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 homebuyer, 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 fast in Omaha and Council Bluffs to an end homebuyer 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 Omaha and Council Bluffs wholesalers need to know about transactional funding.
Omaha and Council Bluffs wholesalers need to know about performing due diligence and run the numbers to ensure the investment is sound with any funding source, including transactional funding because a deal is only as good as the investment. Let local professional direct cash home buyers in Omaha and Council Bluffs like those at Harter Investments help you locate the right property for your needs we know the red flags to watch for and can zero in on the best property to bring the highest returns on your investment.
Hard Or Private Money Lender
Omaha and Council Bluffs 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 homebuyer is sound for the lender. Seasoned investors like the pros at Harter Investments can help you locate lenders to pursue this option if necessary.
Another thing Omaha and Council Bluffs wholesalers need to know about transactional funding is that by using a double closing, the details are private and unknown to your homebuyer 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 home buyers and ended great deals. Working with highly skilled investors, like those at Harter Investments, 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 Omaha and Council Bluffs wholesalers need to know about transactional funding. Delays in closing can add extension fees.
The seasoned professional home buyer in Omaha and Council Bluffs at Harter Investments are familiar with everything Omaha and Council Bluffs 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 Omaha and Council Bluffs our neighbors here makes. Save time by working with us at Harter Investments! We buy houses in Omaha and Council Bluffs and we 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 home buyers in Council Bluffs and Omaha at Harter Investments. 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 Omaha and Council Bluffs at Harter Investments. Just call a professional direct cash home buyer in Council Bluffs and Omaha from Harter Investments at 402-939-6556 or send us a message today or visit us at www.harterinvestments.com!