevant documents. iFundwise then reviews the transaction structure, timing, title information, contracts, and other requirements. Once the deal is approved and the required agreements and fees are completed, the funding is sent for the closing.
The process generally follows four steps:
- Submit the deal: Provide the funding type, property information, capital needed, and relevant deal details.
- Receive a review: The team reviews the structure, contracts, timing, title information, and required documents.
- Complete contracts and fees: Once the structure is approved, iFundwise coordinates the necessary agreements and closing steps.
- Get funded: When the requirements are met, capital is sent for the closing.
iFundwise states that deal reviews can be completed in under 30 minutes, although investors should still provide enough time for documentation and closing coordination.
Real Estate Funding Options Available Through iFundwise
Different real estate transactions require different types of capital. iFundwise offers four main funding options.
- Transactional funding provides short-term capital for the purchase side of a same-day resale. It can help investors complete the first transaction without tying up their own cash.
- EMD funding provides capital for earnest money deposits. iFundwise sends the funds directly to the title company or escrow agent identified in the contract, helping investors secure a property while preserving their available cash for other needs.
- Double close funding supports a same-day A-B and B-C closing. The investor first purchases the property from the original seller and then sells it to the end buyer. iFundwise provides capital for the purchase side when the transaction meets the requirements.
- Stack Method funding is designed for seller-carryback and DSCR structures. It can help bridge the down payment when the first-position financing does not cover the full amount required to complete the transaction.
How Transactional Funding Works in a Double Closing
A double closing involves two separate property transactions that take place back to back.
In the first transaction, the investor purchases the property from the original seller. This is the A-B transaction. In the second transaction, the investor sells the property to the end buyer, creating the B-C transaction.
Transactional funding can provide the capital needed for the A-B purchase. Once the B-C sale closes, the proceeds can be used to repay the funding.
The structure depends heavily on timing and documentation. iFundwise reviews the purchase and resale contracts, closing dates, property addresses, and other details to make sure the transactions align. The end buyer must also be verifiable, and the structure needs to provide a clear path for the funded amount to be repaid.
For an investor preparing a double close, having both contracts and the relevant closing information ready can help move the review forward.
What iFundwise Reviews Before Funding a Deal
Submitting a funding request involves more than stating how much capital is needed. The underlying transaction needs to support the requested funding structure.
For double closings, iFundwise looks at factors such as:
- Both contracts being executed
- The title company supporting the transaction structure
- A verifiable end buyer
- The timing and coordination of the two closings
- Whether the transaction provides a clear return path for the capital
EMD transactions have their own requirements. Investors need to provide details such as the purchase contract, property address, deposit amount, names on the contract, and information about whether the deposit is refundable.
Stack Method deals require coordination around the first-position financing and seller-carryback structure. The funding needs to fit within the overall transaction and closing requirements.
The focus is on understanding the deal structure before capital moves, rather than treating the request like a conventional long-term credit application.
Nationwide Real Estate Funding With iFundwise
Real estate investors can work across different markets, so access to a funding provider with broad geographic coverage can be useful.
iFundwise provides funding across all 50 states for its supported transaction structures. This gives investors a single funding option that can be used across different markets instead of requiring a separate funding partner for every location.
The nationwide approach can also support investors who expand their deal activity beyond their local market. Rather than making geographic availability the main focus, investors can concentrate on whether their specific transaction fits the funding structure.
Tools for Preparing a Real Estate Deal
iFundwise also provides tools that can help investors prepare for the funding process.
The Proof of Funds tool allows investors to request a statement for the front end of a double close. This can help demonstrate that the purchase side of the transaction has the required funding available.
The Stack Calculator helps investors model a seller-carryback and DSCR structure before submitting the deal. Investors can use it to understand how the different financing pieces fit together.
iFundwise also provides a funding process resource covering the review, coordination, and closing stages. Together, these tools can help investors understand the structure of a transaction before requesting funding.
Final Takeaway
Real estate deal funding can take different forms depending on what a transaction requires. An investor securing a property may need EMD funding, while a same-day resale may require double-close or transactional funding. A seller-carryback and DSCR structure may call for Stack Method funding instead.
iFundwise brings these funding options together around the structure of the transaction. With short-term capital, deal review, closing coordination, and nationwide availability, iFundwise gives real estate investors a way to approach funding based on the specific needs of their deals. Have a real estate deal that needs funding? Submit your deal to iFundwise and take the next step toward closing.
