Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
I'd love of explanation of what this is. I may be in position to investigate this opportunity and would appreciate some info from folks that have actually been involved in it. Can it be a win-win-win for everyone and can I make some money doing it? Thanks in advance. Rich.
Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
17y
Rich-
I've never lended but I have borrowed using this method.
Transactional lending is used for a double close. The double close is required when dealing with bank either in a short sale or REO. You would lend the money on the A-B transaction between the bank and the investor.
Typical lender lends at 2% of the purchase plus $250 for "paperwork". Most lenders require a minimum $2500 to do business. You would lend your money for 24-72 hours, then be repaid once the B-C side of the transaction is completed. They lend 100% of the A-B side.
My lender requires:
A-B Contract
B-C Contract
Approval letter from the bank
Insurance on the property
Once I send him that, he okays the funds to the title company. He lends with a 72 hour notice.
The promissory note is written such that I do not incur any penalites if the funds are wired back within 72 hours. After 72 hours it is 18% interest rate.
Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
17y
Sorry!! Didn't intend to hijack or really "advertise", just going with the flow of the conversation and didn't really realize what it appeared I was doing.
If I did intend to "advertise" my services, I wouldn't do it buried in someone else's thread...I'd start my own.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
17y
Jason- other states as well. Did you receive the package yet?
Eric-By the removal of your solicitation, I'd say starting a new post would be wise and from experience,,, I'd try classified or somewhere else. Thanks. Rich
Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
17y
Again, I was not soliciting...I don't even have a service to sell yet. I have no website that I advertise in my signature, no business that I promote in my profile. I am one of the least "commercial" people on the board.
I thought we were just discussing the business of transactional lending and Rich expressed his desire to get into it and I did also. Rich openly discussed potential business transactions with Justin. Is that soliciting business or just discussing a business? If Rich and Justin do a deal together, does that mean Rich "solicited" him via this thread? I am just confused as to the line of what solicitation is.
I thought it was just investors discussing a business....no big deal.
I simply also expressed a desire to continue discussing possible ventures if someone wanted to....just like others discuss possibly working together. I am just confused why I am accused of soliciting when I was just taking part in a discussion. There are TONS of very blatant solicitations here that are not addressed or removed. People constantly trying to refer people to their websites in their posts. Half the people here are ONLY here to solicit.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
17y
I would appreciate some input. I've put my EXORBITANT RATE sheet together for 24 hour loans up to 30 days in duration. I'd like some of BPNATION to tell me what they are being quoted and closing at. These will either be 100% or 90% loans. PM me if you prefer or post on here for everyone. Rich in FL.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
After tomorrow (Tuesday) I will have more fine line details of my transactional funding availability for all on BP and abroad.
I plan on having answers for both the same day (under 24 hour) transactional funding, the up to 72 hour transactional funding and the very important 30 day transactional funds (which are not available by the traditional flash cash companies) an answer for the Bank of America 30 day seasoning rule.
I meet with one of my attornneys tomorrow to discuss the details and documents needed for each transaction.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
OK short sale and REO investors, transactional funding for your deals you are requesting are ready. Send me an email for more details and a POF can be supplied to you.
Real Estate Investor · Memphis, TN · Member since 2009 · 11 posts · 0 votes
17y
question: somehow, someway, can transactional funds be used for earnest money? I have funding for a multifamily. giving the seller full purchase price but he still wants earnest money. Soooo could transactional funds kinda sorta be used for earnest money, someway somehow? I'm finding out that they will loan purchase monies but not earnest monies. Do I have it all wrong?
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
Julian, traditional transactional funders DO not provide EMD funds.
How much are you needing?
Couldn't you borrow these funds from a family member or friend? So long as you have a contingency to protect the EMD, there is no risk in losing it if you need to cancel.
How long do you anticipate needing the EMD before the close date?
Wholesaler · Mckinleyville, CA · Member since 2015 · 192 posts · 69 votes
10y
Hi everyone, I know this is a super old thread but I'm hoping someone will return to answer a quick question. Of all the wholesaling I've done, I've never thought to ask: can my.end buyer buy the property with financing? They are all approved and ready to buy. Wondering if my AB transaction can be cash with a transactional lender and the BC with his financing? I've only dealt with cash buyers in the past.
Transactional Funder · Neptune, NJ · Member since 2011 · 187 posts · 86 votes
10y
Hi Chelsea,
It can work, but C lender has to be able to wire their funds on the day of closing. Most institutional lenders will not do this until they see a recorded deed. Government programs have the same rules. This is why most C financing with institutional or government programs don't usually work out with transactional funding which require closing on the same day.
Hi everyone, i know this is an old thread, hope someone will see and reply. I have a property which was recently foreclosed and is on an online auction which needs cash plus Earnest money and will require 24hr proof of funds after winning the bid. I don’t have cash but have been pre-approved by a motgage lender on a conventional loan. I would like to know if transactional lending can be a solution in this situation and how will it work? What will be the A-B contract and the B-C contract in this case and how will it all play out.
Rental Property Investor · Dunedin, FL · Member since 2020 · 23 posts · 32 votes
5y
@Justin S. This is super helpful and a concise explanation, thank you! Do you know how an investor can get in on being a transactional lender on occasion? I'm very interested.
Washington, DC · Member since 2016 · 123 posts · 42 votes
2y
It seems that transactional lending has come back up as a hot topic because of Pace Morby and the "Gator Method" and people wanting to become "Gators"
It also seems like it is paired with JV Joint venturing, and can involve "lending" EMD for new wholesalers etc. Lot of interesting comments on this BP forum discussing it and the legal and financial risks involved.
Its crazy this was a topic 14 years ago and look now!