Transactional Funding
Transactional funding helps real estate investors close more short sale deals.
It’s really no secret the credit markets are tightening their belts and it has become much more difficult to get short sale funding for your real estate deals.
In the good old days of real estate investing there were many more real estate funding and financing options available making double closings and simultaneous closing much easier.
A real estate investor could close way more short sales because real estate financing was easier to find and the approval process was a not as difficult. This has made short sales deals more difficult to close but it does not mean it can not be done.
Transactional funding is a great way to close more short sale deals without double closings or using hard money.
Transactional funding allows back-to-back closings where your short sale deal turns into two separate and different transactions.
Here’ are the two ways transactional funding can work. The first way is when the homeowner is about to go into foreclosure and is selling their home to a real estate investor. The second part is when the pre-foreclosure real estate investor sells the home to an end buyer.
Sounds great right? Well where the problem comes in is when the real estate investor needs funds to to buy the house as a pre-foreclosure even when your end buyer has secured funds to buy the property from you.
Transactional funding is a great strategy to use when you as the real estate investor need funds to buy the property.
Lenders prefer this type of real estate financing because the banks are only lending the money for a short period of time.
For example, lets say you already have an end buyer who has an approved load to buy the property. There will be two different transactions that take place. The first is when you as the investor buys the property from the homeowner who is in pre-foreclosure. This first deal would be funded by the transactional funding company.
Once this deal closes you as the real estate investor when then immediately sell the property to your end buyer, make sense?
Transactional funding is a great real estate funding strategy for short sale and foreclosure investors when looking to funding their short sale business. Get More Information on Transactional Funding sources now!
My name is Hector Alvarez and I am managing member for Halo America a company that assists in homelessness prevention. We currently have buyers that are in the process of doing our program and are purchasing distressed homes. We use other funding sources but are looking to expand our reach and ability in doing these sales. We will be rotating approximately 50 – 100 transactions on a monthly basis and due to the volume we are in need of transactional funding. We have the Buyers, Properties and Banks all ready too do the transactions but need the capital for that one day to close and sell. If this is something that your company does I would like to speak to someone in order to get this started with your company. I look forward to speaking to someone at your company.
Regards,
Hector Alvarez
Managing Member
Halo America
(973) 967-0456
Comment by Hector Alvarez — January 15, 2010 @ 5:31 pm