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Transactional funding
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Short or "transactional funding" is a temporary loan used by a real estate investor to purchase an investment property which will be immediately resold for a profit. Transactional funding is typically used in short sale investments, REO flips, whole sale flips, and other various investments. These loans are generally lent at 100% of the loan to value ratio, but other loan amounts can be made at the discretion of the lender. Additionally, many of these loans are not seasoned and are repaid with interest within 24 to 72 hours of the sale. Many lenders charge a flat fee for smaller loan amounts, and can range anywhere from 1 to 6 points depending on the size of the loan. Common Terms Although the lending industry has widely accepted the term transactional funding to describe this type of loan, other used terms include: * Flash Cash * Short Sale Funding * Wet Funding * Hard Money * Double-Close Funding * Back-to-Back Funding * Transitional Funding * Simultaneous Funding * Temporary Funding See Also
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