I don’t have my own money to purchase homes then resell them to end buyers. Someone offered to help me by using their transactional funding service. I am not familiar with how transactional funding works. What are my risks getting involved with this funding service? Here is the transactional funding service I am referring to: http://www.directproofoffunds.com/Index.html
Are there more pros or cons to using this service to purchase property when I don’t have my own money to purchase the home(s)?
Transactional funding takes no qualifications other than having an A-B (Original Seller - Investor Buyer) and a end buyer (B-C)!
Once you have both contracts in place and an appoved mortgage loan for the end buyer and everything is set to close, the transactional lender will request all documents be signed A-B and B-C then they wire funds in and escrow closes from A to B normally in the afternoon and closes from B to C normally the following morning!
The transactional funder does not require credit approval as there only placing there money with the title / escrow company after all documents are signed and only for about 24 hours! They normally make 1 to 1.5 points!
This is only for double closing (Wholesale or Retail) from original seller A to investor B (You) to your end buyer C.