In the aftermath of the real estate bubble burst and the implementation of stringent lending policies, savvy investors and wholesalers navigating the world of distressed properties turned to transactional funding as a game-changing solution.
Understanding Transactional Funding:
Transactional funding, a short-term financing strategy, has become the go-to method for investors and real estate wholesalers seeking to secure and quickly resell properties without utilizing their own capital. This method, commonly known as simultaneous closing, offers a lucrative avenue for closing deals efficiently.
Applications in Distressed Properties:
For real estate professionals dealing with probates, bank-owned properties, and short sale scenarios, transactional funding emerges as a crucial tool. These types of deals often come with stipulations mandating a swift initial sale before the property can be resold to another entity.
Key Benefits of Transactional Funding:
1. No Credit Checks or Proof of Income: Transactional funding relies on the strength of the deal and the security of having a confirmed end buyer, eliminating the need for credit checks, proof of income, or extensive paperwork typically associated with traditional real estate loans.
2. 100% Funding: With an end buyer in place, transactional lenders can fund the entire purchase price, enabling investors to proceed without utilizing their own capital.
3. Quick Closings: Companies specializing in transactional funding are adept at providing fast capital for real estate deals that demand rapid turnaround. Investors can secure funding within hours or days, streamlining the closing process.
4. Double Close Using Other People’s Money (OPM): Investors can leverage a third-party lender to fund the deal, engaging in a double closing process that involves back-to-back property purchases using the original seller and the end buyer.
Qualifying for Transactional Funding:
Qualification for transactional funding revolves around having a property seller and documentation confirming a qualified end buyer. The accelerated nature of these deals, coupled with the absence of traditional loan paperwork, results in a swift approval process, typically taking just a day or two.
No appraisals. No credit checks. No proof of income. No job verifications.
Contact Elite 360 RES for Transactional Funding Information:
Successful real estate endeavors hinge on having a solid exit strategy. Elite 360 RES, a reliable real estate investment company, can provide comprehensive information on navigating transactional funding for real estate deals. Contact our professionals today to unlock the potential of transactional funding in your property ventures.