BiggerPockets

I'm a newbie and have recently seen many ads for websites offering "transactional funding" on gmail. Can someone explain the process? All the ads give you is a vague, though very optimistic, blurb about how their company gives you all the money you need, no credit or income verification necessary, just easy money with nothing down, like all the hucksters promise.
What kind of transactions are they talking about? Is this a legitimate tool for investors? Something newbies could use? What are the real costs?

Thank you Justin. That explains it nicely.

David-

To be honest, I'm not sure. My title company handles the transactional part for me. He's a private individual who just says give me three days notice and the money will be there. I've only done one close with him but it worked.

You can get POF letters from coastal funding. I haven't used coastal funding but I think their terms are comparable. One of the owners, or agents is a member on BP.

What does it take to start one of these companies?

Justin is correct. No credit or income verification or underwriting of the property, but you do need to have the end buyer lined up for a same day closing.

This post is a bit old, but a question... if the end buyer is getting a loan for the purchase, using a hard money lender, how does the wholesaler justify the increase in price? Doesn't the hard money lender check for ownership and/or asking price prior to funding?

I would say that most of the time the lender for your C buyer will not be Hard Money. But either way, you "justify" the value by an apprasial and you explain any rehab work you did or that you simply got a great deal on your purchase. You purchased wholesale and you sold retail.

BTW, some transactional lenders charge less that 2% with none of those extra pesky fees and minimums!

Never pay 3%!

I'm a little late to the topic of discussion but I'd be more than happy to answer any questions regarding transactional funding.

Thanks

Guys -
Please respect the forum rules and stop advertising. I've already removed several posts and have edited others. This is not an advertising forum, and the OP was asking for help answering his questions; he wasn't asking for people to advertise their services to them.

Post your ads in our Mortgages & Lending forum.

Thank you.