Hello To All:
I wanted to clear up some confusion that seems to come through in peoples mindsets about transactional funding.
First, it is not a loan, it is deal funding, not deal financing. There is a huge difference.
In order for this type of deal funding to work, you must have a contract with the seller, called the A-B and a contract with the end buyer, called the B-C.
You must also have the closing agent provide a escrow receipt as proof of the end buyers funds being held for the deal.
You can use the funds for residential, commercial, short sales, REO's, HUD Deals, etc.
I talk to investors everyday about transactional funding and many think it's a loan and when I inform them it is not as such, they become very interested.
Just wanted to clear up a few things.