How Tough Is It Really To Find Transactional Funding These Days?
Some people confuse transactional funding with hard money lenders and private mortgage lenders, however it is actually very different in some ways. No doubt everyone has learnt that hard money lenders have become far more cautious and strict on the loans they make than a couple of years ago. It used to be that providing you had a pulse and there was equity in a property that you could get a loan. Today these hard money lenders are often offering very limited LTVs and even require credit reports and proof of income and assets in many cases. This makes it a lot more like trying to jump through the hoops of a conventional mortgage lender or bank than what hard money was designed to be like.
In contrast transactional funding couldn’t be easier to get. You need to be aware that this is not a form of financing that works for those with buy and hold strategies, but it is perfect for wholesalers and those focused on flipping houses. Transactional funding is specifically for those who already have an end buyer and simply need the funds to close on the A-B transaction first.
What do you need to qualify for transactional funding? Virtually all you really need is your purchase contract and your sales contract with proof that your end buyer has been approved for a loan or has the cash to buy the property. There are no appraisals needed, no income and asset verification or credit checks. It is really that easy and you couldn’t ask for a better way to keep a steady stream of deal flowing. A few years ago during the big boom in the housing market it was only the real pros who could get access to transactional funding and you often had to be pretty well connected to be able to take advantage of it. However, you could say that the one great thing that has come out of the recent rise in foreclosures is that transactional funding has actually become much easier to get your hands on.
Some people confuse transactional funding with hard money lenders and private mortgage lenders, however it is actually very different in some ways. No doubt everyone has learnt that hard money lenders have become far more cautious and strict on the loans they make than a couple of years ago. It used to be that providing you had a pulse and there was equity in a property that you could get a loan. Today these hard money lenders are often offering very limited LTVs and even require credit reports and proof of income and assets in many cases. This makes it a lot more like trying to jump through the hoops of a conventional mortgage lender or bank than what hard money was designed to be like.
In contrast transactional funding couldn’t be easier to get. You need to be aware that this is not a form of financing that works for those with buy and hold strategies, but it is perfect for wholesalers and those focused on flipping houses. Transactional funding is specifically for those who already have an end buyer and simply need the funds to close on the A-B transaction first.
What do you need to qualify for transactional funding? Virtually all you really need is your purchase contract and your sales contract with proof that your end buyer has been approved for a loan or has the cash to buy the property. There are no appraisals needed, no income and asset verification or credit checks. It is really that easy and you couldn’t ask for a better way to keep a steady stream of deal flowing.
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"I want thank you for the excellent service I received from Best Transaction Funding.The quick response I received from your company from the beginning of the transaction and to the end was unbelievable. I also want to give a special compliment to you as well. You went to great lengths to keep me informed and gave my title company all the information they needed to complete a successful closing. I cannot express how thankful I am. Such service builds great working relationships. I will definitely recommend Best Transaction Funding to all my fellow investors. Thank You."
- Frank Olaitan, Real Estate Investor, MD
"I can't thank you and your company enough for providing funding for our latest project, and right at the last minute. You came through with funding in less than 24 hours and coordinated with the closing agent and attorneys like you had been involved with our project the entire way. I'll know exactly where to call for the funding we'll need for our next project."
- Dave Pricken, Real Estate Investor, NJ
"Thank you so much! I just had a talk with our Realtor on both properties and told him amazing things about your company!... Normally I rehab the houses and re resells them. I just don't have the patience for that work anymore. This [transactional funding] is such a better way for me and less stress."
- Steven Kupecz, Real Estate Investor, TN
"We want to thank you for the exceptional customer service you provided. No one comes close. We had contacted a competitor the same time we contacted your company. Your company responded with in a few minutes while the competitor has yet to respond weeks later even after multiple phone calls and emails. Thanks again for the unmatched customer service."
"We had looked into several transaction lenders for a couple properties we were trying to flip. Your company was the most responsive and had the best pricing. Even though we had logistics issues with the B/C lender, your company acted very professionally and handled our requests beyond our expectations."
"Thank you for your commitment to an excellent customer experience."
- Phoenix Properties, LLC, Ronald Destefani, Investor, PA
"I was studying on how transactional funding works and you guys had the best and most thorough explanations posted so I could fully understand the details in back to back closing. I'd already started setting everything up but your video confirmed that I'm on the right track."
- La'Donna Turnipseed-Scott, Investor, LA
"....a few months back, I happened upon a video, on your site, regarding the use of transactional funding with Hud properties; and I found myself replaying the video over and over because of the value that I saw in the message...it actually explained the process, step-by-step on how to submit a Hud deal by using transactional funding. Once I completed the video, my initial response was to take immediate action by duplicating what I had learned from the video into real time. So I did some research on properties in a market where I knew I had buyers; and put together a hud deal. I then located a realtor able and willing to submit my bid online and within a couple of days, to my surprise, received a call telling me that I had won – my very 1st Hud bid."
"To you I say, ”KUDOS to Best Transactional Funding and Thank you for providing the education and services to Real Estate Entrepreneurs like me. Please keep up the good work!'"
- T. A. Davis, Investor, NJ
"You each deserve high marks for your wonderfully quick response time to each of our questions and requests! You hit home runs with us! Your application system was easy to use. Our deal met your qualifications and every time Rob Kozak or any member of Mystic Properties, LLC phoned, we received a "real" person dialing back to speak with us.
Your patience and persistence were exceptional in dealing with our business interests. Thank you for such great customer service! We look forward to working with your staff, again, in the future. We like referring people to you, as us, our team would have missed-out on an excellent earning opportunity.
Your help negotiating with our title company made our back-to-back deal, finally happen. People noticed on settlement day how effectively and efficiently your part of the transaction was organized and executed. Again, thank you for truthfully being the "BEST" at what you do!"
- Diane McAdams, Mystic Properties, LLC, Real Estate Investor, Pennsylvania
"Boy, you guys are impressive! I can’t thank you enough for scrambling and getting my deal done at the last minute like that. You and your team were awesome!"
- Donna Bauer, The NoteBuyer Inc., Real Estate Investor, OH
"Thank you so much for working so diligently with me. Your services really are the "BEST". I look forward to working with you in the near future!"
- Ericka B., Real Estate Investor, CA
