Echo Funding in Los Angeles, CA | Swift Deal Funding
Echo Funding in Los Angeles, CA
Echo funding (transactional down-payment funding) supplies the cash an end buyer needs to close, repaid directly from the seller-side proceeds — in a wholesale deal, your assignment fee. It keeps a deal alive when the buyer is short on the down payment but the spread holds. LA Echo deals often run $80,000–$300,000 funded, with capacity to $10,000,000 per transaction, at a flat 2.5% fee and no upfront cost.
Los Angeles is a high-priced, deep market with a median around $1,000,000. End buyers — flippers and buy-and-hold landlords — stay active on multifamily in Highland Park and Boyle Heights and on entry-level single-family in Sylmar and Watts. Because prices are high, the down payments are large, which is exactly where Echo earns its keep, and California’s dry-funding model frames how the repayment clears.
How Echo closes in Los Angeles (dry-funding, record-first)
California is a dry-funding, escrow state. The independent LA escrow company cannot pay out at signing — disbursement follows recording with the LA County Recorder. With Echo:
- We wire the down-payment funds into escrow before closing.
- The deal signs; the deed records with LA County.
- Once recording confirms, the escrow company disburses.
- Your assignment fee repays our funded amount plus the flat 2.5% in that same disbursement.
Repayment is tied to recording, not signing, so confirm your escrow company’s recording cutoff to keep the disbursement same-day rather than rolling to the next morning. SoCal commonly runs these through independent escrow companies.
Pricing
Flat 2.5% of the funded amount, collected on the settlement statement at disbursement. No application, origination, or upfront fees.
What you’ll need
- Executed purchase contract (typically the CAR Residential Purchase Agreement)
- Executed assignment contract showing your assignment fee
- Assignment fee ≥ funded down payment + 2.5% fee
- An LA escrow company prepared to disburse seller proceeds with the Echo repayment included
No credit check, income verification, or tax returns; California has no wholesaler-licensing statute, so disclose your assignment or equitable interest.
A typical Los Angeles Echo scenario
You have a Highland Park duplex under contract and assign it to an end buyer at an $820,000 purchase price with a $90,000 assignment fee. The buyer is $120,000 short on the down payment. We wire $120,000 into your LA escrow company. The deal signs, the deed records with LA County, and at disbursement escrow repays our $120,000 plus the $3,000 fee from your assignment fee. You net about $87,000, and the buyer closed without the full down payment in hand. Because California disburses post-recording, an early file keeps it same-day.
Apply
Submit your purchase contract and assignment contract online. We confirm the assignment fee covers the funded amount before approval. Standard turnaround is ~48 hours.
Frequently Asked Questions
How does Echo funding work with California's record-first escrow rule in Los Angeles? +
Echo funds your end buyer's down payment and is repaid from seller-side proceeds — your assignment fee. California is a dry-funding, escrow state, so the independent LA escrow company disburses only after the LA County Recorder confirms the deed records. We wire the down payment into escrow before closing; once the deal signs and records, escrow releases seller proceeds and repays our funded amount plus the flat 2.5% from your assignment fee. Confirm the recording cutoff with your escrow company so disbursement clears the same business day.
Does my LA assignment fee need to cover the full Echo amount? +
Yes. Your assignment fee must be at least the funded down payment plus our flat 2.5%, because repayment comes from those seller-side proceeds at disbursement. LA's median near $1,000,000 means down payments and assignment fees both run large — a $200,000 down payment on a Boyle Heights fourplex still leaves room when your fee is sized right. We check the assignment contract closely before approval. As long as the fee covers the funded amount plus 2.5%, the Echo repayment clears once LA County recording confirms.
Do I need a license to use Echo funding in Los Angeles? +
No. California has no wholesaler-licensing statute, so you can control and assign a contract without a real estate license — just disclose your assignment or equitable interest. You'll need an executed CAR purchase contract, an assignment contract showing your fee, and an LA escrow company ready to disburse with the Echo repayment on the statement. We don't check credit, income, or tax returns. Because California disburses after recording rather than at signing, schedule the close so the LA County recording clears within the business day.
Apply for Echo Funding in Los Angeles, CA
Submit your application online — same-day decisions for complete files before 2 PM Eastern.