Short Term & Transactional Funding
Transactional lending, also known as short-term or bridge financing, is offered to our clients when borrowers require funds for a brief period of time. By enabling a faster turnaround in real estate transactions, short term funding helps borrowers reduce holding costs, such as property taxes, insurance, and maintenance expenses. This results in potential cost savings and a more efficient investment strategy.
Competitive Advantage
In competitive real estate markets, being able to offer a quick closing with transactional lending can give investors a significant advantage. Sellers are often more inclined to accept offers from buyers who can provide proof of readily available financing, increasing the chances of successfully acquiring the property.
Asset-Centric Approach
Transactional lenders primarily evaluate the property being purchased rather than the borrower's credit history or income. As a result, borrowers with less-than-ideal credit or those involved in fix-and-flip projects can still access short-term financing based on the property's value and potential.
Bridge Financing
Transactional lending bridges the gap between the purchase and resale of a property. It provides the necessary funds to acquire a property quickly, make necessary improvements, and then resell it for a profit. This type of financing is instrumental for real estate investors involved in fix-and-flip or wholesale transactions.