What exactly is short sale transaction funding and is it something you could take advantage of right now? As times in the real estate market change more people are becoming interested in this aspect of the business. This type of funding is usually used by investors (experienced and new) who want to purchase real estate outright for a discounted rate and the flip it for a profit.
Flipping real estate has become a glamorized process through television shows and media reports that show wealthy investors flipping houses and making a ton of money. In real life, it isn't so glamorous but can be quite profitable if you know how to do it.
When you enter into a short sale as an investor or buyer, you work with the lender and current homeowner to secure a bargain price for the property. In many cases the final price is much less than the actual amount owed on the current loan. Most often this is because everyone wants to avoid the home being lost to foreclosure.
How does an investor secure such a deal? They usually have to pay for the home up front in cash, which secures a return of the loan at least partially to the lender. That is more than the lender would get in foreclosure likely and the homeowner avoids foreclosure on their record.
The investor may need to find a lending source of their own to cover the money they need to pay up front for the property. This is where they often turn to private lenders to help them get the deal covered.
Not too many years ago it was rather difficult to find out about private lenders and take advantage of these deals, but short sale transaction funding can now be found quite readily online. Lenders of all sorts are stepping into the market to make their own profits and are now open to a wider array of people. This means you could possibly enter this business or just get a great price on a foreclosure home for your own family right now.
Flipping real estate has become a glamorized process through television shows and media reports that show wealthy investors flipping houses and making a ton of money. In real life, it isn't so glamorous but can be quite profitable if you know how to do it.
When you enter into a short sale as an investor or buyer, you work with the lender and current homeowner to secure a bargain price for the property. In many cases the final price is much less than the actual amount owed on the current loan. Most often this is because everyone wants to avoid the home being lost to foreclosure.
How does an investor secure such a deal? They usually have to pay for the home up front in cash, which secures a return of the loan at least partially to the lender. That is more than the lender would get in foreclosure likely and the homeowner avoids foreclosure on their record.
The investor may need to find a lending source of their own to cover the money they need to pay up front for the property. This is where they often turn to private lenders to help them get the deal covered.
Not too many years ago it was rather difficult to find out about private lenders and take advantage of these deals, but short sale transaction funding can now be found quite readily online. Lenders of all sorts are stepping into the market to make their own profits and are now open to a wider array of people. This means you could possibly enter this business or just get a great price on a foreclosure home for your own family right now.
About the Author:
Scott Randolph is a recognized author in the area of short sales. He will show you how to get guaranteed transaction funding with no cash or credit needed. Are you in need of letter to show proof of funds? Learn about Transaction Funding and visit www.weprovidethefunds.com
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