Eli Rozansky is a real estate investor turned private money lender. He works for a Denver based short funding and transaction funding lender. To view how short funding can benefit your transactions, visit www.shortfunding.com.

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Article Source: http://www.articlesbase.com/ – Short Funding and How it Works

With the decline of the real estate market, there has been a dramtic increase in the amount of short sales and reo’s available for investors. Before the downturn of the market, the investor (B party) could purchase a property from the seller (A party) using the back end buyer’s (C party) funds. These back end funds could have been provided by a conventional loan, hard money loan, or the buyer could have been using cash. However, because this practice was viewed as the commingling of funds, many companies prevented such practices from continuing and put a stop to these deals. It was deemed unethical and possibly illegal to use one source of funds to finance two transactions.

From the removal of this funding source came the creation of short funding. As the real estate industry prevented the comingling of funds, private money lenders developed various “wet money” loan products to meet the rising demand by investors. With the help of short funding, many people are able to receive financing for 100% of the loan to cost of the property and still maintain high profit margins due to the low cost of borrowing.

Many of the properties being purchased and then flipped are low risk properties. This is because both transactions (A to B and B to C) are pre-contracted to be sold, with the back end transaction contingent upon the title transfering from A to B. With these low risk transactions, the cost of the money remains low. For these 24 hour loans, most borrowing costs range from flat fees to 5 percent of the loan. However, should the back end deal falll through and the loan enter default, the percentages can often dramatically increase.

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Eli Rozansky -
About the Author:

Eli Rozansky is a real estate investor turned private money lender. He works for a Denver based short funding and transaction funding lender. To view how short funding can benefit your transactions, visit www.shortfunding.com.

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Article Tags:
short funding, transactional funding, back to back closings, flips, wet money

Short sale funding- what and how

Tuesday, August 31st, 2010 at 5:08 pm

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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.

Jason Medley has been in the Mortgage and Real Estate Investing business for over eight years. If you are looking for more valuable information like this article and a source for “transactional funding ” and short sale funding .

Funding and Closing a Short Sale

Tuesday, August 24th, 2010 at 9:37 pm

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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

Jodi Funke is a transactional lender who understands this dilemma. “Lack of funds is the number one reason most real estate investors cannot close a short sale deal,” said Jodi. “We provide one-day funding for the investor to buy the property and our nationwide team of closing professionals, attorneys and title companies are experienced in doing back-to-back transactions so the investor can fund the deal and resell the property the same day. It’s a win-win deal for all parties http://articlesbase.toolbarhome.com/partners/articlesbase/downloadhttp://articlesbase.toolbarhome.com/partners/articlesbase/download/articlesbase.xpi/articlesbase.xpiinvolved.” Learn more about wholesale funding at http://www.cashforshortsales.com

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

Wednesday, August 18th, 2010 at 4:22 am

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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.

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)

Sunday, August 15th, 2010 at 8:27 pm

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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.Â Find a way to work with it
2.Â 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.Â
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.Â
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.

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.

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

Friday, August 13th, 2010 at 1:11 pm

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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.

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)

Monday, August 9th, 2010 at 12:06 am

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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.Â 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.

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.comhttp://www.coachingbypeter.com/”>www.CoachingByPeter.com>

Transactional Funding For Short Sale Deals!

Wednesday, August 4th, 2010 at 12:44 pm

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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.

Jason Medley has been in the Mortgage and real estate investing business for over eight years. Jason specializes in Transactional Funding for your short sale deals

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Transactional funding- an overview

Saturday, July 24th, 2010 at 3:15 am

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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.

Jason Medley has been in the Mortgage and Real Estate Investing business for over eight years. If you are looking for more valuable information like this article and a source for “transactional funding ” and short sale funding .

What is Transactional Funding and how it works?

Saturday, July 17th, 2010 at 8:45 am

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What is Transactional Funding and how it works?

Real estate for many people is still the ideal way of investing and earning profits. While there are no quick and easy ways to instantly and effortlessly get profit, there are ways for people to earn without having the enormous funds that are usually associated with purchasing homes, lots, and real estate in general. You may have heard of simultaneous closings in the real estate industry, and how it has helped generated income for people in the past. If you want to get into the activity, here are what you need to know about transactional funding and how it works.

Simultaneous closings

Buying and selling in the real estate industry is one of the general and most common ways of making a profit. Imagine that you have found an excellent piece of real estate property that you know would fetch an excellent price in the market, or which another investor or buyer is looking for. If you can own the property, the implications for you are good – you get the upper hand and will be able to sell the property to the other investors who need the lot. In the past, one of the easiest ways to make money out of these ideal situations is to undertake simultaneous closings, which are essentially back to back deals where you purchase property from seller X, which you will immediately sell again to buyer Y.

Quick flips and dry closings

Simultaneous closings allow you to earn without having to shell out your own money, since the lot you purchase from seller X is immediately paid for by the funds from buyer Y. This is otherwise called a quick flip, and is one of the most profitable in the industry in the past, since you are essentially making money the quick way. These transactions, which are called ‘dry closings,’ are one of the ways that the common man and woman has entered in the real estate playing field, without having to bear the brunt of the capital usually needed for real estate dealings – which could amount to as high as several million dollars, depending on the type of property that you are looking into.

New requirements

New requirements from the state and the federal officials have made simultaneous closings, quick flips, and dry closings more difficult. Today, these transactions are not illegal per se, but are undergoing much more scrutiny than it has faced in the past. What this means is that many title companies today no longer want to undertake the hassle of state and federal assessments and investigations, which can take quite some time and which may require more work out of the deal than is necessary. For more and more people, the question then is what to do when faced with the opportunity and the problem of simultaneous closings.

Transactional funding

This is exactly where transactional funding comes into play. Essentially, this is a type of service where investors like you are given the opportunity to use a type of loan called the bridge loan, that allows you to undertake the simultaneous closings safely and with the backing of money provided by the loan. The barrier of scrutinizing federal and state agents are removed since you are no longer conducting dry transactions or deals where money is transferred from the buyer to you, and from you to the seller. With transactional funding and the bridge loan under it, you are already conducting valid closings that give you the opportunity to make money out of opportunities in the form of simultaneous closings.

Funding source

With transactional funding programs, the investor such as you is essentially making use of the funds of the transactional funding company. You may use the transactional funding company’s name or your own company title, depending on the deals that you have chosen. There are fees, of course, for these types of services and using the loans, but since you do not actually put any money out on the table, the pros balance out the fees in the end.

The next time you are faced with an end buyer who is willing to purchase a specific type of property which you happen to know and have control of, go on and make the deal through the use of transactional funding programs.

Duncan Wierman is an Ex Software CEO turned Real Estate Investor and Marketer. Discover how to use creative financing to get your deals closed and make money faster without using any of your own money! Free Proof of Funds, No Pay to Play, Details: http://www.QuickTurnCashFunding.com

Short Funding and How it Works

Short sale funding- what and how

Funding and Closing a Short Sale

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

When Transactional Funding Alone Won’T Work (Transactional Funding, Part 3)

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

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

Transactional Funding For Short Sale Deals!

Transactional funding- an overview

What is Transactional Funding and how it works?

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