Transactional Funding

Transactional Funding Helps when an investor is buying and selling real estate property that is distressed or the home owner has a reason they need to get out of the home fast.

Suppose you have a person who is behind on their mortgage and can not get caught up. You reach an agreement with the bank to buy the home for less than the mortgage is worth. Next you find a buyer who has funds ready to go and it able to buy the distressed property from you.

Well how are you going to buy the house in the first place to sell it to the end buyer? Easy...

Transactioanl funding, that's how!

You see transactional funding is just a 1 day bridge loan where a bank gives you a loan for one day. You use this money to buy the house from the distressed home owner and then you sell it to the end user.

In order to use transactaional funding you must have the end buyer already set up and ready to buy.

This is called buying a short sale with a double or Simultaneus close.

Short sale investing is one of the most common ways of making a profit. Simultaneous closings are back to back deals where you purchase a prime piece of real estate property that you know would fetch an excellent price in the market then sell it immediately to a waiting buyer.

Simultaneous closings allow you to earn without having to shell out your own money, since the property you purchased is immediately paid for by the funds from your buyer. This transaction, also called a quick flip, is one of the most profitable in the industry. Dry closings are perfect for the average Joe, since he will not have to put out millions of dollars in capital.

New requirements from the government have made simultaneous closings, quick flips, and dry closings more difficult. Under the new guidelines, these transactions are not illegal but are undergoing much more scrutiny than it has faced in the past. Many title companies today no longer want to undertake the hassle of state and federal assessments and investigations. Here is where transactional funding can help you.

Transactional funding enables investors to use a type of loan called the bridge loan, that allows you to undertake the simultaneous closings safely and with the backing of money provided by the loan. You are protected from scrutinizing federal and state agents since you are no longer conducting dry transactions or deals where money is transferred from the buyer to you, and from you to the seller. With transactional funding and the bridge loan, you are conducting valid closings that give you the opportunity to make money out of simultaneous closings.

With transactional funding programs, you make use of the funds of the transactional funding company. You may use the transactional funding company's name or your own company title. There are fees for these types of loans and services, but since you do not actually shell out any money, the benefits offset the fees in the end.

If you know a buyer who is willing to purchase a specific type of property which you happen to know and have control of, go on and make the deal through the use of transactional funding.