Transactional Funding
Very short-term (often same-day) capital that funds the A-to-B purchase in a back-to-back double close, repaid hours later from the B-to-C sale proceeds. Used by wholesalers.
Transactional funding is ultra-short-term capital — frequently lasting only a few hours — that funds the first leg of a back-to-back real estate transaction. It exists for one specific job: letting a wholesaler complete a double close without using their own cash.
The double-close it powers
In a double close there are two separate transactions on the same day:
- A → B: The seller (A) sells to the investor/wholesaler (B).
- B → C: The investor (B) immediately resells to the end buyer (C) at a markup.
Transactional funding provides the cash for the A→B purchase. Because the B→C sale closes minutes or hours later, the funder is repaid the same day from the end buyer's proceeds — keeping their capital at risk only briefly.
Transactional lender → funds A→B purchase
A (seller) ── sells ──▶ B (wholesaler) ── sells ──▶ C (end buyer)
C's funds repay the transactional lender same day
Why wholesalers use it
- No assignment disclosure. Unlike assigning a contract, a double close keeps the wholesaler's spread off the closing statements the other parties see — useful when the assignment fee is large.
- No personal capital. 100% of the A→B purchase is funded.
- End-buyer financing compatibility. Some end buyers (or their lenders) won't accept an assignment but will buy from a seller of record — a double close accommodates that.
Typical terms
| Feature | Typical |
|---|---|
| Duration | Same day (up to ~24–48 hrs) |
| Funding | 100% of the A→B price |
| Credit/income check | None — repaid from the C sale |
| Fee | ~1–2% of the funded amount, or a flat fee (often ~$750–$2,500) |
| Requirement | A simultaneous, ready-to-close B→C buyer |
The one non-negotiable
Transactional funding only works when the B→C buyer is real and ready to close. The funder is repaid from that sale, so most require evidence of the end buyer's funds before they commit. No qualified end buyer, no transactional funding. Learn the full mechanics in our guide to double closing with transactional funding.
Frequently asked questions
How long is transactional funding outstanding?
Usually just hours — the same day. The funder advances cash for the A→B purchase and is repaid from the B→C sale that closes minutes to hours later. Some programs allow up to 24–48 hours if the closings are on consecutive days.
Do I need good credit for transactional funding?
No. Because the loan is repaid same-day from the end buyer's proceeds, transactional funders generally don't check credit or income. What they require is proof of a ready, funded end buyer for the B→C sale.
What does transactional funding cost?
Commonly about 1–2% of the funded amount, or a flat fee (often in the $750–$2,500 range), depending on deal size and lender. Some lenders discount the fee if the end buyer finances their purchase through them.