I believe that this is what we used to call "bridge loans".   Investors who assign contracts, do fix and flips, etc.  They need short-term loan money to cover the purchase, before they sell the assignment or flip the fixed-up house.  

    Loan pros John Meussner, Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi ,  George Souto or Rob Spinosa may come along and give a more detailed answer.

Short term financing like a bridge loan, common with wholesalers and flippers.

Deepak, I need a bit more definition. I work with investors who sometimes need non-confirming conventional loans.

Transactional Funding is a broad title to cover a wide range of topics in real estate funding. Essentially, it means a loan to cover a certain transaction. It usually refers to a short term loan to buy and flip a house or an advance on future moneys such as anticpated sales or purchase orders.

Those are long gone around here.

Thank you once again Fred Griffin 

Deepak Advani - you mean a Bridge Loan?

I hadn't heard this term - but bridge loan I am familiar with.  I had an investor do this once with one of my other investor clients - 6 month loan with a balloon payment so my buyer could get the house that he wanted when he couldn't get the financing quite yet.  He knew he could 6 months down the road so the 1st investor financed him, 2nd investor paid him off when he refinanced into a traditional loan.  Worked out great for both of them. -Kasey

It works a lot like hard money financing. Lots of points, higher interest rate and short term payback is part of the structure.

Deepak,

Fred Griffin has tagged all the lending experts, and I am looking forward to their answers.  Thank you for asking this.  A

I work with a lot of non traditional loans, but have not heard one called this. I have heard something similar as in quick money to close or like mentioned, a bridge loan whiel something else needs to be sold and closed. 

bridge loans are tough to find today.... lending institutions rarely give them...

Tranactional Funding is a means of real estate investing, but on the banking side. (these folks know where the real money is)  Typically this is a loan that exists for a few hours or a day, and not longer.

It is NOT purposed to allow flipping.

Most often used in B2B where same day closing or next day closing is needed. This is an excellent way to put those Roth 401Ks to work.

The problem is VOLUME. To make real money the Transactional Funding source must be utilized multiple times a month. The interest earned can be impressive.

Steps to take:

Hire an attorney

Create LLC

Fund with self-managed 401.

Identify title company to use. (usually owned by attorney above)

Hire a marketing expert in the real estate investor community.

I think you are referring to a bridge loan.  

I wish I knew what you were talking about.

As Bob Crane said - a bridge loan is all I can think of too.

Bob Crane  and Fred Griffin have good answers.

Never heard that term before.

Never heard that term but I agree with Bob.

Short term financing like a bridge loan, common with wholesalers and flippers.

Many people want in on this market High Return Lending

I do not know.

I'll defer to the lenders here.  Never heard of this.

I think Frank Antonelli gave you the right answer.

I am not familiar with this term. There are many ways to fund investors.

This is way above my cruising speed....

Parked and reading...

Good read

I have no clue.

interesting answers