There are many situations when you want to invest in real estate but it can be difficult to acquire the funds you need. That can end up making the process significantly harder, which is why you want to narrow down the best options to help you invest and push the boundaries in a unique and empowering manner.
What is Transactional Funding?
At its core, Transactional Funding is a short-term loan that makes it easy for an investor or a wholesaler to acquire a property. This is great because it allows them to not use their funds, which can be very hard to do in a situation like this. What happens is transactional funding lenders are offering 100% of the financing, but the borrower has to prove there is an end buyer that purchases the property.
How fast do you need to repay the loan?
As we mentioned earlier, this is a very short-term loan. You will have the loan period just for 24 hours, but some lenders will allow 2-5 days. Simply put, this comes in handy if you don’t have the funds right now, but you will have them shortly, and that will help you buy the property.
How does Transactional Funding work?
The investor finds a property and the property seller accepts the contract to sell to the investor. The investor finds an end buyer for the property, signs with them, and then goes to the lender to receive the funds they need. Once they buy the property, they sell it to their buyer, which means they repay the loan and keep the profit.
What are the benefits of Transactional Funding?
Transactional Funding is great because you don’t need personal qualifying, and you also have 100% loan financing. The financing process is also very fast, and you will have very low fees and costs as well, which is extremely helpful and convenient.
Are there any challenges related to Transactional Funding?
While Transactional Funding is secure, there are some challenges. As we mentioned earlier, the repayment period is very strict, sometimes it’s a day or two at most. You also have to inform the lenders of the end buyer that they are funding a fast flip. And yes, you need to have an end buyer, you can’t buy for yourself.
Conclusion
Overall, Transactional Funding is a great idea and it can bring in front exceptional results. It’s a great way to generate wealth, and the return on investment you can get is pretty impressive. You will certainly find it exceptional, unique, and different, not to mention versatile. This is a great way to generate money via real estate, so you should give it a try!