I know you only get to use transactional funding when you have a buyer already lined up ready to buy your deal. When I first get the property under contract with a purchase agreement, I got 30 or however many days I choose to find a buyer. Since I have time to find a buyer after the purchase agreement is complete, can I then use the transactional funding once I find a buyer within those 30 days?
Antonio Bodley, Yes, that is correct and the basis of the transactional funding business. Depending on the time frame the end buyer can close in you may be able to use transactional funding, or may need private or hard money if the buyer is not approved for their mortgage.
Savannah Leigh Thanks. By the way, why is it that I only see transactional funding companies online? I do not know where to find a local company in my area that does transactional funding.
Most transactional funding companies fund nationally, or at least within their region. There is not enough volume to only fund locally, so there are many fewer companies compared to hard money lenders.