Real estate is a very lucrative industry and taking the time to find the right option and the right lending option can make a huge difference. Private transactional lenders are a great thing, they can help you realize all your real estate dreams.
What is a Private Transactional Lender?
Transactional lending is a process that involves properties and real estate. A transactional loan is one that is very short term, it is generally one that is going to be paid back in a few days at the conclusion of the transaction in question. This type of loan is going to be taken out to help fund transactions, for example, if a buyer finds a property that they want to purchase then sell again for a profit, they will enter into a contract with the owner, they will then find another buyer and enter into a contract with that person as well.
The first buyer will then take out a transactional loan to help fund the transaction and to buy the property from the original owner. The property will then transfer to the first buyer and the transactional loan will be in place. The first buyer will then sell to the second buyer and the transactional loan will often be paid off with the proceeds from that sale. This type of loan is based entirely on the transaction, hence the name.
This is a great type of loan that does help the buyer to get funds quickly and to have that money on hand to finish transactions and make real estate moves quickly without having to sit and wait for a bank to approve the property, to approve the loan and so on. Lenders are a great thing, they are going to help you to get your money when you need it.