As a company, we have knowledge of completing transactions involving hard money loans, extended transactional funding, and transactional funding. To effectively conclude their deals, private lenders and investors rely on our knowledge in this field. We also suggest our network of private lenders to investors searching for funding for their ventures.

Transactional Funding: A short-term loan used to finance a back-to-back closing transaction is referred to as transactional funding. A back-to-back closing is two closings planned to occur simultaneously: the purchase and subsequent sale of a property. In these deals, real estate that is undervalued or in trouble (such as short sales, REOs, estate properties, etc.) is often purchased with the intention of reselling it for a profit in the near future (typically less than 48 hours). Verifying your income or doing a credit check while using transactional finance is unnecessary. The primary prerequisite lenders set forth is that the investor has a final buyer prepared to acquire the property as soon as the first deal is closed (referred to as the A-B transaction or closing). Suppose the ultimate buyer needs to be put in place and prepared to finish the second transaction. In that case, transactional finance providers will likely decline to fund the deal (referred to as the B-C transaction or closing). The investor won’t need to bring any cash to closing because most transactional lenders will pay all expenses related to the A-B closure, and their fees will be deducted from the investor’s earnings.

Extended transactional funding (ETF): An investor can get transactional finance through ETF, another form of loan, to purchase Seller A’s property and subsequently sell it to a C-end buyer within a predetermined time frame. The B-C closing does not happen right after the A-B closing, which is the primary distinction between ETF and conventional transactional funding. The B-C closing, however, can occur up to 180 days after the A-B closing. The B-C closing, however, can happen up to 180 days after the A-B closing. This finance is suitable for deals in which there must be a holding period before ownership is given to the final purchaser.

Hard Money Loan: A hard money loan may be the best option for an investor who needs a loan for a more extended period of time, such as to repair a property, or who does not already have a buyer in mind. Hard money loans are asset-based loans with extremely high-interest rates, and the investor can generally get up to 60% or 70% LTV (Loan-to-Value). Investors who don’t qualify for conventional loans find these loans intriguing.

As a company, we have expertise in concluding deals, including transactional finance, ETFs, and hard money loans. We also have extensive understanding in this area.

The CEO and founder of Connect Invest, a platform that offers different real estate investment possibilities, Todd Parrott stated that real estate investment is considerably stable with every year returns, and is usually regarded as an investment that creates a hedge over inflation.