Transactional Funding in Texas

Not if you follow Texas Occupations Code section 1101.0045. That section 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, on two conditions: you don't use the option or contract to engage in real estate brokerage, and you disclose the nature of your equitable interest in writing. Miss the written disclosure and subsection (b) treats what you did as engaging in real estate brokerage, which is to say brokering without a license. That's not a paperwork technicality, it's the whole conditional. Texas has a second disclosure statute that older templates miss: 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, telling the potential buyer that you are assigning an interest and do not hold legal title, and telling the property owner that you intend to assign. It is a separate duty from the 1101.0045 disclosure, not the same one restated. We're a lender, not your counsel, so have a Texas real estate attorney review your contract and your disclosure language before you use it.

Yes. Since January 1, 2024 the written notice runs to the seller too. Section 1101.0045 was added by SB 2212 in 2017 and originally required the equitable-interest disclosure to the potential buyer. SB 1577, passed by the 88th Legislature in 2023, amended it effective January 1, 2024, and the section as it now reads requires the written disclosure to any seller or potential buyer. So a Texas assignment today is disclosed on both sides of the deal. If your contract packet still uses a pre-2024 template that only notices the end buyer, that's worth a call to your attorney this week rather than the week of a closing.

We fund the double close. Section 1101.0045 is written around assignments: you sell the option or assign the contract, with the equitable-interest disclosure in writing. A double close is a different structure. It's two separate transactions with two deeds, A to B and then B to C, which is why wholesalers use it when a contract is non-assignable or when they'd rather their spread not show up on the end buyer's settlement statement. Because it isn't an assignment, it isn't the same disclosure event, and we did not find a Texas statute prohibiting double closings. Our transactional funding covers the first leg and is repaid out of the simultaneous resale. Which structure fits your contract is a legal question for your attorney, not a lending one.

Texas forecloses without a court, and the sales happen on one day a month. Under Property Code section 51.002, a trustee's sale is held between 10 a.m. and 4 p.m. on the first Tuesday of the month at the courthouse of the county where the property sits, or at another nearby public spot the commissioners court has designated. If the first Tuesday lands on January 1 or July 4, it moves to the first Wednesday. Notice of sale goes out at least 21 days ahead by courthouse posting, filing with the county clerk, and certified mail to each debtor. A 20-day cure notice comes first only where the property is the debtor's residence, so on non-owner-occupied investment property the practical floor is closer to 21 days. For a wholesaler that means distressed supply lands in a predictable monthly batch, and 21 days is the lead time you get to line up an end buyer and confirm funding against a date that does not move.

Not on the premium. Texas fixes title rates by order, not by company. Insurance Code section 2703.151 requires the Insurance Commissioner to fix and promulgate title insurance premium rates, so the basic premium on a given policy amount is identical at every title company in the state. Commissioner's Order No. 2025-9697 cut those basic rates 6.2%, effective March 1, 2026. The schedule works by formula above $100,000; the department's own worked example puts a $268,500 policy at $1,612. What that means on a back-to-back deal is simple. Price is off the table, so shop title purely on service, on endorsements, and on whether the company will run your structure. Confirm that before you go under contract, not the week of your close.

More than the headline market numbers suggest. Two Texas facts set the ceiling on what your B-to-C buyer can pay. First, margins are thin: in Q1 2026 flips were 9.9% of all Texas sales against 8.0% nationally, but gross ROI ran 5.6% against 25.4% nationally on 6,367 flips, and that gross figure is resale against purchase only, before rehab, carry, and financing. Texas flips get won on basis, not on appreciation, and your buyer knows it. Second, comps are harder here. Texas is a non-disclosure state, so sale prices aren't recorded on deeds or compelled to the appraisal district, which puts more weight on appraisal and BPO work and makes ARV support on an off-market deal genuinely harder to build. On a double close that risk sits with you, because our funding is repaid from the simultaneous resale. Get your end buyer's proof of funds and their lender's timeline in hand before you commit to a closing date.

Not for the A-to-B leg. Transactional funding covers up to 100% of the purchase price on the A-to-B side so your B-to-C can fund, and it prices as a flat fee rather than a rate. You still need your closing costs and the Texas title work lined up. Since the title premium here is fixed by the state, pick the company on whether it will actually handle a same-day double close, not on price. Subject to underwriting.

Days, not weeks. Both legs are meant to run as a simultaneous close, so the money is in the deal for the length of the closing rather than for a hold period. That is why the program carries no credit check and no appraisal. If your end buyer is not funded and papered, you do not have a transactional deal yet, and a Texas first-Tuesday auction buy is not one either. Subject to underwriting.