Transactional Funding Clarification

[Trevor Thompson]

I was doing some research about current funding options for new investors in Real Estate. I came across the option of Transactional Funding, but I'm not understanding what the funding is for.

I know that in order for this to happen you need to have a buyer lined up and ready to close. However, in order to do this you need to own this property for this to happen yes? For example, you have a $100,000 purchase and a buyer lined up for a $120,000 sale. I don't get where this funding is going to if you already have the property under your name. I figure in order to get the $100,000 purchase in the first place you would need some sort of other funding to even get the purchase, so what's the purpose of Transactional Funding?

Thanks,

Trevor