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Why Transactional Funding Real Estate Matters
Wholesalers and investors often face a problem: a motivated seller on one side, a ready buyer on the other — but not enough capital to close the first deal.
Transactional funding solves this. It’s a short-term loan used for double closings — when an investor buys and sells the same property on the same day.
This strategy helps wholesalers:
- Keep assignment fees private
- Protect spreads on large deals
- Close even when sellers or buyers resist contract assignments
Our company specializes in providing fast transactional funding nationwide so investors can close deals that would otherwise fall apart.
What Is Transactional Funding Real Estate?
Transactional funding is a short-term loan used to fund the “A-to-B” leg of a double closing.
- A-to-B: Wholesaler (you) buys from seller.
- B-to-C: Wholesaler immediately resells to end buyer.
The transactional lender provides funds for the first closing. The loan is repaid within hours, at the second closing, from the end buyer’s funds.
How Double Closings Work (Step-by-Step)
- Find a property – Wholesaler contracts with seller at $100,000.
- Line up end buyer – Investor agrees to buy at $120,000.
- First closing (A-to-B) – Transactional lender provides $100,000.
- Second closing (B-to-C) – End buyer pays $120,000.
- Profit – After loan fees, wholesaler nets $18,000–$19,000.
Timeline: Both closings happen the same day, often within hours.
Real-Life Examples
Miami, FL
- Contract price: $200,000
- Buyer price: $235,000
- Transactional loan: $200,000 (same-day)
- Result: $35,000 spread, protected from seller objections.
California (Los Angeles)
- High EMD market: Seller required $20,000 upfront.
- Investor used gap + transactional funding combo.
- Protected $50,000 wholesale fee.
New York (Brooklyn)
- Title company required full funding for A-to-B.
- Investor used transactional loan for $150,000 purchase, resold hours later for $175,000.
Benefits of Transactional Funding Real Estate
- Keeps spreads private – Sellers/buyers don’t see assignment fee.
- Builds credibility – You actually take title (even briefly).
- Larger spreads possible – Works better than assignments on big deals.
- Legal protection – Reduces disputes over wholesale profits.
Challenges & Risks (Where We Help)
- Closing Costs Twice – Two closings = two sets of fees.
- Timing Risk – Must coordinate seller, buyer, title, and lender.
- Lender Selection – Not all lenders understand double closings.
Solution: Our company provides transactional loans designed for wholesalers, with coordinated funding, gap loan add-ons, and support for high-EMD markets.
Transactional Funding vs Other Methods
| Method | Best For | Pros | Cons |
| Assignment | Small spreads, simple deals | Easy, low cost | Fee visible, seller pushback |
| Transactional Funding | Large spreads, sensitive sellers | Profit private, legal protection | Two closings, higher costs |
| Gap Funding | Down payments, EMDs, carrying costs | Covers missing pieces | Not for same-day closings |
How to Qualify for Transactional Funding
- End buyer must already be lined up.
- Contracts signed for both A-to-B and B-to-C.
- Exit strategy must be clear.
- Strong title company coordination required.
Best Practices
- Work with title companies familiar with wholesaler double closings.
- Always have buyer locked in before funding.
- Use gap loans if EMDs or down payments are required upfront.
Plan exits conservatively (don’t rely on “buyer might show up”).
FAQs
What is transactional funding real estate?
It’s a short-term loan used for the first leg of a double closing. Repaid within hours using end buyer funds.
Why use transactional funding instead of assignments?
It protects your spread and keeps profits private when sellers or buyers object to assignments.
Do I need good credit for transactional funding?
No. These loans are deal-based, not credit-score based.
How fast can transactional loans be arranged?
Within 24–48 hours if contracts and title are ready.
Does your company provide transactional funding?
Yes — we fund A-to-B legs nationwide, cover high EMDs with gap loans, and help wholesalers protect profits.
