What do you know about transactional funding? Wholesalers often locate deals with motivated sellers who agree with the arrangement. The wholesaler then locates an end buyer, making a slight profit without being involved in the actual transaction. However, there are cases in which this isn’t always an option; for example, no assignment clauses often force wholesalers to use a simultaneous or double closing. Instead, wholesalers utilize transactional funding for a short duration, the time it takes for the two transactions to close, typically back to back, anywhere from one to five days.
You may be familiar with the term ABC loans. For example, the seller is Party A, and you are party B, who takes the title in the first closing. After that, you will sell the property to an end buyer in another transaction, known as party C. Transaction funding is also known as flash cash or same-day funds. Read on as we explore what Northern Kentucky wholesalers need to know about transactional funding.
Northern Kentucky wholesalers need to know about performing due diligence and run the numbers to ensure the investment is sound with any funding source, including transaction funding because a deal is only as good as the investment. Let local professional investors like those at We Buy NKY Houses help you locate the right property for your needs; we know the red flags to watch for and can zero in on the best property to bring the highest returns on your investment.
Hard or Private Money Lender
Northern Kentucky wholesalers should understand that transaction funding is when a third-party investor wires the funds directly to the title company, allowing wholesalers to complete a deal and grow wealth without using their funds. You should be aware these funds cannot leave escrow. There is no credit or income check when you borrow these funds. However, you will need to have a purchase contract to confirm that the deal with your buyer is sound for the lender. Seasoned investors like the pros at We Buy NKY Houses can help you locate lenders to pursue this option if necessary.
Another thing Northern Kentucky wholesalers need to know about transaction funding is that by using a double closing, the details are private and unknown to your buyer and visa versa, which keeps your profits from the transactions private. And while it isn’t anyone else’s business, there are still cases where knowledge of these figures has caused emotional difficulties to arise from both sellers and buyers and ended great deals. Working with highly skilled investors, like those at We Buy NKY Houses, means you can be confident that your transaction will flow smoothly.
Transactional Funding Fees
A transaction funding fee can range from 2 to 12%, which is another thing Northern Kentucky wholesalers need to know about transaction funding. Delays in closing can add extension fees.
Help in Selling Your House with We Buy NKY Houses
We Buy NKY Houses buys houses directly – and if that doesn’t sound good to you, we can help you list on the MLS and sell for top-dollar, or, we can do all of the work for you, you choose! There are many more reasons why Northern Kentucky real estate investors should also be licensed agents providing the most beneficial aspects of each and the conveniences of both. No matter what obstacles you may be facing, We Buy NKY Houses has the right option in Northern Kentucky for all of your real estate needs.
We Buy NKY Houses answers concerns about selling your property or any questions you may have with absolutely no obligation. At We Buy NKY Houses, our hybrid professional buyer real estate agents are ready to help you today. Send us a message or call We Buy NKY Houses at (859) 412-1940
If you have questions like: Why would you use transactional funding? How do you use transactional funding? Then give us a call. Our Real estate experts will be able to answer any questions you have, can make recommendations, and may be able to provide you with an offer over the phone!