Best Transactional Funding Expands

Due to popular demand, we’ve expanded the number of states where we provide transactional funding. We now can service real estate transactional funding in Florida, Georgia, Alabama, Tennessee, North Carolina, South Carolina, Virginia and Texas and shortly in an additional 20 states!  Make sure to follow us on social media for any future expansion as well.

In case you are new to transactional funding in real estate investing, here are the basics. Real estate investors place a property under contract and then wholesale that same property to an end buyer.  Both transactions need to close the same day with the end-buyer having cash to close. This is referred to as a same-day double closing.

Transactional funding is very often used by these investors when they don’t have enough money to purchase outright the A – B leg (the first part) of a double closing. So in order not to have to provide the money for the first leg, the real estate investor must do a double closing and use same day transactional funding which is what we provide.  Both closings must take place the SAME DAY.

The process of doing these wholesale deals, with no money necessary, can be a simple process. First the investor finds a motivated seller (someone very eager to sell) and gets the property under contract.  He then advertises for a buyer by using his buyers list and conventional advertising techniques.

Once he finds a cash buyer and gets a signed contract from this buyer to purchase the property, he then moves to the closing.  If the end-buyer is a cash buyer, the investor can use transactional funding (same-day money) to complete the first leg (A – B) of the transaction in the morning of the day of closing and then the end-buyer’s cash will complete the second leg (B – C) of the transaction later in the day.

If his buyer has to get a conventional bank loan, the investor will have to actually purchase the property using hard money if he has none of his own and wait for his buyer to complete the bank financing before he can get his profit.  This is typically called conventional financing and this is not something we
provide.  An investor looking for hard money should do serious comparison shopping well before he or she actually needs the money.

Because of this high cost of hard money, investors should be looking to use private money and transactional funding whenever possible.  A transactional funder does not have to use a preferred closing agent like traditional lending sources and a transactional funder should be able to do the A – B closing at one closing agent and the B – C at another closing agent.

Typically transactional funders will provide 100% of the purchase price, be able to give an approval in 24 – 48 hours of the closing, charge no processing fees other than a wire fee, have a reasonable minimal fee and have been established in the transactional funding market.  We provide all of the above and we look forward to working with you.

To your limitless success,

Dave Dinkel