We currently fund deals in all 17 states: CA, CO, FL, IL, IN, MD, MA, MO, NE, NJ, NC, OH, PA, SC, TN, TX, UT. (Call Now: 800-798-8466).
One Day Transactional Funding
Transactional Funding is a short term loan provided to real estate investors who are buying and selling houses. The loan is used to close on the purchase of the home and it is paid back when the house is sold to a third party. The key element that defines a loan as “Transactional Funding” versus “Hard Money” is that the end buyer is under contract at the time the loan is made for the close on the purchase.
Example of a One Day Transactional Funding Deal
Let’s say you get an approval for a Short Sale on Mr. Smith’s house at 123 Main Street for $100,000. You find a buyer, Ms. Jones, who will pay $120,000 for that house. In order for you to get the profit between the $100,000 that you are buying it for and the $120,000 that you are selling it for, you must first close on the house and pay the Short Sale Lender in full for the purchase.
In this transaction, Mr. Smith is party “A”. You are party “B”. Ms. Jones is party “C”. VH Funding loans to you the $100,000 so that you can buy the house from Mr. Smith. This is the A to B part of the transaction. You then sell the house to Ms. Jones in a second closing the same day. This is the B to C part of the transaction. At the B to C Transaction closing, you pay back the $100,000 loan plus interest/fees, and get the difference from that amount and the $120,000 that Ms. Jones is paying for the house.
Voila: You walk away with about $20,000 cash in pocket and you never had to put up a dime of your own money!
A > B Transaction: Investor Buys House from Seller
B > C Transaction: Investor Sells House to New Buyer
We must have everything below 2-3 business days prior to closing. Please scan and sent these documents to this email: email@example.com
- The contract between the Seller and the Buyer (the A-B transaction)
- The contract between the Buyer and the End Buyer (the B-C transaction)
- If you are buying in a Trust: the Agreement and Declaration of the Trust, the Appointment of Trustee, Assignment of Beneficial Interest, the Affidavit of Trust, and the Deed to Trustee
- Short Sale Approval letters from all lenders, or HUD/REO Acceptance letter (if applicable)
- State paperwork verifying your LLC, corporation, or registered business of B Buyer
- Scanned copy of a photo ID with signature of all signers on both the B and C transactions
- The contact name, phone, & email address for the C Buyer’s lender to verify knowledge of the flip or proof of funds if it is a cash purchase
- The contract for the Assignment of Beneficial Interest (if applicable)
Please submit your info below or Call us: (800) 798-8466