How Transactional Funding Can Help You Scale Your Real Estate Business Faster

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In this episode of the Real Estate Pros Podcast, host Micah Johnson interviews Luca Beltrami, a key player in the transactional funding space. They discuss the mechanisms of transactional funding, its importance in the current market, and how Luca’s team has built a successful business model around it. The conversation also touches on the significance of education and community in real estate, as well as strategies for identifying ideal clients and scaling operations effectively.

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Luca Beltrami (00:00)
And essentially, really, we are actually taking care of those type of transactions nationwide. So we don’t really have a specific market that we’re going to be confined in. And the type of transactions that we’re doing are called transactional funding. So it’s going to be a business to where we are going to be funding the transaction for a very quick term and then sending our money back out so that all the investors are going to be able to scale a lot faster.

And you know close on more deals.

Micah Johnson (01:59)
Hey everyone. Welcome to the Real Estate Pros Podcast. I’m your host, Micah Johnson. And today I’m joined by Luca, who’s been making serious waves in the transactional funding space. Luca, glad to have you here,

Luca Beltrami (02:11)
Hello, hello. How are you doing? How is everybody? Good morning.

Micah Johnson (02:14)
Good morning, man. I’m doing well. I’m glad you’re here. I think our listeners are really going to take something away from how you’re approaching transactional lending and making sure people get deals done, especially in this market climate. So let’s dive in. So for people who may not know you yet, let’s dig into a little bit of your main focus and what markets you’re currently operating in.

Luca Beltrami (02:34)
Sure, absolutely. Thank you very much for asking.

And essentially, really, we are actually taking care of those type of transactions nationwide. So we don’t really have a specific market that we’re going to be confined in. And the type of transactions that we’re doing are called transactional funding. So it’s going to be a business to where we are going to be funding the transaction for a very quick term and then sending our money back out so that all the investors are going to be able to scale a lot faster.

And you know close on more deals.

Micah Johnson (03:05)
And who you’re for, so for someone that’s listening and may not know exactly what transactional funding is yet, explain it, break down what you mean by that term and how that process works.

Luca Beltrami (03:16)
Absolutely. So essentially

there are three ways that we would be able to help in those type of transactions. The first one is earnest money deposit. Then we’re going to be able to do double closes. And then something else that we’re doing is a seller carry back type of a transactional funding earnest money deposit. That is very, very easy. When you’re looking to buy a property, you’re going to need to put some money down to be able to purchase a property. Those type of money are going to be able to put by us, me and our partners. So you do not really need to essentially

put your capital into the specific transactions, we will be funding it on behalf of your transaction and uh so that you can focus on scaling up faster and getting more transactions done. That’s the earnest money deposit. That’s going to be a contract.

Then the other way that we’re going to be able to help is going to be a double close. Very easy. If you are a wholesaler, for example, you’re going to be looking to purchase a property for $100,000. You want to resell it to somebody else for $120,000, but you do not have those $100,000 to be able to close on the transaction. We will fund those $100,000. Our money are going to stay again on behalf of yourself, on behalf of your company. Those money are going to stay within the title company.

And then next day, same day, we’re going to be able to close with the end buyer that is coming in with $120,000. You just made yourself around $20,000. We will be getting back our $100,000 that we put in for the first set of the transaction, the A to B. And you will keep the profit that you have minus our fees. So you can essentially scale infinitely. The other one is going to be the seller carry back method, which very easy. Let’s call it that way.

when you’re looking to purchase a property you’re going to be able to have the main lender that is going to be providing you between 80 or 85 90 90 90 percent of the purchase price there is going to be a little bit of the leftover balance which is the 10 15 20 percent that the new buyer is going to have to come up with so instead of having to come up with those money yourself you are essentially going to ask the seller to carry back a little bit of the

Micah Johnson (05:15)
Hmm.

Luca Beltrami (05:26)
equity essentially that you that you would need to close on the transaction we will fund those leftover balance title companies going to understand the full transaction we you buy that property essentially without having to come up with any of your money and you can scale up as much as you want at that point because you don’t need any capital involved into those transactions that’s why it’s called transactional funding

Micah Johnson (06:38)
Man, that’s excellent. And with our changing market, especially for wholesalers, a lot of states are making it where you have to double close now. So y’all are really stepping up to the plate there. So you’ve been doing a great job with transactional funding. What’s been the key to making it work consistently?

Luca Beltrami (06:55)
The key to making it work

consistently is because we actually have, ⁓ it is not just me, I actually have two other partners, Jonathan and Travis. Between the three of us, have very, three specific skillset that we actually that that closes up the full type of transaction because I am taking care of the beginning of the transaction. Me and Jonathan, we restructure the transaction when need be. Then we also have when the transactions are

Submitted then we have Travis. He’s actually our director of director of operation and he’s taking care of all the back-end talking with title talking with the lender talking with the Borrowing talking with the end buyer essentially. He’s talking with everybody to be able to have then a smooth transaction so that me and Jonathan can still talking with other people and Explain the way that those transactions are also on top of that Jonathan is actually a production engineer engineer of production. in manufacturing

So he has the SOP down to the start. We all know exactly who’s needed to do the transaction, why, what time, when they actually received the information, how to build up the transaction. So everything is already all in there specifically organized. So little by little, step by step, we can close on as many transactions as anybody need.

Micah Johnson (08:12)
Man, that’s powerful. See, I’ve pretty much built an entire ecosystem to get someone from before transaction to close and even the folks in place to dot all the I’s and cross all the T’s.

Luca Beltrami (08:25)
Yes, sir.

That’s plan. That’s what we’re actually looking for because our motto is actually more than funding your deal concierge. So that’s why we want to focus on those specific key points to be able to essentially have no friction type in the transaction and provide the step by step for everybody to know exactly where we are and when we’re supposed to be closing and get all the money ready, lined up and close on as many transactions as needed.

Micah Johnson (08:52)
And that’s powerful because communication is key in one of those deals. Having done them myself, not being in the dark on any part relieves a lot of stress for you, you’re buying the property from, the whole nine yards. So that’s awesome. I’m glad you all are doing that. So another quick question, was there a moment for you and your team where things got real for y’all or something went sideways or time that you had to pivot fast?

Luca Beltrami (09:17)
We did have

maybe like at at the, at the ending of last year, we had one specific transaction that actually took a turn. it was not on our, let’s call it not our fault. We actually talked about it with the title company. There were some complication. all know how title company and lenders usually are. They are asking for one specific things, two minutes before closing, or they’re asking you for like specific things that you asked them, whatever a month ago.

So yes, that was the little bit of the transaction and we were all up on our seats, everything worked out well. We were able to close for the buyer. The seller was happy and ⁓

We all close on the transaction, that’s like going back to what I was saying before, those type of issues are not going to happen anymore now because we have specific ways to do the transaction now that we’re not going to have that issue anymore. Essentially, we want to scale on the business with you and for you so that we can improve even faster.

Micah Johnson (10:49)
Oh man, that’s awesome. You took my next question away, which is what did the experience teach you? And that’s no worries. Cause that’s the thing. If you don’t learn from them, then you really didn’t do much. And it may not be an issue or a mistake on your own part, just being involved in a transaction itself. So that’s, I like working with companies and hearing from folks that are proactive. I call it going on offense where you see something, Oh, I can head this off at the pass later. So kudos to you all for jumping on that. I like what you’re developing here.

Luca Beltrami (11:19)
Absolutely. Thank you. Thank you.

Micah Johnson (11:21)
Yeah, so looking ahead to this year, what are you most focused on solving or scaling next? What’s that big goal?

Luca Beltrami (11:28)
We have like three or four different that’s what we call them rocks Which is essentially something that is big enough to actually not be able to be completed very faster But not too big that is then going to be quote-unquote crashing you So we’re building up again improving improving improving What we’re looking for right now is essentially more people that understand the type of transactions that we are doing so that we can help more people in scaling

So yeah, those are essentially what we’re working on right now. We have some like two or three different things that we’re working on that we haven’t seen in the market yet. So that’s what we’re working on right now.

Micah Johnson (12:03)
It’s exciting, man. Y’all are

on the EOS system. That’s for sure. And you’re dropping rocks on me. It’s a, which is a really powerful way to function goals. And it could be worth a quick sidestep where if you’re running a business and haven’t heard of the EOS or rocks, what Luca just described is perfect how they work. I’ve used this system before where it’s big enough, but not too big. And then you set yourself milestones along the way to know that you’re achieving that rock. Is there.

Luca Beltrami (12:08)
you ⁓

Yeah, we’re doing them.

Micah Johnson (12:32)
Yeah, doing everything on purpose. Intentionality is a big word for me, and especially in real estate, because don’t waste moves. You know If you can keep yourself on track and having, whether that’s a good standard operating procedures, having good SOPs, having that knowing where you’re going to begin and where you’re going to end in the steps in the middle just makes everything, It’s more less friction is a good way to say it.

Luca Beltrami (12:40)
That’s good.

Absolutely.

For every question that has been asked more than once, we have an answer for that question so that the next time we have either a video that we’re going to be able to send the specific, what do you call it, the person that is asking the question, we’re going to be able to send them either video or answer very specifically or send them to our link to be able to be able to have the answer. So yeah, that’s what I was saying by know, SOPs, like that’s what we like to do essentially.

Micah Johnson (13:22)
That’s awesome. So for that, you mentioned that that first rock is trying to find find the people who your system is right for. Is there What’s a good fit look like? Have you all determined that?

Luca Beltrami (13:34)
Yeah, a good feed

is something that in the business I would call a whale. So it could be either a big time investor that is looking to scale up faster. And they have like, they have already done those type of, they’ve ever really done a lot of transaction in real estate, but they’ve always been tied up for the capital. That’s what we’re going to be able to help them with because right now, every time, like you were saying before, every time you need to close on a transaction, you need a little bit of money and you’re always going to be looking for other people’s money to be able to close on the

But what if the other people’s money is actually coming from the seller now? You’re not gonna need to look for like 300 people talk with 300 people Hope that they are going to understand the transaction. Hope that they’re gonna be ready to fund the transaction when need be That’s it You only need one person that person is gonna be from with you from the beginning because it’s technically the seller of the of the transaction They’re gonna know exactly how the transaction works They’re gonna be okay without the transaction and going to is going to be structured and like I said, you can

scale up as fast as possible. That’s as far as a buy and hold person. like you were asking before, like you were asking before, what is the next type of lead that you’re looking, not lead, but like person that you’re looking for is going to be a whale. So let’s call it a whale that is going to be, for example, a wholesaler. Wholesalers, like you were saying before, they’re going to start to need to have more different type of capital because there are specific laws and regulations that they’re not going to allow them to close on those transactions the way that they were doing them before.

That’s what we’re going to be able to provide. If you are a wholesaler that need $5,000 or like whatever that has like 10 transactions under their belt right now that they need to close on, we’re going to be able to take up on all those types of transaction, double close on them. They can focus on getting more leads. We can focus on providing the funds that you need to close on the transaction. Everybody, it’s a win-win for everybody.

Micah Johnson (16:09)
Yeah, yeah, really fill in that gap. Because like we talked about before, that need for capital, one, it’s always there in every investor’s world. And then as the rules and regulations change, it becomes more more important. So I’m going shift gears for a quick second. So for listeners who are earlier in their career and trying to level up, what’s made the biggest difference for you and your team when it comes to building relationships and growing your network?

Luca Beltrami (16:34)
We actually,

for somebody that is actually new or brand new or is looking to actually get into this type of business, we are actually building up a school community, which is a way for those new people or maybe not so new, but they wanna essentially get add another tool to their tool belt. ⁓ It’s essentially a way to join our community. They’re going to be able to learn their ropes from the beginning all the way until the end of how the transaction works.

And ⁓ yeah, essentially that’s what we’re working on. That’s another one of the big rock that we’re working on right now. ⁓ Building up the school community and get more people to understand the way that those transactions work so that we can all scale up together. Essentially, what we want to do is we don’t want to be the richest people around. We want to be able to share the wealth so that everybody’s going to be you know rising tides for everybody, essentially.

Micah Johnson (17:30)
Yeah, yeah, no, that’s good. And education is such a big part of real estate. You can get into things you don’t know what’s going on pretty quick. But once you, if you take that time to learn the ropes, and this is what I encourage all, especially beginners to do is find someone or something to learn from. So it’s not just shooting in the dark. So that’s awesome to start creating that communities that you can actually be ready to transact even before you have your first transaction, which I’m sure makes it simpler for y’all working with them.

Luca Beltrami (17:59)
And by the way, what’s best exactly like you were saying, like you’re essentially, you’re not going to be, let’s call it in the driver seat, but you’re like very next to it because by the time that you’re going to understand how to take care of a transaction, let’s call it, you connect with the con with a wholesaler in whatever that they are doing a lot of transactions. You introduced that wholesaler to us with your specific affiliate link. You’re going to be able to be in the transaction from the beginning all the way until the end. So you will see.

exactly who submitted the deal, how much was the submission, how much money they need. There is going to be connection and talks with the title company. There is going to be connection and talks with the lenders and everybody else. You’re going to be in the passenger seat to be able to see, learn and understand all those transactions without having to risk, of course, anything for you. But yes, that’s that’s the best way to teach somebody essentially.

Micah Johnson (18:52)
Man, that’s next

level transparency right there. How important has that been to you and your team to keep things that open to see?

Luca Beltrami (19:00)
That is exactly, that is actually one of our key points in our, in the business, like transparency, efficiency. You know, we have like those very specific innovation, transparency, efficiency. Those are like very key points that we have in our transactions. So in our business, and that’s exactly what we love to go for.

Micah Johnson (19:20)
Man, that’s awesome. So question here for you. If someone wanted to connect, collaborate, or learn more about what you’re doing, what’s the best way to reach out to your team?

Luca Beltrami (19:30)
There are actually that I can think of there are three ways. Those are the three main ways to do it. The first one, one of my partner is actually Travis on TikTok. His name is transactional Travis. So you just go there on TikTok transactional Travis. You will see and understand exactly what we’re talking about right now. Follow up with him.

That’s the first way the second way you can go on our website, which is wisecapitalsolutions.com That’s gonna bring you essentially to our website to where you’re going to be able to understand and Submit deals if you need to but in case you actually want to learn even more then at that point I would recommend you to go on school. It’s like SK OOL

It is a community, school community. Again, it’s called Wise Capital Solution. You can just essentially join there and you’ll be able to find everything that you need. I will be very reachable. And we can start to close on transactions together if you are either a borrower or an affiliate. Absolutely.

Micah Johnson (20:28)
And that school community is free right now to join?

Luca Beltrami (20:31)
Yes, yes,

right now it’s a free community.

Micah Johnson (20:34)
Excellent, excellent. All right, for those listening, we’ll make sure that the links to those are in the description on the podcast. Luca, man, I appreciate your time, your story and perspective. I think we need more folks out in the space doing it like you and your team are doing it, bringing that transparency and the processes to the transactional funding side of the deal so that more deals get closed. And for those of you tuning in, if you got value from this episode, please like this podcast episode, subscribe to our podcast.

We’ve got more conversations coming up with operators just like Luca who are out there in the industry building real businesses. Luca again, thanks for joining me. We’ll see y’all in the next episode.

Luca Beltrami (21:11)
Absolutely.

Thank you very much, Micah. I appreciate it. Have a good one.

Micah Johnson (21:16)
Thank you.

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How Transactional Funding Can Help You Scale Your Real Estate Business Faster

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