Alternative lending for real estate has been around for decades and it utilized by people and corporations that get loans from non traditional methods. There are some great benefits for alternative lending, this includes: flexible options and providing more people the opportunity to qualify for a mortgage.

Alternative lenders work with title companies that are providing Transactional funding to real estate investors that are providing double closing's for real estate. To explain what a double closing, the buyers and sellers in the transaction are designated by the letters “A” (original property owner and seller), the investor “B” (both a buyer and seller), and the final buyer “C” who will be the final owner of the property.

It is also called Same Day Real Estate Closing or Double Closing because the actual time of this real estate transactions should happen on the same day. Depending on which state the property that is being sold is located in, different title companies may have different requirements to handle a flip. Once all the money and docs are in place for both transactions, they finish the transactional funder will fund the transactions to the title company handling the A to B transaction. Once the funds are received both transactions should close simultaneously and the transactional funder is paid back and the investor makes their profit.

How Much Is A Down Payment On A House?

The amount you should put down when you’re buying a home is a personal decision that depends on what’s best for your finances. You have to put down some minimum amount to qualify for a mortgage. For a conventional mortgage, that amount is usually 3% of the home’s price.

You might want to put down more than that because you have to pay interest to borrow money. The more you borrow, the more you pay. At the same time, you don’t want your down payment to be so large that it leaves you with too little savings. Most homebuyers also want enough cash after closing to do things like buy new furniture or paint the walls.