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  • Writer's pictureDan Caradonna

Can Transactional Funding Save Your Real Estate Deal When You're Short on Cash?

In the volatile world of real estate investment, cash shortages can dramatically affect your ability to seize lucrative opportunities. When traditional financing falls through or isn't fast enough to meet the demands of a hot deal, transactional funding stands out as a potential savior. This specialized form of financing is designed to bridge the gap for investors, particularly wholesalers, who find themselves cash-strapped at a critical moment. Let's explore how transactional funding can save a deal when you don’t have the money.


What is Transactional Funding?


Transactional funding is a short-term loan used primarily in real estate transactions involving a quick resale of the property—often on the same day or within a few days. This type of funding is especially popular among real estate wholesalers who enter into a contract to purchase a property and then sell it quickly to an end buyer at a higher price.


The Lifeline for Cash-Strapped Investors


Here’s how transactional funding can be the lifeline you need when you’re facing a cash crunch:


1. 100% Financing for Quick Flips

One of the most appealing aspects of transactional funding is its ability to cover 100% of the purchase price. For investors who find the right deals but lack the funds to close, transactional funding steps in to provide the necessary capital. This means you can pursue profitable deals without having your own money at stake.


2. No Long-Term Financial Commitment

Since transactional funding is designed to be a short-term solution, you're not tied into long-term financial commitments. This is ideal for investors who need immediate funds but do not want or cannot afford the risk of longer-term debt.


3. Bypassing Traditional Loan Requirements

Transactional funding does not require credit checks, proof of income, or employment verifications that traditional lenders often demand. The approval process focuses solely on the viability of the deal itself. If you have a buyer lined up and a solid exit strategy, you can qualify for funding, even if your financial situation does not meet traditional lending criteria.


4. Enabling Double Closings

Many real estate deals, particularly those involving wholesale contracts, utilize a double closing method. Transactional funding is perfect for this strategy as it provides the funds to purchase the property from the seller, which you can then immediately resell to your end buyer. This process ensures that both transactions can be completed back-to-back, using the transactional funder's money without ever dipping into your own pockets.


5. Speed of Transaction

In real estate, sometimes the speed at which you can close a deal is just as important as the deal itself. Transactional funding can be arranged quickly, often within a few days, which is crucial when dealing with properties that are highly sought after or when you are under a tight deadline to close.


Conclusion


Transactional funding is not just a funding option; it's a strategic tool that can rescue potentially profitable deals when you're out of financial options. It offers a practical solution to the common problem of insufficient funds, allowing investors to act quickly and decisively in the market.


If you find yourself in a situation where you’ve lined up a great deal but don’t have the money to proceed, consider transactional funding as your financial lifeline. At Elite 360 RES, we specialize in helping investors turn constraints into opportunities. Contact us to find out how our transactional funding solutions can help save your next real estate deal and keep your investments moving forward.


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