What do you know about transactional funding? Wholesalers often locate deals with motivated sellers who agree with the arrangement. The wholesaler then locates an end buyer, making a slight profit without being involved in the actual transaction. However, there are cases in which this isn’t always an option; for example, no assignment clauses often force wholesalers to use a simultaneous or double closing. Instead, wholesalers utilize transactional funding for a short duration, the time it takes for the two transactions to close, typically back to back, anywhere from one to five days.
You may be familiar with the term ABC loans. For example, the seller is Party A, and you are party B, who takes the title in the first closing. After that, you will sell the property to an end buyer in another transaction, known as party C. Transactional funding is also known as flash cash or same-day funds. Read on as we explore what Waynesville wholesalers need to know about transactional funding.
When it comes to investing in real estate, due diligence is key. You need to make sure you run the numbers and do your research to ensure that any funding you use – including transactional funding – is sound. At Asheville Cash Buyers, we specialize in helping wholesalers find the right properties to invest in. We know the red flags to watch out for and can help you zero in on the best opportunity to bring the highest returns on your investment.
Hard or Private Money Lender
Waynesville wholesalers should understand that transactional funding is when a third-party investor wires the funds directly to the title company, allowing wholesalers to complete a deal and grow wealth without using their funds. You should be aware these funds cannot leave escrow. There is no credit or income check when you borrow these funds. However, you will need to have a purchase contract to confirm that the deal with your buyer is sound for the lender. Seasoned investors like the pros at Asheville Cash Buyers can help you locate lenders to pursue this option if necessary.
Another thing Waynesville wholesalers need to know about transactional funding is that by using a double closing, the details are private and unknown to your buyer and visa versa, which keeps your profits from the transactions private. And while it isn’t anyone else’s business, there are still cases where knowledge of these figures has caused emotional difficulties to arise from both sellers and buyers and ended great deals. Working with highly skilled investors, like those at Asheville Cash Buyers, means you can be confident that your transaction will flow smoothly.
Transactional Funding Fees
A transaction funding fee can range from 2 to 12%, which is another thing Waynesville wholesalers need to know about transactional funding. Delays in closing can add extension fees.
The seasoned professional investors at Asheville Cash Buyers are familiar with everything Waynesville wholesalers need to know about transactional funding and are happy to help. Talk to one of our pros today, and you’ll see the difference for yourself that working with local investors who care about Waynesville and our neighbors here makes. Save time by working with the full-service team and our network of in-house providers at Asheville Cash Buyers that can handle everything from locating the best investment for your needs to property management and everything in between. Helping our investors make the highest possible returns on their investments is the passion of the professional investors at Asheville Cash Buyers. Save money by avoiding costly mistakes because you’re working with professionals for a small fee. And don’t forget to ask about the current inventory of the best investment properties available in Waynesville at Asheville Cash Buyers. Call Asheville Cash Buyers at 828-222-6443.