Transactional funding for real estate investors

A transactional loan exists for one transaction and it is usually outstanding for less than 24 hours. That is the whole thing.

Because the money is out for hours instead of months, it doesn't get priced like a mortgage. There's no interest rate. There's a fee on the amount funded, and you know that number before you commit.

And because we're underwriting the transaction rather than you, there's no credit check. The deal either works on paper or it doesn't.

Almost every deal we fund is one of three. Most people arrive knowing they need money and not much else, which is fine.

Say you've got a property under contract at $500,000 and an end buyer lined up at $550,000. That's $50,000 of spread, and the only thing in the way is that you have to own the property before you can sell it.

So we fund the $500,000. You close on the buy, then you close on the sell inside the same day. The $550,000 from your end buyer pays us back.

Our fee on that deal at 1.5% is $7,500, and it comes out of the spread at closing. You never bring money to the table.

You keep $42,500. Without the funding you keep nothing, because there was no way to close in the first place.

We publish our rates. Here is where each product starts.

People mix these up constantly, and the difference decides whether your deal works.

Hard money is a real loan against a property. It runs for months, it carries an interest rate and usually points, and the lender cares about the asset, the rehab budget, and increasingly about you.

Transactional funding is out for hours. There is no interest rate, no rehab draw schedule, and no appraisal cycle to sit through. There is a fee on the amount funded and a same-day payoff.

So if you're holding the property, doing work to it, and selling in four months, you need hard money. If your exit is already under contract and you just need to own the thing long enough to sell it, this is the cheaper way to do it.

Here's the one that comes up most.

Somebody tells us they have a double close. We ask when the second closing is. They say two weeks.

That isn't a double close. If we fund the buy and the sell doesn't happen for two weeks, we didn't fund a transaction. We bought a house.

A double close happens in less than 24 hours. Both closings, same day, ideally at the same title company. If your two closings are weeks apart you need a different product, and that conversation should happen before you go under contract instead of after.

Send the contract. Everything starts there.

We verify what you told us against what the contract says. The amount, the address, the names, the dates. When those match, you move fast.

We ask for 48 hours of notice. We've also funded in five minutes when a file arrived clean and a closing was about to fall apart.

Whichever product you end up needing, these hold.