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Updated over 4 years ago on . Most recent reply
![Benjamin Z. Pickens's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1037524/1621507896-avatar-benjaminz3.jpg?twic=v1/output=image/crop=1285x1285@592x71/cover=128x128&v=2)
Is this the gist of Tranaactional Financing.
Can someone clear this up for me or confirm my understanding?
Is this how transactional funding works:
1. Secure a contract for $50k.
2. Secure Transactional funding at say 2%
3. Secure buyer (not sure how to do this if legally I can't market a property I do not own) with purchase agreement to buy property for $75k.
4. Close with seller using 50k plus closing costs (2k) for a total of 52k from TF.
5. Close with end buyer. $52k(+$2.6k for interest) goes to TF. The rest ($20.4k) is profit for investor.
Am I understanding this correctly?