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Deepak Advani, A Boutique Real Estate Company (Melange Real Estate Inc)

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Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

      I believe that this is what we used to call "bridge loans".   Investors who assign contracts, do fix and flips, etc.  They need short-term loan money to cover the purchase, before they sell the assignment or flip the fixed-up house.  

    Loan pros John MeussnerGene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi ,  George Souto or Rob Spinosa may come along and give a more detailed answer.

Jun 03, 2017 03:32 PM
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Short term financing like a bridge loan, common with wholesalers and flippers.

Jun 03, 2017 04:33 PM
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Deepak, I need a bit more definition. I work with investors who sometimes need non-confirming conventional loans.

Jun 03, 2017 02:26 PM
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Frank Antonelli
Broad Arrow Capital - Easton, MD
Preferred Lending Partner SBA Loans

Transactional Funding is a broad title to cover a wide range of topics in real estate funding. Essentially, it means a loan to cover a certain transaction. It usually refers to a short term loan to buy and flip a house or an advance on future moneys such as anticpated sales or purchase orders.

Jun 04, 2017 07:57 AM
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Thomas J. Nelson, REALTOR ® CRS,ABR,PSA,RCS-D, ePRO
Big Block Realty 858.232.8722 - La Jolla, CA
Serving Coastal San Diego, Veteran's & Seniors

Those are long gone around here.

Jun 04, 2017 01:07 AM
Rainmaker
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Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Thank you once again Fred Griffin 

Jun 03, 2017 09:56 PM
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Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Deepak Advani - you mean a Bridge Loan?

Jun 03, 2017 09:50 PM
Rainmaker
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Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

I hadn't heard this term - but bridge loan I am familiar with.  I had an investor do this once with one of my other investor clients - 6 month loan with a balloon payment so my buyer could get the house that he wanted when he couldn't get the financing quite yet.  He knew he could 6 months down the road so the 1st investor financed him, 2nd investor paid him off when he refinanced into a traditional loan.  Worked out great for both of them. -Kasey

Jun 03, 2017 09:21 PM
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Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

It works a lot like hard money financing. Lots of points, higher interest rate and short term payback is part of the structure.

Jun 03, 2017 05:58 PM
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Deepak,

Fred Griffin has tagged all the lending experts, and I am looking forward to their answers.  Thank you for asking this.  A

Jun 03, 2017 05:25 PM
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I work with a lot of non traditional loans, but have not heard one called this. I have heard something similar as in quick money to close or like mentioned, a bridge loan whiel something else needs to be sold and closed. 

Jun 03, 2017 03:55 PM
Rainmaker
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Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

bridge loans are tough to find today.... lending institutions rarely give them...

Jun 04, 2017 07:13 AM
Rainmaker
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Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Tranactional Funding is a means of real estate investing, but on the banking side. (these folks know where the real money is)  Typically this is a loan that exists for a few hours or a day, and not longer.

It is NOT purposed to allow flipping.

Most often used in B2B where same day closing or next day closing is needed. This is an excellent way to put those Roth 401Ks to work.

The problem is VOLUME. To make real money the Transactional Funding source must be utilized multiple times a month. The interest earned can be impressive.

Steps to take:

Hire an attorney

Create LLC

Fund with self-managed 401.

Identify title company to use. (usually owned by attorney above)

Hire a marketing expert in the real estate investor community.

 

Jun 04, 2017 06:43 AM
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

I think you are referring to a bridge loan.  

Jun 04, 2017 06:39 AM
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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I wish I knew what you were talking about.

Jun 04, 2017 04:23 AM
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Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

As Bob Crane said - a bridge loan is all I can think of too.

Jun 03, 2017 10:24 PM
Rainmaker
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John Pusa
Glendale, CA

Bob Crane  and Fred Griffin have good answers.

Jun 03, 2017 09:11 PM
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Eva B. Liland Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service 661-714-1643

Never heard that term before.

Jun 03, 2017 07:44 PM
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Never heard that term but I agree with Bob.

Jun 03, 2017 06:29 PM
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Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

Short term financing like a bridge loan, common with wholesalers and flippers.

Many people want in on this market High Return Lending

May 11, 2018 09:45 AM
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I do not know.

Jun 05, 2017 03:45 AM
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I'll defer to the lenders here.  Never heard of this.

Jun 04, 2017 08:09 PM
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Deepak Advani
Melange Real Estate Inc - Tampa, FL
A Boutique Real Estate Company

Thanks for the feedback. Basically its a Short term Loan Most often used in Back 2Back  where same day closing or next day closing is needed.  Investors are using their cash / retirement plans etc to provide funding.

I will be exploring more into this as our investir group is seriously interested in this Investment vehicle.

Jun 04, 2017 05:43 PM
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Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I think Frank Antonelli gave you the right answer.

Jun 04, 2017 12:45 PM
Rainmaker
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Roy Kelley
Retired - Gaithersburg, MD

I am not familiar with this term. There are many ways to fund investors.

Jun 04, 2017 09:12 AM
Rainmaker
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

This is way above my cruising speed....

Jun 04, 2017 06:44 AM
Rainmaker
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Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Parked and reading...

Jun 04, 2017 06:35 AM
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Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Good read

Jun 04, 2017 05:42 AM
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I have no clue.

Jun 04, 2017 05:25 AM
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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

interesting answers

Jun 03, 2017 09:23 PM