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Short sale transaction funding is often a necessary part of purchasing real estate property that is about to enter the foreclosure process. Often, this type of funding is secured by investors who are in the business of buying property at reduced rates and then turning it around in a sale for higher profit to someone else.
The idea of flipping real estate has taken on a very glamorous role as a way to get filthy rich easily. It is not quite so simple in the real world as it appears on the television shows, but it is an opportunity for many people to make smart investments and get some profit.
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.
How does an investor secure such a deal? They usually have to pay for the home up front in cash, which secures a return of the loan at least partially to the lender. That is more than the lender would get in foreclosure likely and the homeowner avoids foreclosure on their record.
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.
It used to be that finding private lenders willing to work in this capacity was hard to find unless you knew someone already in the business. Today, it is easier to find short sale transaction funding sources since more lenders are making themselves available online to more people. If you are interested in trying your hand at flipping property or even just want to snag up a short sale property to live in yourself, the internet is your primary source for the best lending opportunities.
The idea of flipping real estate has taken on a very glamorous role as a way to get filthy rich easily. It is not quite so simple in the real world as it appears on the television shows, but it is an opportunity for many people to make smart investments and get some profit.
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.
How does an investor secure such a deal? They usually have to pay for the home up front in cash, which secures a return of the loan at least partially to the lender. That is more than the lender would get in foreclosure likely and the homeowner avoids foreclosure on their record.
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.
It used to be that finding private lenders willing to work in this capacity was hard to find unless you knew someone already in the business. Today, it is easier to find short sale transaction funding sources since more lenders are making themselves available online to more people. If you are interested in trying your hand at flipping property or even just want to snag up a short sale property to live in yourself, the internet is your primary source for the best lending opportunities.
About the Author:
Scott Randolph is a recommended expert in the area of short sales. He will show you how to get guaranteed transaction funding with no cash or credit needed. Are you in need of letter to show proof of funds? Learn about Transaction Funding and visit www.weprovidethefunds.com
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