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Transactional funding is a short-term loan provided to real estate investors to finance the purchase of a property before they resell it. It's often used in cases of simultaneous or double closings.
In transactional funding, the funds are usually provided for a very short period of time - often just a few days. The investor uses these funds to purchase a property, then resells the property, typically on the same day, to an end buyer, repaying the loan. The advantage of transactional funding is that it allows real estate investors to complete transactions without using their own money.
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