Definition
Transactional funding is a short-term loan used to finance the purchase of property or assets, typically for real estate investors. The loan is repaid quickly, often within a few days, after the property is resold or transferred.
Related Services
Real estate financing, short-term lending, and investment consulting services support transactional funding by providing capital to real estate investors engaged in "fix-and-flip" or similar investment strategies.
Problem and Application
Transactional funding is commonly used in real estate transactions where the investor buys a property and resells it almost immediately. The challenge is ensuring the transaction is completed in a timely manner to avoid fees or penalties.
Conclusion
Transactional funding offers real estate investors the flexibility to complete quick-turnaround deals. By utilizing this funding method, investors can seize profitable opportunities without significant capital outlay upfront.
