BFS provides Commercial Real Estate Loans throughout North America.
At BFS we have set goals with a few visionary people, and over the past few years, we have grown into a team of experienced professionals. We understand real estate buyers and consumers and we are able to make common sense credit decisions.
We place funding and financing substantially backed by the acquired or refinanced residential property value.
BFS provides Transactional Funding, Project Capital, and Asset Leases.
Transactional Funding requests will only be considered with a bona fide real estate contract pending, Verifiable Exit Strategy (usually involves a real estate contract and escrow agreement), and BFS meeting the pre-qualification requirements.
So that means that 85% of the rehab was financed.
Now because all the documentation is submitted, the transactional funder/hard money lender will put up the $60,000 for (B) within 72 hours or more. The contract total cost of the purchase equates to 105,000.
The transactional funder/ hard money lender sees that (B) has a monetary spread (105,000 to 200,000), so the transactional funder/hard money lender provides the 60,000 (B). Transactional funding will charge of their money that was loaned to B after closing on the house.
After expenses ($60,000 x 5%= $3,000 to transactional funder plus the original $60,000/ plus $45,000 on rehab equates to $108,000 in expenses. This house was sold for $200,000 which leaves a profit of $92,000.
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