Frequently Asked Questions1. What are your rates?
Our funds are used for same-day back-to-back transactions. For Extended Transactional Funding (ETF) rates, click here. $115K or less - flat fee of $2K plus $395 prepaid processing fee Between $115,001 to $500K - 1.75% plus $395 prepaid processing fee Greater than $500K – evaluated on a case-by-case basis Request funds now! 2. May I refer your business and receive a referral fee? Do you have an affiliate program? Yes and yes. We pay you a 10% referral fee based on our transaction fee EACH TIME your referral successfully completes a transaction with us. If we earn $5K, you earn $500 for giving a name. There are four easy ways you can refer our business: 1. Send the affiliate link (see below) to all your referrals. 2. Send us an email introducing us to your referral, and we associate you with them in our database 3. Referral mentions your name when they contact us, and we record you as the referrer in our database 4. Once referral is ready to close, referral completes the funding request form on our website, and enters your name under the "Referred by…” and “Please specify" fields Probably the easiest way to refer our business is to email them an affiliate link. *Affiliate link: http://extendedtransactionfunding.com/index.php?ref=FirstLast * "FirstLast" - substitute your first and last name here without spaces. The affiliate link above can be named into a different link (for example, "My Transactional Funder") if you wish. Please consult your computer personnel should you need assistance. Each person who clicks on this link will essentially be referred by you once they apply for transactional funding. Your name will appear automatically/read-only in the "Referred by…” and “Please specify" fields in our Funding Request application. This information will be retained in their computer whenever they go to our site and is done via cookies. Please ensure that we have your contact information so we know who to pay and how we can contact you upon successful completion. 3. What other up-front costs do you charge? We only charge the $395 processing fee up to $500K. 4. Do you fund individuals? We only fund business entities such as Companies/LLCs/Trusts/Inc vs. the funding being in the person’s name (i.e., John Smith). 5. Some banks don’t like me to use my company name on the AB contract. Can I use my own name for the deal? We may have a solution for you. Please Contact Us or email us at [email protected] with the subject line stating, “How can I use my own name?” 6. Do you have 30 60 90 day transactional funding or Extended Transactional Funding (ETF) for 30 days or greater? We are piloting our Extended Transactional Funding (ETF) for up to 90 days. Please let us know if you have a transaction that is ready to go (C end-buyer already in place) and are willing to be one of our pilot customers. Bottom line – Although the process is not yet perfect during this pilot program, you can count on us to provide you with the Extended Transaction Funding so you can earn the profits you deserve. We are also working with other prospective partners to give you the best rates so please stay tuned. To get started, complete a Funding Request form now. Here are the specifications: Fees: ● $395 non-refundable processing fee (if unsuccessful, applicable towards next transaction within 6 months) ● Transaction fee *Current Transaction fees based on amount funded up to $1 million: ● 2-5 days = 3.5% ● 6-10 days = 4% ● 11-15 days = 4.5% ● 16-20 days = 5% ● 21-25 days = 5.5% ● 26-32 days = 6% ● 33-40 days = 6.5% *The transaction fee is based on the schedule above or $3,500.00, whichever is greater. Guidelines and items needed: There may be other items we need in addition to below to fully underwrite the transaction. 1. $395 non-refundable processing fee (if unsuccessful, applicable towards next transaction within 6 months) 2. Executed NCND agreement (Non-Circumvention, Non-Compete and Non-Disclosure) 3. Completed Funding Request form via our website 4. A-B must be at most 88% of B-C as a general guideline. This changes depending on the risk in the deal (i.e. location, investor, time, etc.). We also look at the overall effective spread as well (FMV, down payment in escrow, and profit margin). 5. A-B HUD and Sales Agreement 6. B-C HUD and Sales Agreement 7. Short Sale Approval Acceptance Letter 8. Preliminary Title Report from Escrow/Title Company 9. Verification of C buyer's financing / Underwriting Approval / Commitment letter 10. All C buyer's financing conditions must be cleared with exception of updated Preliminary title report with C buyer's name 11. FHA C buyer transactions require Income/Assets/Credit to be cleared 12. Appraisal of property 13. Earnest Money Deposit must equal down payment requirement by lender and must be in escrow as a hard deposit 14. Other applicable items: a. APN or MLS# assigned to a listed property if applicable b. Access code (lock box or MLS key) if applicable c. A realtor’s contact info: Name, email, phone, fax d. B realtor’s contact info: Name, email, phone, fax e. C realtor’s contact info: Name, email, phone, fax f. Escrow number assigned to a file from escrow company if available g. Order number or title report order number if available h. Party A-1st Mortgage Balance: i. Party A-2nd Mortgage Balance: j. Party A-Lien Balance: 15. After all information is submitted, commitment and funding will occur within three (3) to five (5) business days. After non-refundable processing fee is paid and NCND is signed:
If your transaction is ready to go (C end-buyer already in place), please submit a Funding Request now to get the process started. 7. Do you provide a Proof of Funds letter (POF)? Yes! We provide UNLIMITED POFs as long as you use our funds. Click Here and choose the FREE POF. 8. Do you provide a bank statement to substantiate the POF? Yes. We provide a Verification of Deposit (VOD) premium service. Please click here for more details. 9. What do I have to do to qualify for a POF? Nothing! Great isn’t it? You may use our POF service as long as you use our funds for closing on your same-day back-to-back transaction. 10. How do I get a Proof of Funds letter? Just click here, fill out the FREE POF form and you should receive our Proof of Funds letter via email within 24 hours. 11. Why did I not get my Proof of Funds letter after 20 seconds? You should receive a response within twenty (20) seconds. If you do not receive a response, please check the spelling of your email address and check your spam folder. If you still can't find the email, your internet provider may be blocking our emails for some reason. We encourage you to open a Google gmail account or any other free service and have the email sent to that address. If this persists, please contact us. 12. When do I pay the processing fee? The processing fee is due after we commit to your funding which occurs shortly after the application is submitted through our website. Request funds now! 13. If the transaction does not close, do I get the processing fee back? If this transaction does not close, the $395 processing fee is non-refundable but can be applied to your next transaction within 6 months from the time your first processing fee is paid. If that one (2nd) is unsuccessful, the original $395 processing fee is forfeited. A new $395 processing fee is due for the next transaction (3rd). Request funds now! 14. What happens if the BC closing is unsuccessful for some reason? Generally speaking, if the BC closing does not occur due to C party not going to closing for example, AB closing would not occur since B investor planned to sell the property to the C buyer and has made it known to all parties. Our transactional funds would be returned to us at no cost to the B investor. 15. Will you change your Proof of Funds letter? We don’t change the Proof of Funds letter as we get requests frequently asking us to change it. If we change it for one, we need to change it for everyone. We realize that no one letter will satisfy everyone. 16. Can I have the AB closing and BC closing on separate days? Yes, as long as C end-buyer's funds are in escrow at the time AB closes and the 2nd BC closing is within 3 days. Should you need Extended Transactional Funding (ETF) where BC closing occurs up to 40 days later, please click here for more details. 17. What criteria do you look for to get the transactional funds? No LTV, no credit check, no appraisal, and no income verification. You only have to have the seller (A), you (B investor) and end buyer (C) in place. Once you get the commitment letter from the C buyer’s mortgage company, you may complete the Funding Request form. 18. How much advance notice do you need to fund a back to back transaction? For all transactions, it would be best to notify us as soon as possible, so that we can commit to it as soon as possible. For most transactions, 3-4 days is sufficient; for transactions closer to $1M, we will need about 1 week. 19. What is the rate for transactional funds greater than $1M? The rate depends on factors such as the transaction itself, the availability of funds, and the timing of the closing. We could say between 2% and 5%, but it could be more or less. The only way for us to give a definite answer is to evaluate the deal by having the B investor complete the application in the Funding Request page. We will get back to the B investor with the rates within one business day. A national title company is needed to close the deal. 20. Can I get transactional funding with no advance notice (same day)? We may be able to if all the pieces are in order, and we have available funds. 21. What type of information do you need to evaluate the deal? The best way for us to evaluate the deal is to complete the Funding Request application. Here, one would specify the A, B and C parties and the disbursing agent which would give us a good understanding of the transaction. Subsequently, we would commit to the transaction or contact the B investor regarding outstanding questions accordingly. 22. How long must my company be established before I can do business with you? The company must be established before signing the closing documents. However, please consider that the company name must be cited on the respective AB and BC contracts. Request Funds Now! 23. What other types of back-to-back real estate transactions do you cover besides foreclosures and short sales? We can provide funds for REOs, FSBOs, flips, commercial, residential, and Realtor® (MLS) listed properties as long as these transactions are back-to-back, conducted on the same day, and use the same title company, attorney or closing agent. Request Funds Now! 24. Do you fund the closing costs? Yes, we can fund 100% of the AB closing so there would be ZERO out-of-pocket costs for the B investor. Request Funds Now! 25. Do you fund the down payment money? No, you would need to do this yourself. 26. If I don’t have a seller/property to buy or end buyer, can you help me find one? Unfortunately, no. We only lend to investors who have already found their respective sellers and buyers. 27. Do you provide funding for bundled purchases (multiple properties) as one transaction? Yes as long as it is treated like one transaction - all monies go in one escrow account and are reimbursed within the same day. If we have to process each transaction then it is not a "bundle" anymore. Request Funds Now! 28. Do you fund commercial properties? Yes, as long as it is a back-to-back transaction and the transactions close on the same day, or you can take advantage of our ETF program. Request Funds Now! 29. What states do you fund in? We fund nationwide! Request funds now! 30. Can you recommend any specific title companies and/or attorneys in my area to work with? Of course, as long as we have local contacts in your area. We also have national closing agents that we can recommend. Please Contact Us. 31. Do you fund the BC closing? No, we only fund the B investor for the AB closing. 32. Are there any other hidden costs? As part of standard funding practices, we do charge a per diem of $150 should the funds from the BC closing be received beyond 5PM after 3 days of the AB closing. Otherwise, there are no hidden costs. In fact, you are not required to produce any cash for this type of transaction since we can fund 100% including closing costs. Request Funds Now! 33. Can I use my own title company or attorney? Both transactions have to occur with one title company/closing or disbursing agent/escrow agent. More specifically, the disbursing agent for the funds has to be the same for both transactions. As long as your title company or attorney is experienced with back-to-back transactions, we will be fine with that. For larger deals we need to use our preferred title company which is usually a national title company. For ETF transactions, both transactions still have to occur with one title company/closing or disbursing agent/escrow agent. Request Funds Now! 34. I don’t have a Paypal account. How can I pay the processing fee? You don’t have to have a Paypal account. You can pay by credit card via the Paypal page! You can click on the link on the Paypal invoice email and once the Paypal page comes up, click continue. Subsequently, please look for the pay by credit card section which is usually on the left hand side. Or, you may sign-up for a Paypal account as well. However, please note that the review of your bank account or credit card you associate with your Paypal account may take a few days. 35. I’m trying to pay the processing fee via Paypal, but I’m experiencing problems. Do you accept other forms of payment for the processing fee? Unfortunately, we do not accept any other form of payment at this time. Please contact Paypal via their website’s Contact Us page. Should you not receive a quick response, please try calling them: 402-952-8899 or 402-935-2050. This may require a web pin which you would get via Paypal contact us page. Their hours are 4:00 AM PST to 10:00 PM PST Monday through Friday, 6:00 AM PST to 8:00 PM PST Saturday and Sunday. 36. I’ve paid the processing fee. Why is there a hold or review on my payment? Sometimes, Paypal reviews or holds payment for reasons only known to them. We would need to wait for their review to clear before we can proceed. It is best to pay by credit card for instant clearing. |
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