OfflineHello To All:
I wanted to clear up some confusion that seems to come through in peoples mindsets about transactional funding.
First, it is not a loan, it is deal funding, not deal financing. There is a huge difference.
In order for this type of deal funding to work, you must have a contract with the seller, called the A-B and a contract with the end buyer, called the B-C.
You must also have the closing agent provide a escrow receipt as proof of the end buyers funds being held for the deal.
You can use the funds for residential, commercial, short sales, REO's, HUD Deals, etc.
I talk to investors everyday about transactional funding and many think it's a loan and when I inform them it is not as such, they become very interested.
Just wanted to clear up a few things.
Transactional funding is a phase that will be hard to lose. For those that are considering transactional funding consider the funding versus a hard money lender.
Transactional funding usually lends for 1,2 or 7 days. They cost is often 3-5 points. That would be 3-5 points for just days of a loan.
Hard money lenders will lend often 90-150 days. The cost is 2-5 points with interest.
If you run into a situation where the seller you through you had under contract goes to the closing table, finds they do not like what they see and walks away. Now you are stuck with the first part of the double closing...you purchased. Would you rather have a few days to figure out what you are doing or have months to decide at the same cost?
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125