What Transactional Funding Lenders Need?

 

How to set up for transactional funding lenders.

What you need the most for transactional funding is a profitable real estate deal. You

need a motivated seller and an equally motivated end-buyer who come together with

the real estate investor in the middle to coordinate the two closings.

These two closings are usually referred to as double closings and the parts are referred

to as the A – B “leg” and the B – C “leg.” In these legs the “A” individual is the property’s original seller and the investor is designated as the “B” entity. Finally the

end-buyer is referred to as the “C” buyer.

The real estate investor himself only needs to qualify for the transactional funding by having a closing agent who has done the preliminary HUD-1 Closing Statements and has the

end-buyer’s wired funds in his escrow account. Once these elements are in place, the closing agent can have all the necessary documents signed by the parties to the transaction and

proceed to disburse the proceeds to the original seller (“A”) and the investor (“B”).

Transactional lending is simple in its basic concept and functionality. All of the complicated ingredients of the closing are handled by the closing agent and he gets paid on the HUD-1

Closing Statement for completing the two legs of the transaction.

The beauty of transactional lending is that is allows real estate investors the ability to do any sized transaction with no money in the deal. All the funding for the A – B leg is borrowed from the transactional funding lenders

There is no down payment required, no document stamps for a mortgage, no inspection of the property or survey required. All these and more requirements may be necessary for the end-buyer to close, but they will have been completed long before the transactional lenders allows his funds to be used to buy the property.

 

The documents required by the transactional funding lenders are very limited and can be completed in minutes. Likewise, the approval or denial of the transactional funding can

be done in minutes once the borrower’s documents have been reviewed.

If you intend to borrow transactional funding , don’t wait until the last minute to apply to the transactional funding lenders because they may not have the amount of funds you need at the time

you need them

About Dave Dinkel 27 Articles
Dave Dinkel graduated from the University of Florida in 1968 with a BS in Chemical Engineering. He initially worked for a petrochemical research and development company in Illinois. Later he entered the financial arena as a stock and commodity broker with Merrill Lynch.While a stock broker he became a Certified Financial Planner and later started his own brokerage firms and stayed in the financial services industry for 22 years before retiring to pursue his love of real estate investing. After retirement, and because of his interest in business start-ups, he worked with a small company for a few years while driving their sales from under $12,000,000 to over $150,000,000 annually before going back to full-time real estate investing.Dave Dinkel has been a national platform speaker, contributor to local real estate clubs, mentor and consultant to numerous real estate investors and all the while running his own real estate business. Mr. Dinkel received the following degrees or designations: BSChE, FINOP, CFP, MSRP, RSP, RR, ROP, SROP, MGA, GA, Certified Estate Planner, Licensed Mortgage Broker, and Licensed Insurance Agent. He is often referred to as the “Teacher of Teachers” and his Mentoring continues to produce Students who go on to be national real estate "Gurus". .He has been a real estate investor since 1975 and recently received the first-ever Lifetime Achievement Award for Contribution to the Real Estate Investing Community. While being active in real estate investing for over 40 years, he and his wife Nancy have been married for over 52 years. He is most well known for the development of his Mentoring Program that has been called, "The Best Mentoring Program in the Country" which he continues today.In addition to his Mentoring Program, he started a full-service transactional funding Program so that new investors had the ability to do deals with no money of their own. He challenged the funding industry by making borrowing money very simple with his "One Point Funding Program" which has revolutionized the transactional funding industry and made millions of dollars available to investors who otherwise could not have afforded it. Currently his transactional funding is only available in Florida.Get more information about his real estate investing mentor program at http://www.DaveDinkel.com