How to Double Close with Transactional Funding

Double closing with transactional funding lets a wholesaler buy and immediately resell a property — keeping the spread private and using none of their own cash. It's one of the most powerful tools in wholesaling, and once you understand the mechanics it's straightforward. This guide walks through the entire process.

The structure: A → B → C

A double close is two separate transactions on the same property, usually the same day:

  A (motivated seller) ──▶ B (you, the wholesaler) ──▶ C (end buyer)

• Transaction 1 (A→B): You buy from the seller. Transactional funding pays for this.
• Transaction 2 (B→C): You immediately resell to your end buyer at a markup.
• The transactional funder is repaid the same day out of the proceeds from the B→C sale.

You take title for minutes to hours, and your profit is the spread between the two prices — minus fees and two sets of closing costs.

Double close vs. assignment: when to choose this path

Wholesalers can also assign a contract (sell the contract itself to the end buyer for a fee). A double close costs more — two sets of closing costs plus the funding fee — so use it specifically when:

1. Your spread is large and you'd rather not show a big assignment fee on a settlement statement that the seller or buyer sees.
2. The end buyer's lender won't accept an assignment. Many institutional and conventional buyers will only purchase from a seller of record — a double close accommodates that.
3. You want a clean chain of title as a genuine owner in the sequence.

If none of those apply, a simple assignment may be cheaper.

Step 1: Lock up the A→B contract

Get the property under contract with the motivated seller at your purchase price. Make sure the contract permits what you're about to do — your purchase contract should allow you to take title (it typically will), and you'll want the right to close through your chosen title company.

Step 2: Find and verify your end buyer (C)

This is the most important step, because the C sale repays your funding. Line up an end buyer and sign the B→C contract at your resale price. Then verify they can close — a transactional funder will require evidence the end buyer is real and funded:

• A proof-of-funds letter for a cash buyer, or
• A lender commitment / pre-approval if the end buyer is financing.

No qualified, ready end buyer means no transactional funding. The two closings should be scheduled the same day (or consecutive days for some programs).

Step 3: Choose a title company that does back-to-back closings

Not every title company or closing attorney is comfortable with simultaneous A-B-C transactions. Use one experienced in double closes — they'll coordinate the two settlement statements, the order of recording, and the flow of funds so the C proceeds pay off the A purchase and your transactional funding cleanly. Confirm this early; the wrong closing agent can derail the deal.

Step 4: Apply for transactional funding

Because the loan is repaid same-day, transactional funding underwriting is light — no credit check, no income docs, no appraisal. What you submit is the deal:

• The signed A→B purchase contract.
• The signed B→C resale contract.
• Proof of funds (or lender commitment) for your end buyer.
• The title company's information.

The funder commits to advancing 100% of the A→B purchase price.

Step 5: Understand the costs

Budget for two cost layers:

• Transactional funding fee: commonly a flat fee (often $750–$2,500) or **1–2% of the funded amount**, depending on deal size. Some lenders — including Real Lending — reduce the fee if the end buyer finances through them.
• Two sets of closing costs: title, escrow, and recording fees on both transactions.

Worked example

Line	Amount
A→B purchase (funded 100%)	$150,000
B→C resale	$172,000
Gross spread	$22,000
Transactional fee (~1.5%)	~$2,250
Two sets of closing costs (est.)	~$3,500
Net to wholesaler (approx.)	~$16,250

The spread has to comfortably cover both layers — which is exactly why a double close makes sense on larger spreads and an assignment may win on small ones.

Step 6: Close both transactions

On closing day the title company runs the sequence: the transactional funder wires the A→B purchase funds, you take title, and the B→C sale closes — the end buyer's funds pay off your purchase and the transactional funding, and your spread is disbursed to you. Done well, the whole thing happens within hours.

Common pitfalls to avoid

• No verified end buyer. The single biggest mistake. Confirm proof of funds before you commit.
• A title company that can't do back-to-back closings. Vet this early.
• Underestimating closing costs. Two sets add up; make sure the spread absorbs them.
• Misunderstanding seasoning. Some end-buyer lenders impose title-seasoning rules that complicate a same-day resale. Confirm the end buyer's financing has no seasoning requirement that breaks the timeline.
• Disclosure / state rules. Wholesaling and double-close disclosure requirements vary by state and have been changing. Work with a qualified closing attorney or title company and follow your state's rules.

When an assignment is the smarter choice

A double close isn't always the right move. Because it adds a second set of closing costs and the funding fee, a small spread is often better monetized with a simple assignment — selling the contract to the end buyer for a transparent fee. Reserve the double close for deals where the spread is large enough that you'd rather keep it private, or where the end buyer's financing won't accept an assigned contract. Running both numbers — assignment fee versus double-close net after two sets of closing costs and the transactional funding fee — tells you which path keeps more money in your pocket on a given deal.

Bottom line

A double close with transactional funding lets you complete a wholesale deal with no personal capital and a private spread — provided you have a ready, funded end buyer and an experienced title company. Line those up, budget for the fee and two sets of closing costs, and the structure does the rest. Ready to fund a double close? Get a quote with your A→B and B→C numbers.

This guide is general information for real estate professionals, not legal or financial advice. Wholesaling and double-close rules vary by state — consult a qualified attorney for your situation.