The Differences Between Transactional Funding & Hard Money Loans
If you’re a wholesaler trying to better understand the real estate industry and your options, you’re at the right place. We understand how frustrating it can be to have issues when closing a deal. The world of real estate can be intimidating. Still, with the proper knowledge, you can make informed decisions that will benefit your future self.
It’s essential to understand the difference between transactional funding and hard money loans when looking for financing options in real estate. This blog post will cover basic definitions and the main differences between these two methods. Keep reading!
Understanding Transactional Funding
Transactional funding is a convenient and flexible loan solution for wholesalers.. It provides short-term financing that allows you to buy and sell real estate same day keeping both transactions separate from one another including your buyer/seller. It requires full repayment by on your sale (2nd) transaction.. Using this type of loan can be especially beneficial if you have the need to double closing your wholesale transaction.
Do you need to acquire capital quickly but don’t have the capital in the bank? Then transactional funding is the answer.
The Differences Between Hard Money Loans & Transactional Funding
Structure: Hard money loans are more suited for flippers or buy and hold investors, but can be used for wholesalers. The downfall using a hard money lender is that they will charge multiple points of origination and interest treating your 1 day loan as if it were multi month short term loan Whereas transactional funding doesn’t have complicated fee structures like hard money loans, and wholesalers can benefit from a 1% origination fee, some companies offer. This makes transactional funding a more attractive option if you need to secure funding for a double closing.
Where To Use Them: No matter the size or value of a property, hard money loans can provide much-needed capital for any real estate endeavor – even commercial properties. Transactional funding can also be used for any property. Still, it’s primarily used to acquire and close residential properties quickly.
Repayment: Hard money loans are usually secured by the borrower’s real estate collateral and require monthly payments with interest. Transactional funding requires full repayment within an agreed-upon period.
Get Transactional Funding For Wholesalers With Our Assistance
At Wholesalers Transactional Funding, we know you want to be a successful wholesaler. You need to understand the real estate industry and its financing options to achieve that goal. Whether you’re a beginner or an experienced wholesaler, we have the perfect transactional funding for you.
Our transactional funding for wholesalers will open the door to success and help you get the capital you need quickly and easily. Our founder, Jesse LeBlanc, has vast experience in the real estate industry because he used to operate a wholesaling business. Don’t risk your hard-earned money when you can get the help of an expert! Get in touch with us today for more information.