How to Use Transactional Funding to Flip More Houses By Duane Ortega

by Joe Thomas on March 30, 2012

The last two months have seen an incredible rise in the amount of foreclosures being filed and the number of actual repossessions being followed through on. Add to this 2 million more foreclosures expected in 2012 and the real problem for most real estate investors is not a lack of discounted homes available but how to finance them.

It is no secret that mortgage financing has become incredibly tough to get these days. Besides a slew of new regulations banks are still afraid to lend and are being more cautious than ever about the loans they take on. They want zero risks. Even though there has been a recent spike in activity among subprime securities new rules make it virtually impossible for true subprime lending or exotic mortgages to make a big come back anytime soon. So where should real estate investors be turn for funding for their flips?

Sadly ‘hard money’ lenders are no longer anywhere near as easy to work with as they once were. Besides tons of equity in a property they now want to check credit, income, assets and require investors to have a proven track record before they will lend to them. Then they still want to charge ridiculously high double digit rates and points.

Fortunately a new option has emerged. Transactional funding has been created as the perfect alternative for investors flipping houses. It means no more jumping through hoops and far faster funding of deals for shorter cash cycles.

What are the advantages of using transactional funding?

• No appraisal required
• No income verification
• No asset verification
• No employment needed
• Fast closings
• No pre-payment penalties
• Less paper work

Think it sounds too good to be true? What’s the catch?

Thousands of savvy real estate investors are using this type of flash funding to finance their deals every week. Though of course there is one catch. That is investors must also have an end buyer lined up who is qualified for a loan or has the cash to complete the transaction.

This really isn’t that difficult at all, especially as smart investors know they should have an exit strategy planned before they buy any property anyway.

These buyers can range from those looking for a new residence or second home to buy and hold investors who will rehab and rent them out. With a little regular networking and a good Internet marketing campaign for driving buyers to your opt-in list you too should be able to build a good sized list of potential buyers a lot faster than you think.

Duane Ortega has been enabling real estate investors to increase their volume and make real profits from real estate in both good times and bad over the last 10 years with no hassle transactional funding through

{ 1 comment… read it below or add one }

Keith Mace March 31, 2012 at 7:45 am

Thanks for the funding source. You’re the man!

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