Updated over 5 years ago on . Most recent reply
Is this the gist of Tranaactional Financing.
Can someone clear this up for me or confirm my understanding?
Is this how transactional funding works:
1. Secure a contract for $50k.
2. Secure Transactional funding at say 2%
3. Secure buyer (not sure how to do this if legally I can't market a property I do not own) with purchase agreement to buy property for $75k.
4. Close with seller using 50k plus closing costs (2k) for a total of 52k from TF.
5. Close with end buyer. $52k(+$2.6k for interest) goes to TF. The rest ($20.4k) is profit for investor.
Am I understanding this correctly?