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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.
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.
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.
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.