Closing a real-estate deal when you don’t have proper funding is impossible. But sometimes, investors also don’t want to put their own money on the table. In such a situation, they look for risk-free options, and that’s where transactional funding comes in. It is the ideal solution for back-to-back closings as it is a short-term funding. It also has plenty of benefits that make it the best solution in situations where people require quick funding.
Straightforward Paperwork
One of the scariest things about conventional loans is the complex paperwork and the requirements. But when it comes to transactional funding, the paperwork is pretty simple. There are no complex conditions in it for the borrower to understand. There are also no strict requirements such as a good credit score or high income. As long as the applicant can show a proof of funds letter from their buyer, they will be able to get approval for the transactional funding and close the deal.
No Risk Involved
The biggest benefit of this type of funding is that there’s no risk involved. Investors don’t have to bring their money to the table as transactional funding will be covering 100% of the loan amount. Investors can make a profit easily with transactional funding without putting their own money at risk.
Quick Solution
Conventional loans take a long time to get approved. But when people need a quick solution, they can turn to transactional funding as there are no approval delays with it. Investors can get transactional funding on time to close their deal easily.
To know more information contact DFW Hard Money.
