Lending
More than 30 Years of Lending Excellence
For more than 30 years, the ownership of Castle Rock Capital Funding has been helping borrowers realize the dream of home ownership, build rental portfolio empires, finance home flipping businesses, and help borrowers finance their business properties. Based in Tampa, Florida, Castle Rock makes residential loans in the State of Florida and Commercial Loans in all 50 States.
We are the loan experts when it comes to:
- Conventional Loans
- FHA
- VA
- USDA
- Commercial
- Real Estate Investor Fix-n-Flip Loans
- Rental Loans / DSCR Loans
Real Estate Investor Lending
Many lenders claim to know how to lend to those building a real estate portfolio. Castle Rock actually excels at it. As a matter of fact, our COO Doug Smith has a formal credit background from two of the largest banks in the world and he regularly speaks to industry insiders on the subject. In this video. he serves on a panel at IMN’s Single Family Rental Forum with some of the industry’s top experts. Let Castle Rock be your finance partner as you build your rental property empire.
Transactional Funding
One of the most lucrative, risk-averse transactions we do is Transactional Funding. We’re seeing to increase our capital to expand our practice.
Here’s how Transactional Funding works. There are three parties in an “A to B, B to C” transaction. Actually, there are 2 transactions that are happening in tandem. The parties are:
A: A person that is willing to sell their home, usually in a distressed situation, to a wholesaler (B).
B: A Wholesaler hunts for people willing to sell their homes, but they don’t have the money to close typically. They enter into a contract with A to purchase their home.
C: An End buyer for the home.
Contract A-B: B enters into a contract to purchase a home from A for one price, let’s say $100,000 for purposes of this example. B puts down a deposit, let’s say $5000 for this example, and, per the contract, they have a period of time, let’s say 30 days for this example, prior to closing.
Contract B-C: During the due diligence period for Contract A-B, B enters into a contract to sell the home to C for more than the A-B Contract…let’s say for $120,000. The closing is scheduled to close on the same day as the A-B contract. B requires that C put down a significant, non-refundable deposit…let’s say they agree to 25% down for the purposes of this example.
B intends to walk away with the $20,000 difference minus their costs, but they need the cash to close on the A-B transaction. They usually can’t, by law, use C’s money for that A-B closing. To do this, they turn to a Transactional Funder.
The Transactional Funder wires in the money to close the A-B transaction for B. The Transactional Funder’s funds are returned to them later that day or the next day from the title company plus a funding fee…usually 1.5% – 3% for the use of their funds for that short, 24-hour period of time.
In order to this, the Transactional Funder (TF) requires:
- An insured closing with the same title agent, perhaps someone the TF chooses.
- An analysis of the subject property
- Both contracts to review
- A mortgage contract with B for the property during the A-B transaction.
- A significant, non-refundable deposit from C that will go to the TF along with the subject property should the 2nd transaction not close.
Transactional Funding is not well-known, but it’s very lucrative and, when done by a lender that is experienced with it, very low in risk. This is one of the transactions that we do.
Visit Our Sister Mortgage Company Site
Castle Rock Capital Funding (NMLS 2318381) is an NMLS-Licensed Mortgage Company based in Tampa, FL. It does lending for real estate investors in all 50 States in the US and residential loans in Florida. Click the button below to visit their site.
