You have a seller. You have a buyer. You have a spread. The only problem is you need to actually buy the property before you can sell it — and you don't have the capital to do it. Transactional funding solves that problem in hours, not days.
Real estate wholesalers and investors who do double closes face a specific challenge: most title companies and end buyers require the seller to actually take title to the property before selling it. You can't just assign your contract to the end buyer — you need to close on it first.
That means you need capital to fund the purchase — even if you're only holding the property for a few hours.
This is where transactional funding comes in.
Transactional funding is short-term capital — typically same-day or 1–7 days — used specifically to fund the A-to-B leg of a double close real estate transaction.
Here's how a typical double close works:
You have a single family investment property under contract at $180,000 and an end buyer ready to purchase at $220,000. Your spread is $40,000. You need $180,000 to fund the A-to-B close. A transactional funder provides the $180,000. The B-to-C close happens the same day. From the $220,000 proceeds you repay the funder $180,000 plus a flat fee. Your net profit: approximately $36,000–$38,000 depending on the fee structure.
Transactional funding is used by:
A lot of people confuse transactional funding with hard money lending. They're different products for different situations:
Hard money is for deals where you're holding the property for weeks or months — fix and flips, rehabs, short-term bridge loans. Terms are typically 6–24 months. The lender underwrites the borrower and the property thoroughly. Rates are higher than conventional lending.
Transactional funding is for same-day or very short-term closings — hours to a few days. The funder isn't underwriting you as a long-term borrower. They're looking at the deal: is there a confirmed end buyer, a clean title, and a clear same-day exit? If yes, the capital can move fast.
Key Difference: Hard money lenders care about you and the property's long-term value. Transactional funders care about one thing — is there a confirmed buyer on the other side of this deal who is ready to close?
Transactional funding is typically priced as a flat fee rather than an interest rate, since the term is so short. Common pricing structures include:
Because the fee is a known, predictable cost, experienced wholesalers simply factor it into their deal analysis when calculating their spread.
Unlike traditional lenders, transactional funders don't heavily scrutinize your credit score or long-term financial history. What they do look at:
Even with transactional funding in place, double closes can fall apart. The most common reasons:
Pro Tip: Not all title companies will facilitate a double close. Find one that does before you're under contract — it saves a lot of stress when closing day arrives.
Transactional funding is a straightforward tool that lets wholesalers and investors execute double closes without tying up their own capital. When used correctly, it lets you scale your deal volume without capital constraints.
If you have a double close coming up and need same-day or short-term capital for the A-to-B leg, submit your deal for review. We respond quickly and we understand how these transactions work.
Submit your deal now. We respond within 24–48 hours with a direct answer on whether we can fund it.
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