Transactional Funding or One Day Funding (also called Flash Funding)

Transactional funding is a term describing what is essentially one-day funding for back to back transactions.  Sometimes called simultaneous closings.

Here is how it works:

You are buying from Seller "A", frequently a homeowner, and you have negotiated an approved short sale with the seller's lender, or you have negotiated only with the seller if it is not a short sale.

You are "B"

You are immediately, the same day, sometimes within minutes, selling to an End Buyer "C". 

In a previous lifetime, you could use End Buyer "C's" financing to purchase from Seller "A" if both transactions occurred at the same in the same closing office.  Now title companies are refusing to write title insurance if the funding for You "B" to buy from Seller "A" cannot be verified to be in place without using the End Buyer "C's" funds.  To get the transaction funded without paying the regular hard money points and interest, transactional funding is used.

Now, you use transactional funding to purchase the property from Seller "A", and then the End Buyer "C", on the same day, purchases the property from you.

You must do the following:

0. Disclose in writing to both the Seller "A" and the End Buyer "C" that you are purchasing this property to resell immediately at a profit.  If you have negotiated a short sale, you must also disclose this to the seller's lender, which is the lender who has approved the short sale.
0. You must use our attorney for the closings.
0. Your End Buyer "C" must use a lender that does not have title seasoning requirements.  FHA does not qualify.  You should find a bank or credit union near your property that does not have seasoning requirements, and recommend them to your buyer.  Generally speaking, small local banks and credit unions are the most like candidates.
0. Currently, we are providing one day funding for properties in Massachusetts, and New Hampshire.
0. Fees are two points of total amount advanced.  Total amount advanced includes 100% of purchase (A to B) plus closing costs
0. Max amounts up to 1 million