Having been in this business a very long time, one of the biggest obstacles I hear about on a regular basis is how do I acquire funding for my deals? Most everyone should be aware by now that things have changed over the past few years as far as flipping houses is concerned. The old days of using your end buyers money to fund deals just no longer exists. That’s when you the investor has to come in and use your own money to fund the purchase which is why the question always comes up how do I get funding for my deals?
Well if you don’t have a rich uncle or a rich friend that will let you borrow their money for a short time then it’s required that you go find money from someone else. So you got a couple options. Number one you can do the deal that doesn’t require financing for example like an assignment. To do an assignment though, the property cannot be held by a bank. So sorry must be done with an individual who is selling a property. With an assignment you don’t need any financing because you’re basically signing the contract to your end buyer so no financing is ever needed.
If you are dealing with the bank unfortunately banks will not allow assignments. So when you’re dealing with a bank, the other alternative is to use transactional funding. There are lots of companies that offer transactional funding. Transactional funding is basically a short-term loan but technically it’s not a loan because your credit and income are not needed in order to qualify. Let me repeat that… Your credit and income are not needed in order to qualify for transactional funding. Let me explain.
The way the transactional funding works is you find a property that’s a great deal and you negotiate an offer with the bank which is submitted to them and accepted. You then turn around and find an end buyer who is willing to pay more for the property that you just agreed to buy. Preferably the end buyer that you are looking for is an all cash buyer. So then what happens is your all-cash buyer comes in to closing and closes on his side of the deal which is between you (the investor) and him. Once his money is in escrow then the money from your transactional funding partner is used in the transaction between you and the bank. So there’s two separate transactions that take place and you’re not using your end buyers money to fund the deal.
This is a very safe transaction because If you’re end buyer does not fund on their end, the transactional funding partner doesn’t fund on his end either. This protects him as well. This is why we don’t care about credit or income. Where it gets Sticky is when you’re in buyer needs to get financing. When your environment is it financing that’s when the transactional funding partner is at most risk. Typically because There may be certain restrictions and they’ll want to see the individual on title for a certain amount of time. So Cash Buyers are the best.
Fortunately for you we have both of these covered. Not only do we have cash buyers for all your deals, we also offer transactional funding to all of our students. The best part is it’s unlimited you can use our funding on his many deals as you want and Also our proof of funds. A lot of banks anymore are also asking for verification of deposit (VOD). Yes that is also part of our transactional funding that you will have access to.
So if you have the same question about where or how do I acquire funding for my deals, know that I’ve got your back. If you need funding for your deals, I’ve got it. If you need a proof of funds letter I’ve got it. If you need a verification of deposit I’ve got it. If you need cash buyers I’ve got those as well.