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. Transactional funding is also known as flash cash or same-day funds. Read on as we explore what Baltimore wholesalers need to know about transactional funding.
Sound Investment
Baltimore wholesalers need to know about performing due diligence and run the numbers to ensure the investment is sound with any funding source, including transactional funding because a deal is only as good as the investment. Let local professional investors like those at CR of Maryland LLC 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
If you’re looking for a quick and easy way to get funding for your next real estate deal, you may want to consider going through a hard or private money lender. These types of lenders can provide you with the funds you need to complete a deal without having to go through a traditional bank or financial institution. One of the benefits of using a hard or private money lender is that they typically don’t require a credit or income check. This means that even if you have bad credit, you may still be able to qualify for funding. However, it’s important to note that these types of lenders usually charge higher interest rates than traditional lenders.
Another thing to keep in mind is that hard or private money loans are typically only for the short term. This means that you’ll need to have a solid exit strategy in place before you apply for funding. If you’re thinking about using a hard or private money lender for your next real estate deal, be sure to do your research and find a reputable lender that you can trust.
Privacy
Another thing Baltimore wholesalers need to know about transactional 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 CR of Maryland LLC, 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 Baltimore wholesalers need to know about transactional funding. Delays in closing can add extension fees.
The seasoned professional investors at CR of Maryland LLC are familiar with everything Baltimore wholesalers need to know about transactional funding and are happy to help. Talk to one of our pros today, and you’ll see the difference for yourself that working with local investors who care about Baltimore and our neighbors here makes. Save time by working with the full-service team and our network of in-house providers at CR of Maryland LLC that can handle everything from locating the best investment for your needs to property management and everything in between. Helping our investors make the highest possible returns on their investments is the passion of the professional investors at CR of Maryland LLC. Save money by avoiding costly mistakes because you’re working with professionals for a small fee. And don’t forget to ask about the current inventory of the best investment properties available in Baltimore at CR of Maryland LLC. Call CR of Maryland LLC at (443) 391-7080.