Why Do Transactional Lenders Charge High Fees?

[Sean Dezoysa]

I notice that transactional lenders seem to charge about $3,000 to provide very short-term funding to do a double close. Since transactional lenders typically require an end buyer to be in place, it seems to me that there is very little risk in this deal. I must be missing something though because if there were little to no risk, competition would drive lending fees down.

What exactly are the risks involved in transactional funding from the lender's perspective?