Are you an aspiring real estate investor who wants an easier and quicker way to get in the game and turn a profit?
If so, you’re in luck because I’m bringing you the fastest path to your first real estate profit, with way less risk and capital from you!
If that sounds like exactly what you’re looking for (or you’re just intrigued by this incredible investment opportunity) keep reading.
I’m opening the door for you into real estate investment and profit—all you have to do is step inside.
Most people are aware of the huge potential of real estate investing—the longevity, the size of the profits, the ability to have multiple income streams…it all sounds fantastic, so why do people hesitate?
Well in many cases, aspiring real estate investors like yourself don’t know how to get in or where to get started.
That’s completely understandable, and I’m here to make your jump into real estate investing as smooth, easy, and profitable as possible.
Our secret tool is something you may or may not have heard of before: transactional funding.
We’ll get into all the nitty-gritty details and I promise you that by the end of this article you will have a full understanding of transactional funding and know exactly how to use it.
As the name suggests, transactional funding is a type of financing that facilitates short-term real estate transactions.
Transactional funding is the perfect option for real estate wholesalers or investors who are quickly flipping a property.
I’m sure you’ve seen the term “flipping” before in the world of real estate investing, but for our purposes, transactional funding is used for people buying a property and immediately “flipping” it by selling it to someone else- no renovations, just a very quick turn-around.
To flip a property without any renovations or changing anything, you need to be very familiar with your target audience and know for certain that you’ll be able to immediately sell the property for more than you purchased it for.
You might decide to do minimal cosmetic changes to raise the value, but overall the property will only be in your hands for a day or two.
Real estate wholesaling works similarly, but there are no changes to the property, and it’s barely in your hands, if at all.
Real estate wholesalers enter into a contract with someone selling their home.
The wholesaler then markets the property to potential buyers, and eventually selects a buyer to enter into a contract for the property.
The wholesaler’s profit comes from the difference between their contract with the seller, and their contract with the buyer.
This may sound confusing, but it happens far more frequently than you probably realize.
If you’re wondering why the seller in either case wouldn’t simply try to sell the property for more money, real estate wholesalers do the work of finding a buyer willing to pay more, which the seller may not be equipped to do or have the time/ patience for.
While these may sound like excellent opportunities for making a big payday as quickly as possible, you’re probably still wondering where you’re supposed to get the capital for the property, since you’re entering into a contract.
That’s where transactional funding comes into play.
As I said earlier, transactional funding is all about financing short-term real estate transactions.
Transactional lenders will give the necessary capital to flippers and real estate wholesalers, knowing that the profit will be made in between 1 to 3 days, and they’ll have their money back.
As an example, let’s say you’re a real estate wholesaler interested in buying a home on the market for $550,000.
You already have a buyer in mind who’s willing to purchase the property for $650,000, but you don’t have $550,000 lying around to scoop up the property and then sell it.
A transactional lender will give you the $550,000 needed to purchase the property, and as soon as you’ve sold it to the buyer for $650,000, you pay back the loan and pocket the profit.
The benefit of transactional funding is that they’ll often give you all the capital needed, and there’s far less information required—they don’t ask for a credit check, or leverage, or a history of your experience and finances.
The terms for transactional funding are less strict because of the quick turnaround—the lenders know that they’ll be getting their money back in a day or two.
The most important attribute for carrying this out successfully is really knowing the real estate market where you’re looking.
Also being a strong negotiator is helpful, since you’re very quickly trying to purchase a property for significantly less than you plan on selling it a few days later.
In transactional funding, the name of the game is speed—you won’t believe how quickly you can make your biggest paydays of all time.