Transactional funding

Same day transactional funding
for double closes

Same day capital for the A to B leg of a double close, so a wholesaler can buy from the seller and resell to the end buyer without the second closing waiting on the first. Priced per transaction, with no credit pulled.

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How it works

A to B, then B to C, on one day

You have the property under contract and a buyer waiting. We fund your purchase from the seller so that closing happens on its own schedule, and the loan is repaid out of your sale to the end buyer at the second table the same day.

The money is the simple part. What we spend our time on is the part that actually decides whether the deal closes.

  • A signed A to B contract and a signed B to C contract.
  • An end buyer whose funds have been confirmed rather than described.
  • One title company willing to run both closings on the same day.
  • Proof of funds issued against the specific transaction, on request.
  • Up to 100% of the purchase price on the A to B leg.

On the day, the order is fixed: the end buyer’s money reaches the closing agent, our wire for the A to B price lands, the seller is paid and your deed records, then the B to C leg closes and repays the loan. How to double close a wholesale deal walks through every stage, and title companies that do double closings covers finding the agent who will run both legs.

Who it is for

Wholesalers, and contracts that cannot be assigned

Transactional funding is built for wholesalers: an investor with a property under contract and an end buyer lined up, who needs to own it for a few hours rather than assign the contract. What transactional funding is covers when that is worth paying for, and double closing vs assignment of contract sets the two routes side by side.

  • A contract that cannot be assigned, or a seller who will not consent to an assignment.
  • A fee you would rather the end buyer did not see on the closing statement.
  • An end buyer whose lender will not accept an assigned contract.
  • A closing agent who requires the A to B leg to be funded on its own before the resale.

One end buyer it cannot help: an FHA-insured buyer cannot close the B to C leg of a double close, and the FHA 90 day flip rule explains why. Before you book funding, read what transactional funding costs, what a proof of funds letter can and cannot do with a seller, and how to choose a transactional funding lender.

What goes wrong

Three things kill a double close, and none is the money

The title company

Plenty will not run a same day double close at all, and they tend to say so late. Confirm it before the contract dates are set, not after.

The C side lender

A seasoning rule can refuse a property the seller has owned for hours. If the end buyer is financing, the rule belongs in the conversation on day one.

The end buyer

Proof of funds that does not survive a phone call is the most common failure, and the one that costs the wholesaler the deposit rather than the lender the money.

What it costs you

Priced per transaction, quoted on the deal in front of us. Two sets of closing costs are part of a double close and belong in your spread from the start.

Questions we get

Transactional funding, answered

What is transactional funding?
In real estate, transactional funding is same day capital that funds the A to B leg of a double close, so a wholesaler can buy from the seller and resell to the end buyer without the second closing waiting on the first. The loan is outstanding for hours, not months, and it is repaid out of the B to C closing.
How does transactional funding work?
Both sales go through one closing agent. The end buyer’s money reaches the agent first; the lender then wires the A to B purchase price, the original seller is paid, and the deed to the wholesaler records. The B to C sale closes next, the agent repays the lender its principal and fee out of the end buyer’s funds, and the remainder, after costs, goes to the wholesaler as the spread, usually the same day.
What is double closing in real estate?
A double closing is two sales of the same property, usually on the same day: the original seller sells to an investor (A to B), and the investor resells to an end buyer (B to C). Each leg has its own contract, deed, closing and settlement statement, and the investor has to fund the first purchase without relying on the end buyer’s money, which is what transactional funding is for.
What do you need to fund a double close?
A signed A to B contract, a signed B to C contract, an end buyer whose funds are confirmed, and a title company that will actually run both closings on the same day. Entrusted Capital funds the A to B leg and does not pull credit for it, because the deal repays itself at the second table.
How much does transactional funding cost?
It is priced as a one-time fee rather than an interest rate, commonly quoted in the market at about 1% to 2.5% of the amount funded, sometimes with a flat fee or a minimum on top, and it is paid out of the B to C proceeds. Entrusted Capital prices per transaction, quoted on the deal in front of it. Budget for two sets of closing and title charges as well, because a double close is two sales.
What is a transactional lender?
A lender that makes transactional funding: a same day loan for the A to B leg of a double close, repaid out of the B to C closing. Because the loan is repaid from the end buyer’s money within hours, a transactional lender underwrites the deal rather than the borrower: the two contracts, the end buyer’s funds and a closing agent who will run both legs.
What usually kills a double close?
Rarely the money. It is a title company that will not do a same day double close, a lender on the C side with a seasoning rule that refuses a property the seller has owned for hours, or an end buyer whose proof of funds does not survive a phone call. Settle those three before the money is booked.
Do you provide a proof of funds letter?
On request, against a real deal. A proof of funds letter is a statement that we are prepared to fund a specific transaction, which is why it is issued per transaction rather than handed out as a document to shop with.
Is credit pulled for transactional funding?
No. The A to B leg is underwritten on the transaction, not the borrower: two contracts, a verified end buyer, and one title company running both closings the same day.

From the blog

More on this

Two contracts and a title company
is the whole conversation

Tell us the closing date and who is on the other side of it. We fund the first leg so the second one can happen.