TRANSACTIONAL FUNDING WITH JDB
How Does Transactional Funding Work?
A back-to-back closing is often referred to as “A to B, B to C” transaction in the real estate investing world. Essentially, a seller (A) goes into contract with an investor (B) so the investor can purchase piece of property. During the timeframe the investor has between the contracted date and the actual closing, the investor (B) works to find an end buyer (C) who will purchase the property from the investor the same day(or shortly after) they buy it, at a higher price.
When you are doing back-to-back closing it is important that each transaction stand on its own, independently. In order to create this independence, you, the investor, are required to provide their own funds to consummate the purchase from the seller before you can resell to the end buyer that same day. You, the investor are required to do this because you are not allowed to use your end buyer’s money to fund your purchase.
For Example:
1. SELLER(A) sells $200,000 home to INVESTOR(B)
2. The transactional funds provider provides investor B the $200,000 to close the deal
3. Then Same Day (or shortly after) INVESTOR (B) resells home for $230,000 to END BUYER (C) For a Profit
What Kinds Of Deals Will We Fund For You?
- REO’s
- Bulk REO’s
- Bank Owned Properties
- Probate
- Wholesale Residential or Commercial Properties
- Land
- Short Sales
Please fill out our submission form
Fax or email your documents to 330 754 1419 or submissions@jdbfinancialllc.com
|
Holding Period (Days) |
Profit Allocation |
|
0-1 Days |
2.00% |
|
2-5 Days |
2.75% |
|
6-15 Days |
5.25% |
|
16-25 Days |
6.50% |
|
26-35 Days |
7.75% |
|
36-45 Days |
9.25% |
|
46-60 Days |
11.25% |
|
61-95 Days |
14.75% |
