Transactional Funding

About Transactional Funding

Based in Hollywood, FL, Transactional Funding is a hard money lender offering loans in Florida and Georgia. Their focus is mainly on short term fix and flip loans. They primarily offer loans for single family units and multi family residences.

Loan Types Offered: Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: FL, GA

Lending Guidelines for Transactional Funding

Below are the general loan guidelines published on the Transactional Funding website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Transactional Funding.

Loan Example 1

Rosario finds a townhome in Miami, FL to renovate and re-sell. Since she does not have enough cash on-hand to purchase the $320,000 property outright, she takes out a private money loan from Transactional Funding. As the lender sets a 70% loan to value, Rosario will be required to put 30% down and the total amount of the note will be $224,000. The terms of the loan also stipulate a three percent origination fee which will be paid at the closing and a 12 month, interest-only note with a 9% interest rate.

According to the parameters of the deal, Rosario will be required to pay a $6,720 origination fee plus 30% of the sales price, or $96,000, since there is a 70% LTV. The lender will collect $1,680 in monthly interest payments from the borrower. This is computed by taking the total note amount of $224,000, multiplying that by the 9% interest rate, and then dividing that number by 12. At the expiration of the note, she sells the renovated property for $400,000. After subtracting the $20,160 in interest expenses ($1,680 multiplied by 12 months), the $6,720 origination fee, the $224,000 principle amount on the note, and the $96,000 she brought to the closing, she will make a total profit of $53,120 ($400,000 sales price minus $346,880 in total costs). This profit would be reduced by any rehab costs paid by the borrow.

Loan Example 2

Maurice locates a property in Miami, FL to remodel and re-sell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Transactional Funding with the following parameters:

$300,000 purchase price
60% loan-to-value (LTV)
6 month term
12% rate of interest
2% origination fee

Based on a $405,000 sales price after the 6 month term, the numbers for the deal would look like this:

$405,000 sales price
- $180,000 principle on note (60% LTV)
- $120,000 down payment (40% on 60% LTV)
- $3,600 origination points (2% of the $180,000 principle)
- $10,800 total interest paid (6 months x 12% interest)
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= $90,600 total profit (does not include taxes or renovation costs)