Transactional funding is a short-term, hard money loan that allows a real estate wholesaler or investor to borrow capital to purchase a property. It’s an ideal financing solution for wholesalers who are looking for a capital resource to facilitate a double closing.
Transactional funding is also known as flash funding, same-day funding, ABC funding, a transactional loan, or a one-day bridge loan. Although less common than other forms of real estate financing, it may be the right fit for you depending on your real estate investment strategy. Continue reading to learn more.
Why Would You Use Transactional Funding?
Transactional funding is ideal for real estate investors seeking to purchase property for wholesaling or investment without using their personal funds. Most hard money lenders will not require a credit check or down payment as long as the investor has an end buyer. Typically, lenders provide 100% of the requested finances, as long as the borrower has another end buyer under contract to purchase the property within a short time frame.
What Fees are Associated with Transactional Funding?
The cost of transactional funding varies between lenders. Most lenders charge a percentage of the original loan amount (anywhere from 2-12%) in addition to a minimum fee.
Loan Ranger Capital’s transactional funding program offers a highly competitive loan fee of 1-2 points and a document of $595 – no application fees or other junk fees required. We do not run credit or background checks, and tax returns or other financial documents are not required for approval.
How Do You Qualify for Transactional Lending?
It’s much easier to qualify for a transactional loan than a traditional loan – or, for that matter, any other types of hard money loans. There are only two requirements to qualify for transactional lending with Loan Ranger Capital:
- A signed and executed contract with proof of a waiting end buyer
- A lender title insurance policy
Transactional Funding Programs in Texas and Tennessee
Here at Loan Ranger Capital, our transactional funding program is a great fit for wholesalers looking to sell property using a double escrow. We’re able to provide a Proof of Funds letter in just a few hours so you can be ready to close on your next real estate deal in days – unlike some hard money lenders who may not be able to help you close your deal for weeks.
Loan Ranger Capital is widely recognized as one of the premier lenders for Texas real estate investment – and we’ve recently expanded to the state of Tennessee as well! Our in-house team of finance experts moves quickly, always has cash on hand, and never sells or brokers your loan.
If you think our transactional funding is right for you – and you’re located in Texas or Tennessee – apply now or contact us today. We’re committed to our customers and we look forward to helping you succeed in your next real estate investment opportunity.