Transactional Funding Double Close

Transactional funding double close is a short-term real estate financing strategy that allows an investor to purchase and resell a property on the same day, or within a very short time frame, without using personal funds. It is commonly used by real estate wholesalers and investors who need temporary capital to complete back-to-back transactions.

In a transactional funding double close, the investor enters into two separate contracts. The first contract is between the original seller and the investor. The second contract is between the investor and the end buyer. Transactional funding provides the money needed to complete the first purchase, and the loan is repaid immediately from the proceeds of the second sale.

This type of funding is asset-based and deal-specific. Approval is based on the strength of the transaction rather than the investor’s credit or income. The lender typically requires proof that the end buyer has sufficient funds or financing in place to complete the resale. Because the loan exists for only a few hours or one business day, it is considered very low risk for the lender.

Transactional funding double close is often used instead of assigning a contract. A double close keeps the investor’s profit private, avoids assignment restrictions, and presents a cleaner transaction to sellers and buyers. Many investors prefer this method when dealing with higher profit spreads or when working with buyers who do not want to see assignment fees.

The cost of transactional funding is usually a flat fee, often ranging from 1% to 3% of the purchase price, plus standard closing costs. Since the loan is repaid almost immediately, there is no long-term interest. However, accurate coordination is critical. Both closings must be scheduled properly, and the end buyer must be fully committed to closing.

In summary, transactional funding double close is a powerful tool for real estate investors who want to complete back-to-back transactions without using their own capital. When structured correctly with experienced title companies and reliable end buyers, it allows investors to close deals efficiently, protect profits, and scale their business.