Updated about 10 years ago on . Most recent reply
Lending Money for Transactional Funding
Hello all,
I have been working with another investor on a potential Joint Venture deal, that ended up being more slim than we would prefer. The other investor has found buyers willing to buy the deal as a wholesale from us. I would need to provide the transactional funds for a double close. I have never done transactional funding before.
I would be loaning $125,000 for a single day. The other investor is also contributing funds in the about of $90,000 for the initial A to B purchase.
What points to be people charge?
What fees should also be added?
What are the inherent risks of lending like this?
What process or system should I follow while making the loan? (i.e. promissory notes, final buyer funds in escrow, etc.?