Transactional Funds - What Is Transactional Funding and How Does It Work?

http://www.REIClub.com - Here's a Definition of Transactional Funds and How to Use Transactional Funding For Your Back-to-Back Closings.
What is Transactional Funding and Why Do People Use it:

To apply for Transactional Funding, go here...
http://fastinvestormoney.com/

What is Transactional Funding and Why Do People Use it:
Also referred to as: flip funding, double close funding, bridge funding, back-to-back funding, simultaneous funding, gap funding

- Short term loan commonly used to finance the A-B side of a short sale or REO wholesale transaction. Seller (A) → Investor Buyer (B) → Cash Buyer or Qualified Buyer (C)
- There is no credit check or income verification required.
- Funding usually covers ALL cost including closing, and fees are taken from the sale price. So nothing out of pocket.

The major stipulation is that you have to have an end buyer lined up to purchase the property from you immediately after you close the A-B sale

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Paperwork:
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- Contract to Purchase the property
- Estimated HUD-1 Statement for A to B transaction
- Short Sale Approval(s) (if applicable)
- Title Commitment
- Contract to Sell the property
- Verification of Buyer C Funds or Conditional Loan Commitment
- Estimated HUD-1 for B to C transaction
- Clear copy of government issued ID for the Borrower
- Corporate Documents for entity taking title (if applicable)

How does the process work:
- Identify the property of interest - Short Sale or REO
- Request Proof of Funds (letter) - http://fastinvestormoney.com/proof-of-funds/
- Execute buy and sell contract
- Request funding
- Submit transaction documents
- Lender Review
- Loan approval
- Funding
- **Extended Funding - 30-day holding period
- 90-day Seasoning Rule - expired in Feb.

What it WON'T Fund:
- Rehab Projects (Fix and Flip)
- Earnest Money
- Escrow Deposit
- Non-Real Estate Transactions
- Transactions outside of the United States

Transactional funding allows you to close on properties quickly and same day without a single cent of your own money. It also bypasses the tedious loan process, and your credit doesn't play a roll in the qualification process. If you have questions about how many points, percent, fee is charged per transaction, I would simply contact a transactional funding company because they do vary from lender to lender. I have seen anything from 2-3 points.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.
http://www.youtube.com/watch?v=dWeGLIQEDl8

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[Purpleregins4ever]

Does it cover Realtor commissions

[reiclub]

@Purpleregins4ever Yes. Realtor fees are usually calculated into total closing costs, which is usually covered by Transactional funding.

[FiVibe]

Great Video, good clear information thanks

[newlifeprop]

Thank You, I appreciate that the information was easy to understand and thorough. Thanks for sharing.

[megajimus]

I really like this video. Very informative and on point.

[coperchio1]

Hey Frank Thanks for all the good work.

But I have a question; - How do you get around from EMD or is there any transactional funding that can fund that as well ,especially when you dealing with luxury homes?

[sacredsoul09]

Hi. Good video. Down and dirty and no time-wasting. I like it!

[MrDavehuntsman]

Frank wonderful information. Thanks for doing these training videos.

Dave Huntsman

Huntsman Homes, Inc.

[rennerrealty]

Hi Frank, Good video - Glad to see you and Tim coming to our video workshop next week. Look forward to meeting you. Kenn Renner

[JBBI2011]

Great definition and explanation for transactional funding. I like that you answered a question that I had as well about funding for repairing distressed properties. Can you please do a short video on hard money lenders too?