You’ve heard it all before:Â “No Money Down!”, “No Credit, No Problem!”, “Fast Cash!” What a bunch of hype, right?
Transactional funding is short term money that you can use to get your deals done. The money isn’t dependent on your credit score or credit history. You can get 100% of what you need to facilitate a deal.
Let’s say, for example, that you have a database of buyers for a certain assets and you know more or less what they’re willing to pay. When you source the deals your presenting to these buyers, you have a couple of options about how you can get paid. You could get the buyer to sign an agreement and pay you (no doubt the least desirable approach). You can get a listing agreement from the seller (OK that’s a little better). But in both of these cases there are a few limitations or drawbacks.
The first limitation is that in a lot of situations you’re going to need licensing for sure. Secondly, you’re going to have to have one or the other party agree to how much money you can make — after all, they are paying you. Finally, you are potentially limiting the number of transactions you’re going to be able to do between these two parties. How many times are they going to leave you in the middle after you’ve laid all your cards on the table?
Well, what if you just bought the deal as low as you could and sold it for as much as you could? Offer the seller all cash and minimize your contingencies and you could put yourself in a strong negotiating position.
If you can find the lowest price that seller is willing to take as well as the highest price that a buyer is willing to pay, AND there’s a larger than usual spread for you — what’s wrong with that? Nothing I say. Oh wait, you don’t have the cash to close? Balance sheet ain’t all it could be?
Welcome to transactional funding.
What is Transactional Funding?
Transactional funding is very short term money that you can use to get your deals done. It bridges the brief gap between when you take possession and when you sell.
Transactional funding costs more than traditional financing because it’s easy to get and because the lender is taking all the risk. You can use it for things you could never do with traditional funding, and it is designed for doing deals.
If you haven’t heard of this before and your B.S. meter is going off the charts, then just follow with me for another minute, because this is the real deal.
Duane Ortega is the man behind the business that I’m talking about, and in this recording you’re about to listen to him spill the beans about:
- what transactional funding is
- how he got started in it
- how you can use transactional funding
- what it will cost you
- case studies to show you what some of his past clients have done
If you’re a hustler (in a good way) but you need cash to get your deals done, I recorded this for you.
Brief Bio from Duane Ortega:
Duane Ortega has been a conventional real estate investor since the year 2000. Since 2007, he has been involved in short sales and subsequently, transactional funding. Our mission is to help all investors close deals by supplying the best transaction funding for back-to-back closings or extended back-to-back closings while EXCEEDING investors’ expectations and DELIGHTING them with our service. www.BestTransactionFunding.com
Agenda of Transactional Funding Podcast
Looking for money to close on your short sale or REO deals? Come learn about transactional funding.
What is transactional funding?
Transactional Funding is used most-commonly for the first transaction of a back-to-back transaction or extended back-to-back closings. Also known as a One Day Bridge Loan – close on your end buyer on the same day! 100% funding (known as “wet funds” or “good funds”) for A-B-C transactions where an investor (Party B) has negotiated a short sale (from Party A) , and needs to close in their name, in order to immediately, profitably, sell to another party (Party C) on the same day.
- What is a back-to-back transaction or extended back-to-back closing?
- What are the qualifications to receive funding?
- What are the terms and conditions?
- Is it really that easy?
- What’s the catch?
Find out the details and more in this interview.