What do these lending words mean?
A double close is an A-B purchase and a B-C resale. Transactional funding pays for the purchase at 1% the same day or 2% within 7 calendar days. Earnest money (EMD) is the deposit in the purchase contract. The full list is below.
What is transactional funding?
Transactional funding is a very short-term business-purpose loan that pays for the A-B purchase in a double close. The loan is repaid from the B-C resale proceeds. Brittco Capital publishes a fee of 1% when that resale closes the same calendar day and 2% when it closes within 7 calendar days.
What is a double close?
A double close is two transactions on the same property. The investor buys from the seller (A-B) and sells to the end buyer (B-C). Transactional funding pays for the purchase and is repaid from the resale. It is not a loan to the end buyer and not a consumer mortgage.
What is an A-B contract?
The A-B contract is the investor’s purchase from the original seller. In a Brittco transactional file, that is the contract the loan is funding.
What is a B-C contract?
The B-C contract is the investor’s resale to the end buyer. The transactional loan is repaid from those proceeds. Same-day means both closings fall on the same calendar day. The 2% fee applies when the resale closes within 7 calendar days.
What is a same-day close?
A same-day close means Brittco funds the A-B purchase and the loan is repaid from the B-C resale on the same calendar day. The published fee is 1% of the amount funded.
What is the seven-day window?
The seven-day window runs from the day the A-B purchase is funded through 7 calendar days, including a weekend that falls in that span. If the B-C resale closes inside that window and not on the funding day, the fee is 2%. Send a longer gap with the file and we will price it with you.
What is earnest money, or EMD?
Earnest money, often shortened to EMD, is the deposit a buyer pays under a purchase contract. The contract states the amount. If you have a receipt, include it with the A-B contract.
What is a business-purpose loan?
A business-purpose loan, as Brittco uses the term, is a loan for investment real estate and not for a home the borrower will occupy. Brittco does not make consumer loans or owner-occupied mortgage loans.
What does direct lender mean here?
A direct lender is the company that makes the lending decision. Brittco Capital, Inc. is a direct private lender. It is not a broker, and the people you reach are the people who decide on the loan.
What is a private money loan?
A private money loan is a short-term, asset-based loan on investment property. Send the property and we price the rate, the term, and the leverage with that file. It is a different product from transactional funding.
What is a bridge loan?
A bridge loan carries an investment property between a purchase and a later sale or refinance. Brittco groups bridge loans with private money and prices them with the file.
What is a rehab draw?
A rehab draw is a release of renovation money after a portion of the work is done and inspected. On a Brittco fix and flip loan, rehab funds stay back at closing and are not released automatically. The purchase, if approved, is separate from those later draws.
What is a proof-of-funds letter?
A proof-of-funds letter, when Brittco issues one, belongs to a specific file. It is not an approval. Start with the contracts and the closing dates.
What does investment property mean here?
Investment property is real estate the borrower will not occupy as a home. Brittco loans described on this site are secured by investment real estate. A home someone will live in is outside that lending.
Who is the closer?
The closer is the title company or closing attorney who handles the file. Some states commonly use a title company. Others commonly use a closing attorney. Brittco coordinates the purchase wire with that office.
Read the resource articles·Read the transactional funding overview