Transactional Funding in Galveston

Because the property that looks like the widest spread on paper is often the one with the most rehab friction. Galveston's downtown and Strand/Mechanic historic district carries Landmark Commission review on rehabilitation, restoration and demolition, and a rehab budget that crosses 50% of a property's market value pulls the whole job under new-construction flood standards, finished floor at base flood elevation plus 18 inches in AE zones, lowest horizontal structural member 18 inches above BFE in VE zones. Distressed and estate inventory on the island tends to concentrate in exactly these older, historic neighborhoods. That's a reasonable inference from the sourced rules, not a published market statistic, so verify Landmark Commission scope and the 50% test against the specific parcel before you price the assignment fee or set a B-to-C date. If you end up rehabbing the property yourself instead of assigning it, see our Galveston fix and flip program.

District 6 alone holds 51.9% of the island's active unregistered short-term rental supply. As of October 1, 2025, the city's own council-district breakdown of active STR properties shows District 6 at 51.9%, District 2 at 17.8%, District 3 and District 5 each at 11.2%, District 4 at 4.2% and District 1 at 3.7%. If you're wholesaling STR-zoned or STR-adjacent inventory on the island, more than half of the realistic buyer pool for a fast assignment is chasing deals concentrated in a single council district, which narrows both the comp set and the pool of cash buyers likely to move on a short fuse. Know which district a property sits in before you set the assignment fee; a District 6 deal has a deeper, faster buyer pool than one sitting alone in District 1.

No license, but two separate disclosure statutes apply, not one. Texas Occupations Code section 1101.0045 lets you acquire an option or an interest in a contract to purchase real property and then sell the option or assign the contract without a license, as long as you don't use it to broker and you disclose the nature of your equitable interest in writing to any seller or potential buyer. Miss that written disclosure and subsection (b) treats what you did as engaging in real estate brokerage, which is brokering without a license under section 1101.351. Separately, Property Code section 5.0205 requires its own written notice before you enter into the contract to sell an option or assign a purchase contract: to the potential buyer, that you are assigning an interest and do not hold legal title, and to the property owner, that you intend to assign. Both are statewide rules rather than Galveston County ones, so they read the same on every contract you write here. We're a lender, not your counsel, so have a Texas real estate attorney review your contract and disclosure language against both statutes.

Yes, and it is worth checking before you sign the B-to-C contract, not after. Galveston County is TWIA's single largest exposure in the state, and roughly three out of four county homes carry their wind coverage through the state wind pool. TWIA eligibility requires the property be maintained in an insurable condition, and any structure built before January 1, 1988 that has since had a re-roof or other alteration needs to comply with windstorm building codes to keep that eligibility. A property bought distressed and not yet brought current on its windstorm certification can leave your end buyer unable to bind coverage on schedule. Confirm the windstorm certification trail before you commit to a same-day second leg.

No. We fund up to 100% of the purchase price on the A-to-B leg. That is the point of the program: your capital is not what closes the first leg, the end buyer's money is what closes the second. It is a simultaneous close, measured in days, not weeks, and it only works when the B-to-C is genuinely ready to fund. On the island, the thing most likely to move that date is the end buyer's rehab plan running through Landmark Commission review, so line that up before you set the closing. Subject to underwriting.

A flat fee, not a rate. The money is outstanding for days, not weeks, so pricing is a flat fee on the transaction rather than an interest calculation you amortize. There is no appraisal fee in it either, because we do not order one. Put that fee into the assignment spread before you agree a number with your end buyer, alongside both sets of closing costs. On a Galveston County deal, also price in the possibility that a windstorm certification gap on the property delays your end buyer's ability to bind coverage on schedule. Subject to underwriting.

Yes. There is no credit check and no appraisal on transactional funding. We are funding a leg that exists for hours, secured by a transaction that is already contracted, so there is nothing to underwrite about your income and no property valuation to order. What we do need is a real, funded B-to-C on the other side. Bring the executed contracts and the end buyer's proof of funds, and the title company handles the rest. Subject to underwriting.