How is this possible? Herewith a brief and introductory explanation of what transactional funding essentially entails, how it works, and so forth. After that, should the interest be strong, it becomes your responsibility to seek out a bit more authoritative and qualified information and advice on this funding concept.
This is a method of supplying money direct for the purposes of purchasing a property already sold on to another buyer. All this essentially means is that the sale generates funds that could be utilized just for the 24 hours it takes for the investor to close with the seller. A funding process is kick-started when the investor obtains his property in contract from the seller of the property.
The nature, size and purpose of the property is irrelevant at this stage. The transaction realized does not, however, leave the investor with funds to close the deal with his seller. This is, however, deliberate. Otherwise substantial profit has already been realized. But the size of the investor’s profit margin requires discretion. This is desired and deliberate. Only once the investor has found his buyer, will he be able to close his property purchase and sell it on to what is known as the end-buyer to help him realize his profit motive.
Another term applied to transactional funding is that of an assignment of contract. It is certainly also a form of short-selling, as carried out over portfolios of bank owned properties. Note that a relationship between investor and seller must exist. But the returns objective cannot always be realized. Such relationships could still, however, be prevented by third parties, whether they have vested interests in the transactional business or not.
Explore this funding option further to determine whether it can be a secure one.