Wholesaling Bank Owned Foreclosures ‘ a Definitive Guide

Beginning investors who find themselves strapped for cash often start real estate investing by wholesaling properties to other investors.

With the market in its current condition more and more investors find that they are coming across hordes of motivated sellers. Unfortunately, all of these potential prospects tend to share one thing in common. They don’t have any equity! This little dilemma is causing many investors to turn their efforts toward bank-owed foreclosures.

The single biggest advantage associated with REOs is the fact that equity can be created instantly either by finding a hot deal or through shrewd negotiation. There’s nobody telling the bank that they owe too much on a property and can’t lower the price a bit. In theory…any house could be sold for as little as a dollar.

In fact, there is only one downside to wholesaling REO properties. Non-assignability. When an investor gets a bank owned property under contract it always comes with multi-page addendums that make the deal non-assignable.

A lot of new wholesalers will consider this one obstacle to be the end of the line where flipping bank owned homes is concerned, never knowing that there are four ways to maneuver around this bump in the road.

Method #1 – Add to Contract, Then Quit Claim

Most banks do not have an issue with adding an additional party to a contract, they just do not want the ORIGINAL parties removed from it at any time. So Ivan Investor can get an REO property under contract for ,000. Ivan calls Louie Landlord and after talking about the deal Louie agrees to pay a total of ,000 for the property.

Ivan calls the bank up and requests that an addendum be drawn up that adds Louie to the contract and title. The Bank agrees and everyone shows up on closing day.

Louie brings TWO certified checks. One for ,000 for the purchase of the property, and one for ,000 made out to Ivan. All parties then show up for closing and both Ivan and Louie then own the home. Louie hands Ivan the ,000 check and Ivan signs a quit claim deed removing him from title on that property. Pretty simple, right?

Pros: The advantage to this method is that there is only one set of closing costs. It’s a rather simple and straight-forward method that works for most deals. It works around the 90-day deed restriction that comes packaged with many Fannie/Freddie properties.

Cons: Here are the negatives that come with this method. This does NOT work for HUD properties because HUD does not allow any changes to the parties that are on the original offer and the end buyer usually cannot be getting a mortgage because a mortgage company won’t allow you to be on title if they are lending someone else money against the home.

Method #2 – Simultaneous Double-Close

The simultaneous double-close (also known as a simul close or a “dry” close) is actually two transactions. An investor is buying from the bank and then instantly reselling to a third party in a separate transaction. It follows a typical A-to-B-to-C deal flow.

The “twist” that comes with this method is that the wholesale investor never actually brings any money into play. The end-buyer’s funds are used to fund BOTH transactions. This is possible because, as long as both closings take place on the same day, it doesn’t matter which one closes first for the title company’s accounting purposes. The second transaction (B-to-C) could take place a 9am with all the paperwork for that transaction taken care of at that time while the first transaction (A-to-B) doesn’t close until 2pm.

What really matters is that the deeds are RECORDED in the proper order when filed with the county. It’s important at that time to have the A-to-B deed filed first with the B-to-C deed following on record.

Pros: This works well for those who have zero cash as long as they have a good title company that will still do these types of transactions. It still works even with end buyers that are getting conventional financing if the end buyer is getting their financing through the right lender.

Cons: This method is NOT an option if the end buyer is getting FHA financing. This method also does NOT work for Fannie/Freddie foreclosures in most cases because these super-banks put a deed restriction in place that prevents you from reselling the property to ANYONE for a full 90 days.

Also, with all double-close deals there are two sets of transfer taxes, recording fees, and other closing costs that cut into your profit. Of course you can just build that into the deal by lowering your offer price in order to circumvent this small annoyance.

The biggest roadblock to getting these transactions closed is the fact that fewer and fewer title companies are comfortable with the “dry” simultaneous close where the wholesale investor brings in no cash to the deal. In fact, they are often refusing to close these deals at all!

Method #3 – True Double Close

The true double close (also known as a “wet” close) is the same as the simultaneous close in that the investor is buying the foreclosure property and instantly reselling it to the end buyer for a profit. However, the wholesale investor is actually bringing in his own cash to fund his end of the deal.

This little difference makes the title companies happy but it doesn’t work so well for beginning investors that don’t have piles of cash sitting around to make the deals work.

Then came Flash Funding. There are “transactional funding” lenders will lend you all the money you need to do these same-day double-close deals…for a price. Most will never run a credit check or request an appraisal on the property.

The pros and cons to this method are pretty much the same as the simul close, except that on the good side more title companies are willing to do business with you if you go this route and on the bad side you have additional costs in the form of Flash Funding fees chewing away at your profits.

Method #4 – Sell The LLC

This last method has been popularized by Steve Cook who’s said that he swiped it from commercial real estate investors who have been using it for years to avoid paying transfer taxes.

The idea is that an investor would submit an offer in the name of an LLC. If the investor was placing an offer on 1221 Sycamore, he may send it in with “Sycamore Group LLC”. If the offer is accepted, the investor immediately faxes in his LLC articles of organization and creates the company to match the Buyer on the purchase agreement.

From there the investor finds his end buyer and they agree that on closing day the end buyer will purchase the entire LLC from the original investor for the amount of the wholesale fee. From there, as the new owner of the LLC, the end buyer is empowered to close on the original transaction and purchase the property.

Pros: The upside to this method is that you workaround the extra costs in the form of transfer taxes and/or Flash Funding fees that come with the two Double-Close methods, and for those who are concerned about guarding their privacy, your name never goes on the deal.

Cons: The major obstacle to this one is that the end buyer has to pretty much be paying cash. Banks do not loan traditional mortgages (either to owner occupants or investors) in company names. You have to buy it in your own personal name to get a mortgage. Other concerns are that if you do this often enough you may attract the attention of state regulators who are confused as to why you start and sell 5-10 LLCs each month.

Armed with these four workarounds, investors nationwide are able to successfully wholesale flip REO foreclosures. None of these methods require the wholesaler to bring his or her own cash into play other than the initial earnest money deposit and none require a credit check. One of these methods will work for pretty much any situation you will come across when flipping bank owned homes.

Buying Bank Owned REO Properties Using Private Investors’ Money

Buying Bank Owned REO Properties Using Private Investors’ Money

Copyright © 2009, Lex Levinrad

Many real estate buyers are aware that there are fantastic bargains available in the real estate market. The huge amount of bank foreclosures has led to a tidal wave of bank owned REO properties which has flooded the market with low priced properties. Astute investors are taking advantage of this situation to scoop up houses at bargain basement prices.

If you are considering investing in bank owned properties then you will need to be a cash buyer. This means that you are required to show “proof of funds” which is usually a bank statement which shows that you have the cash available to purchase the house.

If you don’t have the cash available then you will need to borrow the money from someone that does. If you have a relative or friend with access to cash they might be willing to lend you money to purchase a property in exchange for you giving them a first mortgage on the property. They will effectively become the bank and you will be required to make a monthly payment to them.

There are professionals in the real estate business that make these kinds of loans to people that are not relatives. They are called hard money lenders. The only difference between a hard money lender and a private investor is the interest rate. Borrowing from Aunt Sallie might cost you 8% per year in interest. A typical hard money mortgage in today’s market would be 15% plus 3 points up front.

Why would anyone borrow money at such a high interest rate? Let’s look at an example. Assume that you could purchase a bank owned REO property for ,000 when the house has a true market value to a non cash buyer of ,000. Paying 15% interest on a ,000 loan amounts to a monthly payment of only 0.

Assume that you waited 90 days for seasoning of title and then sold the property to an FHA first time homebuyer for ,900. Assume that you paid a commission of 6% to the realtor and another 6% to pay for the buyers closing costs. You would still net ,000 from this transaction. After paying off the hard money lender the ,000 that you borrowed, you would still be left with a profit of ,000. Even if you held the house for six month before finding a buyer you would only have spent 0 per month in interest for 6 months. Your total interest cost would only have been ,000. This would leave you with a net profit of ,000.

Or expressed another way, using no money down (borrowing all of the money) you could potentially make a profit of ,000. How easy would it be to sell a house like this to a first time home buyer? The answer is it would be extremely easy. The buyers are putting down only ,000 (3 ½%) to buy a house with a monthly mortgage payment which is about the same as their monthly rent. You are paying all of their closing costs. And the government will give them an ,000 tax credit if they purchase before the end of 2009. It is a win/win for everyone. The bank gets to sell their property quickly to a cash buyer. The cash buyer gets to flip the property and make a quick profit and the end FHA buyer gets to own a home for the same monthly payment as rent.

The trick to the above transaction is to find an ,000 property that you can buy for ,000. This is the part that requires training, knowledge and experience. Finding deals like this is an art form and the people that find these deals are known as “bird dogs” or “property scouts”.

Many bird dogs sell their deals to cash investors for a small profit. This is known as wholesaling. For example a wholesaler might contract to purchase the above house for ,000 and then sell it for ,000 to another cash investor. This way, the wholesaler does not need to borrow money from a hard money lender. The wholesaler simply finds a deal, signs a contract to buy it and then flips the contract to a cash investor for a profit. This is known as “assigning a contract” and the profit that is paid to the wholesaler is known as an “assignment fee”.

Banks do not want wholesalers flipping contracts on bank owned properties. For this reason, banks do not allow assignable contracts. This means that a wholesaler cannot assign a bank owned property to another cash investor. The reality is that there are still ways that a property can be assigned. One way is to purchase the property in a Land Trust and then assign the beneficial interest in the land trust. Another way is to purchase the property in an LLC and then assign the membership interest in the LLC. However the problem with these methods is that the end buyer might not want to have a land trust or an LLC.

For this reason, the best way to sell a bank owned property to another cash investor is to have what is known as a double closing.  This means that the wholesaler essentially buys the house from the bank and then simultaneously on the same day sells it to another cash investor. The disadvantage is that the wholesaler will be paying double closing costs.

If a wholesaler has a signed contract and is wholesaling the deal to an end buyer, then if the wholesaler is short on cash they might need what is known as “transactional funding”. Transactional funding is perfect for bank owned properties and short sales that a wholesaler is flipping to an end buyer. Since banks do not allow assignable contracts the wholesaler is going to need to schedule a double closing with the end buyer. Double closings also known as simultaneous closings allow a wholesaler to schedule two back to back closings for the same property on the same day. The wholesaler will need to have a source of funds to pay for the first transaction. This is where transactional funding (also known as same day funds) is needed.

Our company offers transactional funding to all of our Private Mentoring Students. However our students need to schedule both closing with our title company in order for us to offer the transactional funding. We will only offer transactional funding if both closings are with our title company (Independence Title & Escrow).

If you are looking to flip a bank owned property then you will have two contracts and two closings. The first contract is between the bank (seller) and you (buyer). The second contract is between you (seller) and your end buyer (buyer). The end buyer is the person that will ultimately be the long term owner of the property.

Example:

A – Bank
B – You
C – End Buyer

Assume that you have a contract with the bank to purchase a bank owned property at ,000 (first contract). This is known as the A-B transaction.

You market this property to your cash buyers and you find a buyer at ,000. You sign a contract with this buyer with you being the seller and them being the buyer (second contract). This is known as the B-C transaction.

The difference between the two contracts (after deducting closing costs) is your profit which you will walk away with at the closing. Since there are two contracts there are two closings. This means you will pay double closing costs.

The transactional funding fee that we charge is 2% +5 with a minimum fee of ,250. For example if you were to request ,000 your fee would be 0+5=,295. We will only provide transactional funding if you use our title company (Independence Title) for both closings.

To learn more about transactional funding please visit  http://lexlevinrad.com/transaction_funding.html

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Short sale funding- what and how

If you are aware of the present real estate market, it is natural that you must also have heard of the term short sale funding and the innumerable other terms that are related to short sales. These include back to back closings, short sale flips, transactional funding etc. These have been the well discussed topics so as to how to legally and ethically flip short sales. A short sale is said to be when the person who has taken a mortgage, owes more than he actually owns and to add to his worries, he is even late on his mortgage. So now, if the seller wishes to sell the home and even the bank does not want to register a bad loan in its books, then the bank must compromise and buy the mortgaged property at a price that is actually less than what is owned on the home. However if the bank realizes that more money can be net from the short sale, that if the foreclosure was applied, and then they auction or sell the property as a bank owned property, they might settle for the less than what is owned offer. Now this kind of a situation is a win win situation for the bank and also the owner as the foreclosure is prevented and at the same time, there is no bad loan record in the books of the lender. Now these kinds of transactions have dominant in today’s real estate market.

With the increase in the popularity of short sales transactions the property owners and the bank are in a profitable position. The investors help the owners and also make profits while doing so. These transactions might take about 4 to 8 months but still are famous because they involve a low risk factor than the liability. In the short sale flips, transparency plays an important role so that the transaction is legal and ethical.

This can be achieved by the disclosure of the facts by the buyer. He must disclose that his intentions are to resell the property immediately to a third party for a profit. Most of the investors around the country also use an option contract.

It is for the lender to decide that he is or he is not accepting the offer so that he has a disclosure of what is being done through the verbiage. Therefore the investor must disclose the fact that he plans to sell the property immediately for a profit. This is the basis of the short sale funding.

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Funding and Closing a Short Sale

As a result of the mortgage meltdown, beginning with sub-prime mortgages and other lending practices and then leading to increased foreclosures and declining real estate values, mortgage guidelines have tightened.  The credit crunch has led to an increase in mortgage fraud and real estate scams; thus, resulting in even more lender restrictions.  Real Estate Investors and home buyers are noticing how difficult it is to acquire financing for most any real estate transaction, especially short sales and transactions that deal with distressed real estate.

There are many techniques that savvy real estate investors have been using to close REO and Short Sale transactions, including double closings, hard money financing, back-to-back closings and even the more complicated closing using a land trust.

In any event it is important that the real estate investor who is preparing the documents and structuring the closing work with qualified real estate professionals, attorneys and title companies to ensure they are doing things right.

Transactional lenders provide funding for the short sale investor; they may also provide the document prep and closing services to close the deal quickly and efficiently.  There are many transactional funding lenders on the internet who provide a variety of services and their fees also vary.  If you choose your transactional lender wisely then you should have no problem working a short sale transaction and getting around the roadblocks investors are facing.

Jodi Funke is a transactional lender with Cash for Short Sales.com, a company who specializes in one-day funding for the short sale.  Their nationwide team of professionals, attorneys and title companies can close back-to-back transactions in every state across the nation.  They take pride in their ethical, honest business practices, always working with the highest integrity.  Work with Jodi Funke and Funding and Seasoning issues will not be a problem; learn more at http://www.cashforshortsales.com

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New Developments In Short Sale Transactions (Transactional Funding, Part 1)

Whether you have done short sales in the past, or you have educated yourself about these transactions, you are probably fairly familiar with the basic function of the real estate deal. Essentially, the owner of the home gives a third party the right to the deed of the home and to negotiate with the bank for a discounted price on the home in exchange for avoiding a foreclosure. The owner of the home does not make any money on the deal, but is able to walk away with salvageable credit and no debt over their head in most cases.
In the past, real estate investors would do short sale transactions, and then sell the homes on the open market to make staggering profits. Some of my colleagues routinely made 20 to 50 thousand dollars on short sales in fairly short order once they obtained the deed to the property because people were   so eager to buy homes. However, since the real estate market took a dive, short sales have become much more common. At the same time, selling short sale properties has gotten more difficult because there are so many homes on the market. As a result, real estate investors have had to find new and innovative ways to flip short sales quickly.
There are a lot of ways to move short sale properties quickly, but before you get started with that, you need to understand some of the pitfalls that can arise thanks to more stringent lending requirements. If you do not factor in these new developments in lending practice and short sale transactions, you may end up with a property on your hands that you cannot get rid of, your short sale deal could simply fall through all together.
One of the biggest issues with short sales is lender’s requirement that the seller’s name be on the deed of the property. In a short sale, you are the seller, but if you are trying to arrange a quick flip, you may not have been planning to (or be able to) get conventional funding for the purchase of the property. Ideally, you would have your buyer bring in their funding, then purchase the home and you would get the difference. However, many lenders will not give your buyer funding unless you, the seller, are on the deed. This means that you also have to get funding for the short sale.
Sounds difficult? It certainly did complicate things for a while. However, there is a simple answer to this problem that will enable you to get the funding that you need (and your name briefly on the deed) so that you can finish your short sale flip. We’ll discuss this solution in the next lesson.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate investing. For more information please visit www.CoachingByPeter.com.

www.ShortSaleFundingForYou.com – I just started implementing REOs into my real estate investing business after having several other income streams on “auto-pilot” and with anythign new comes the implementation of systems, or the alternative, FAILURE.
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When Transactional Funding Alone Won’T Work (Transactional Funding, Part 3)

Now that you understand how transactional funding works, it probably has taken a pretty big load off your mind. Turns out, despite the new laws that require your name to be on the deed of a property that you sell, you can still get funding that is not a risk to you or the lender without having to have perfect credit and a huge down payment on the property.
However, there are times that transactional funding alone will not work to smooth the short sale flipping process. This occurs in a deal in which there is a mandatory â??seasoningâ? process, which requires a buyer to hold a property with their name on the deed for a period of days, weeks or months before they can sell. As you can see, this can seriously slow the flipping process, especially if you are dealing with a buyer who wants to move in immediately. Seasoning is another method that legislatively works to help prevent fraud, but many investors feel that it is also deliberately designed to make flipping difficult and target the real estate investing community. There are two ways to deal with seasoning:
1. Find a way to work with it
2. Only invest in areas that do not have seasoning laws
It appears that many governing bodies are starting to see the flaws in the seasoning process, and many lending and legislative bodies are taking steps to undo the regulations that require seasoning. However, at this point in time, it is still something that you must consider before you flip a short sale. 
If you are required to season a property before selling, then you will have to obtain some source of funding that will enable you to hold the property for the required period. This may involve credit checks, but many investors have found that private money lenders are a good source of funding in these cases, just as they are for construction loans and rehab deals. It is vitally important that you find out the seasoning laws and rules in an area before you set up a short sale deal. Otherwise, you may find that you have devoted a lot of time and energy to a lost cause if you are unable to season the deal as required.
There are some cases in which you can creatively work out a way to enable a buyer to basically take possession of the property during the seasoning process. However, these methods must be carefully checked out with an attorney to insure that you do not jeopardize your own funding or your buyerâ??s in the process. 
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate investing. For more information please visit www.CoachingByPeter.com.

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A Basic Introduction To Transactional Funding (Transactional Funding, Part 2)

In todayâ??s lending environment, most lenders will not lend money for a transaction unless the name of the owner of a property is on the deed to the property. Lenders say that this is because they are attempting to prevent lending and real estate fraud. They say that it helps them insure that the property is actually in a position to be sold. Many of my colleagues say that the real reason is far simpler: it is a way for the lenders to make some extra money. Regardless, itâ??s in the books at this time, and if you want to flip short sales, you must find a way to deal with it.
The best way to handle this new requirement is to obtain transactional funding. In short, you need â??one-day credit.â? Sound like a problem? Fortunately, itâ??s usually not. Hereâ??s how it works, and why your credit score does not even have to be involved:
When you set up a short sale deal, you have a homeowner who is walking away from the property, and you have a buyer who is ready to pay the purchase price (plus whatever fee you have added on for your services in setting up the deal) agreed upon by you and the lender. This is an ideal situation for many short term real estate investors because it does not require the investor in the middle (you) to actually buy the property. However, thanks to this new lending law, if your name is not on that deed, then in many cases your buyerâ??s lender will not fund the deal.
So you need the funding for the deal, but you do not actually need a loan that you are going to keep up for any length of time. This means that you do not really need to go through the extended and often problematic process of having your credit checked, your income verified, and all the other hoops that you have to jump through to get a traditional loan. You just need the funding for about 48 hours so that you can purchase the property, get your name on the deed, then finish the deal with your buyer. Transactional funding does this. Basically, your transactional funding source sends you the funds so that you can do the deal with the lender. You are charged a number of loan points for this service. Then, you do the deal with your buyer, and the lender gets their money back (plus their fee) and you walk away with the difference.
Sound a little like superfluous work? It is. But understanding this type of funding will be critical to your success if you decide to flip short sales in the current lending environment.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate investing. For more information please visit www.CoachingByPeter.com.

Understanding The Difference Between Transactional Funding And Simultaneous Closings (Transactional Funding, Part 4)

Historically, simultaneous closings were a great way for real estate investors, buyers and sellers to all get their â??piece of the pieâ? very quickly in a real estate flip. Simultaneous closings occur when a seller signs a contract selling the property to a real estate investor. This contract is put into the hands of a closing attorney. At the same time, the investor signs a contract selling the property to a third party buyer, contingent on that buyerâ??s ability to fund the transaction. This contract also goes to the closing attorney. At this point, the contracts are in order, and if they were released, the third party would own the property. However, this does not happen until the third party brings their funding to the table with the closing attorney, who takes the money in hand and closes the deal. In a matter of days, in many cases, the seller got their selling price, the real estate investor got their cut for the flip, and the buyer got the deed to the property.
At first, this might not really sound all that much different from the closings that happen today using transactional funding. However, there is one critical difference: in a simultaneous transaction, your name, as the real estate investor, never actually goes on the deed to the property. This can be advantageous for many reasons. It may help you circumvent seasoning requirements â?? if you are not required by the buyerâ??s lender to be on the deed. It can provide tax shelters for some people in some cases. It saves you money that you will otherwise have to spend on getting your own funding â?? however fast and temporary that funding may be. It also just plain speeds the process up.
Generally, real estate investors prefer simultaneous closings to those using transactional funding, if the option is available.  As a real estate investor, it is your responsibility to determine whether or not you need transactional funding or whether a simultaneous closing may be an option. In nearly all cases, if you have the option of doing the latter, it will save you time and money. However, neglect to do your due diligence, and your entire deal could fall through if you are working in an area or with a lender that requires that your name be on that deed before the deal is completed.
As a buyer, this is also an important distinction to understand. Your funding options will likely be limited if the seller is only willing to do a simultaneous closing, and does not offer or have access to transactional funding. You can use this distinction to help you determine up front whether or not you think a deal will work for you.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate investing. For more information please visit www.CoachingByPeter.com.

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Transactional Funding For Short Sale Deals!

Transactional funding- How To Get More Short Sales Deals Done Now!

Transactional funding has become a huge tool in a real estate investors tool box!

With the changes in traditional lending it has become more difficult to get financing for your short sale and real estate deals. The new requirements by banks has made simultaneous closing, quick flicks and dry closings  a little more tricky.

Enter Transactional Funding!

Transactional funding gives the real estate investor a short term loan which allows he/she to purchase a property from a distressed home owner and then turn right around and sell the property to the end buyer.  This is knows as  Simultaneous closings or back to back closing.

Back to back closings is a great strategy to use when buying a distressed property and when you already have an end buyer who is ready to buy the property from you.

Transactional funding is really just a one day loan that enables you to take simultaneous closings safely along with the backing money that comes with the loan.

This is a great way to buy an investment property without any of your own money!

Now there are fees associated but if there is enough profit in your short sale deal you should make plenty of money on the deal to cover your fees.  This is really a small price to play when you can easily make thousands of dollars on one real estate short sale deal.

And again, since you are using the one day bridge loan from the bank you do not have to use any of your own money. You just want to make sure you end buyer is approved and has the funds to buy your short sale deal once you buy it from the distressed home owner.

Transactional Funding is the perfect way to get the money you need to grow your real estate and short sale business.

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Transactional funding- an overview

With the change in the demands of the states the role of transactional funding has become important. The needs and the requirements of the federals officials and of the state have increased and this has made simultaneous closing, quick flicks and dry closings more difficult with time. Simultaneous closings are beneficial as in such closings you can earn without using your own money as the lot that you have bought from some buyer is immediately paid for by the funds from the buyer. Therefore it is also known as a quick flip as you can make quick money. Hence these are one of the most profitable schemes in the industry in the past.

These transactions now though are not illegal per se, but still they are scrutinized more than they have been in the past. This clearly indicated that most of the title companies today want to avoid the hassle of state and federal assessments and investigations, that happen to consume a lot of their valuable time and also calls for out of the deal work which can be omitted. Therefore more and more people are confused about what they can do when they face the problem of simultaneous closing.

This is where the role of transactional funding begins. This is the service where the investors are provided with a bridge loan that enables you to take simultaneous closings safely along with the backing money that comes with the loan. Here the break due to the state and federal scrutinizing agents is removed since now there are no dry transactions or any such deals where there is a money transfer from the buyer to you. Now you are doing the valid closings which make way for the opportunity to make money out of opportunities. With such programs the investor is actually utilizing the funds of the transactional funding company.

Your deals determine if you should use the name of the transactional funding  company name or the name of your own company. Some fee is always involved in these services and for the use of the loans. But as there is no money involved where you have to put the money on the table, the benefits that these services give in the end compensate well for the fees. Therefore now whenever now, you encounter an end buyer who is interested in purchasing a specific type of property, and you know about the property and have a complete control over it, you can comfortable use the services of transactional funding  and go and make the deal through.

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