Transaction Funding For Short Sale Investors

By Scott Randolph

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.

A short sale occurs when a homeowner, lender, and investor come to an agreement to sell a house for less than is actually owed on a loan. This is usually done because the homeowner is unable to pay the house payments and everyone wants to avoid the troubles of going through the foreclosure process.

Usually, an investor will offer to pay a nice amount of money upfront so that the bank recoups some of its money and the homeowner is off the hook and avoids foreclosure. Everyone is short changed a little, but the investor walks away with a great deal.

In order to secure that great deal, most investors will have to find some quick funding to support their obligation to pay for the property outright. They will sell the property for a higher price and come out of it with a profit.

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.

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