Funding Real Estate Deals
Funding Real Estate Deals in Hallandale Beach
Extended Transactional Funding Near Me
Funding a double closing has one of two ways that they are done in todays environment.
In the first case the person or entity purchasing the property brings funds to purchase the property and the Investore / wholeseller takes those funds and uses them to fund the closing of the first deal at the same time of the other closing. Florida still allows this process while other states have discontinued this process. So, investors and wholesellers can use their own money or they can locate transactional funding.
The other process is called transactional funding where the lender provides the full amount of the transaction needed to complete the first deal. This allows the investor to be able to complete the second transaction without having to use any of it's own capital. The Transactional Funding Lender simply charges a fee which is equal to a percentage of the transaction. The fees however, are generally more than the normal back rates. Which if you are an investor you are generally not surprised.
Different from hard money lenders, the transactional funding lenders regularly require a fast turnaround time in order to get their money back. This means that a double closing must take place with in 1 to 2 days and be completed.
What's In the News
Rand Merchant Bank (RMB), the corporate and investment banking arm of FirstRand pointed to a solid performance in its full-year financials, highlighting an 18% growth in core lending.
Pre-tax profit was up 17% from June 2021, and the ROE improved to 22.1% – up from 18.7% at June 2021, it said on Thursday (15 September).
“Our results showed a continued improvement in the credit quality of RMB’s core lending portfolio. We advanced R126 billion in new loans and refinancings across South Africa and broader Africa,” said RMB CEO James Formby.
The increase in client demand is a sign of improving confidence, especially as much of the funding is earmarked for South African investment, the bank said. “It is part of the reason that South Africa, and many of its businesses, are looking more attractive to investors again.”