Transactional Funding in Tyler

Yes, if you stay inside its safe harbor. That statute 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 contract to engage in real estate brokerage, and you disclose the nature of your equitable interest in writing. Since SB 1577 took effect on January 1, 2024, that written disclosure has to go to both sides of the deal, the seller and any potential buyer, not just the buyer as under the original 2017 version. It's the rule you're working under on every Smith County contract, from a Tyler bungalow to a Winona lot. 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 disclosure language before you use them.

We fund the double close. Section 1101.0045 covers assignments: you sell the option or assign the contract, with the equitable-interest disclosure in writing to seller and buyer. A double close is a different structure, two separate purchase-and-sale transactions, A to B and then B to C, used when a contract is non-assignable or when the wholesaler would rather the end buyer not see the A-to-B price. Our transactional funding covers the first leg and is repaid out of the simultaneous resale. No Texas statute prohibiting double closings was located, but which structure fits a given contract is a legal question for your attorney, not a lending one.

Because the East Texas Oilfield reaches into southeastern Smith County, and Texas law makes the mineral estate dominant over the surface. Where a prior owner severed and kept the minerals, that reservation stays in the chain of title, and it can surface as a Schedule B exception on the title commitment late enough to complicate a same-day double close if nobody catches it early. Texas has a fix for it: a Minerals and Surface Damage Endorsement, form T-19.2, costs $50 on an owner's policy and nothing on a loan policy under the Texas Department of Insurance's promulgated Rate Rule R-29.1. There's no sourced figure for how many Smith County parcels actually carry a severed mineral estate, so read the title commitment's mineral exception on every Tyler-area contract rather than assuming it either way.

Texas forecloses without going to court, and the sales happen on one fixed day a month at the county courthouse. Under Texas Property Code section 51.002, sales are held on the first Tuesday of each month between 10 a.m. and 4 p.m., moving to the first Wednesday when that Tuesday falls on January 1 or July 4, at the courthouse of the county where the property sits, unless the commissioners court has designated another nearby public location. Notice has to be posted, filed with the county, and mailed certified at least 21 days before the sale. That 21-day window is the lead time to line up an end buyer and have transactional funding in place against a date that doesn't move. Smith County's exact designated sale location has not been confirmed from a county primary source, so verify it with the county before you plan to bid.

You pay two owner's policies, but neither price is negotiable and neither is a shopping decision. Texas title insurance rates are promulgated by the Texas Department of Insurance under Insurance Code section 2703.151, so the premium on a given policy amount is the same at every title company in the state, in Smith County or anywhere else. The Commissioner cut those rates 6.2% effective March 1, 2026. On the current schedule TDI's own worked example puts a $268,500 policy at $1,612. Texas also has no real estate transfer tax, and the constitution bars the Legislature from enacting one, so a same-day second closing triggers no state transfer levy. Since price is fixed, shop title on service, on whether the office will run a double close in a day, and on whether they'll write the mineral endorsement discussed above.

No. Transactional funding covers up to 100% of the purchase on the first leg. It is also repaid out of the simultaneous resale, so the money is out for days rather than weeks, and the pricing is a flat fee, not a rate you carry. What you do need is a real end buyer with funds and a Smith County title company willing to run both closings the same day. Subject to underwriting.

Yes, and that paperwork is the gate, not your credit file. There is no credit check and no appraisal on this product, so a first-time wholesaler is not underwritten differently from a repeat one. The gate is the paperwork, not your file: Texas Occupations Code section 1101.0045 has required written disclosure of your equitable interest to both the seller and the buyer since January 1, 2024, and both legs have to be able to close on the same day. We are a lender, not your counsel, so have a Texas real estate attorney review the contract. Subject to underwriting.