Call us now at 1-800-598-1178
to get started.
This page contains some
basic questions about transactional funding. If your question
is not covered here, please call us at the above number to discuss your
question. Our intent with these questions is to educate you about what
transactional funding is, how you qualify for transactional funding,
and
how transactional funding can benefit you. Some people also
refer to this type of funding as "flash funding","1-day dough", "dough
for a day", or a "short bridge loan".
- What
is transactional funding?
Transactional
funding is funding made available to close the "A-B" portion of
back-to-back (a.k.a. "double closing") real estate transactions that
occur on the same day.
Back-to-back transactions consist of an "A to B" and "B to C"
transactions. The "A to B" transaction must occur before the "B
to C" transaction, and the transactions must close on the same day with
the same title agent or attorney.
- What
do you mean by "A", "B", and "C"?
- "A"
refers to the entity selling the property (e.g. home owner, bank,
commercial property owner)
- "B" refers to you, our
client, who is usually an
investor
- "C" refers to an
end-buyer who could be an
owner-occupant or another
investor
- What
types of transactions benefit from transactional funding?
As long
as the back-to-back transactions are occurring on the same day, the
following transactions can use our transactional funding.
- short sales
- REOs
- Any
other commercial or residential real estate transaction where real
property is
being acquired by an entity (e.g. corporation or LLC) from a
seller and that same property is
being re-sold to a different buyer on the same day
- Do
you check my credit to determine if I qualify for your
transactional funding?
No.
The transaction itself determines if transactional
funding can be provided for your transaction. Your credit does
not matter.
- Can
you provide a proof of funds letter?
Yes.
Once you have applied, a proof funds can be be provided to you.
- Can
closing cost for the "A to B" transaction be funded?
Yes.
100% of the "A to B" transaction can be funded.
- What
are your fees?
The
following table shows the fee structure. In addition to the
transaction specific fees shown below, there is a $500
commitment fee
that is payable at closing. There are no other fees.
Transaction Size
|
Fee
|
up to $100,000
|
$1500 flat fee
|
$100,000 to
$600,000
|
1.5%
|
$601,000 to $1 million
|
2.5%
|
over $1 million
|
Depends on the
transaction
|
- Can
you provide funding for a transaction that takes more than 1 day?
No.
The back-to-back transactions must close on the same day with a single
closing agent. The only exception to this is that we willl look
at California transactions that sometimes take up to 3 days to close.
- How
much lead time do I need to apply for transactional funding?
For
transactions up to $500k, we need 3-4 business days lead time.
For transactions over $500k, we need 5-7 business days lead time.
- Can
you provide funding for the "B to C" transaction?
No. We only provide funding for the "A to B" portion of the
transaction. The "C" buyer must provide financing for the
"B to C" portion of the back-to-back transactions. The
funds for the "C" buyer must be wired to the closing.
- Do
you provide financing
in my state?
Yes. We can provide transactional funding in all 50
states.
- Can
you help me find a title company if mine is not familiar with
back-to-back closings?
Yes. We
have a national title company we can refer you to.
- What
information do you need from me to get started?
We need
your name, E-mail address, and phone number to start the transactional
funding application process. Our agents will help you complete
the rest of the application process.
- What
paper work will I need to provde about the transaction?
We willl
need the following paper work from you for the transaction.
- the purchase and sale agreement you have with the bank
and/or property owner
- the purchase and sale agreement you have with your
C-buyer (the party buying the property from you)
- proof of funds for your C-buyer
If you have
additional questions, or if you would like to start the
process to see if your transaction qualifies for transactional
funding, please
click here
to contact us.
Call us now at 1-800-598-1178
to get started.
|