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What Is Transactional Funding?

Transactional funding real estate is a short-term loan used to close a deal when you’re buying and reselling a property on the same day.

• Often called “flash funding” or “same-day funding.”
• Used primarily in double closings.
• Paid back within 24 hours, sometimes within hours.

As Jamil Damji puts it: “Transactional funding is your bridge between the seller and the buyer. Without it, you’re stuck in the middle.”

How Double Closings Work

A double closing is two back-to-back closings:

1. A-to-B Closing – Wholesaler buys from seller.
2. B-to-C Closing – Wholesaler sells to end buyer, same day.

The wholesaler never really “holds” the property. They just bridge the transaction.

When to Use Transactional Funding

• When assignment fees are large. If you’re making $20k–$50k, sellers/buyers may push back. Double closings hide your spread.
• When contracts aren’t assignable. Some sellers forbid assignments.
• When agents or title companies require it. In CA and NY, many MLS deals require double closings.
• When you want privacy. Keeps your profit off the HUD.

Step-by-Step Transactional Deal

1. Contract the property – You (the wholesaler) sign with the seller.
2. Line up your buyer – Investor ready to close same day.
3. Secure transactional funding – Short-term lender provides funds for A-to-B closing.
4. Close A-to-B – You buy from the seller using the loan.
5. Close B-to-C – You resell to buyer, pay back the loan, keep the spread.

Example:

• A-to-B: Buy for $85,000.
• B-to-C: Sell for $110,000.
• Spread: $25,000.
• Less fees/loan costs → Net profit ~$22,000.

Transactional Funding Real Estate: State-by-State Insights

California

• EMDs often $20k–$50k.
• Many MLS deals require double closings instead of assignments.
• Transactional lenders familiar with CA market are essential.

Florida

• Hot wholesaling market (Miami, Orlando, Tampa).
• Title companies often require funds in escrow before opening.
• Transactional funding is common for wholesalers making $20k+ spreads.

Texas

• Multifamily deals sometimes require double closes with liquidity letters.
• Houston/Dallas wholesalers use flash funding for big spreads.
• Lenders verify liquidity before issuing funds.

Missouri

• EMDs average $5k–$15k for flips.
• Kansas City and St. Louis wholesalers use transactional funding to avoid assignment scrutiny.
• Title companies vary — some allow assignments, others demand double closes.

Real-Life Investor Examples

• Dallas Wholesaler: Bought at $120k, sold at $150k the same day. Transactional funding fee was $1,200. Net profit = $28,800.
• Orlando Investor: Seller refused assignment. Transactional funding allowed a $25k profit via double close.
• Los Angeles Wholesaler: Spread was $60k on a triplex. Assignment would’ve killed the deal. Double close with flash funding → deal saved.

As Pace Morby says: “When the spread is fat, you double close. Period.”

Transactional Funding Real Estate: Challenges & Risks

• Closing costs twice. Two transactions = two sets of fees.
• Precise timing required. Any delay kills the deal.
• Finding the right lender. Not all lenders understand wholesaling.
• Higher costs. Transactional loans charge flat fees or percentages.

How We Help With Transactional Funding

We provide:

1. Same-day funding – so your A-to-B closes without delays.
2. Nationwide coverage – familiar with title companies in multiple states.
3. Flexibility – deals from $50k up to $5M+.
4. Integrated support – pair with gap, EMD, or liquidity solutions.

This keeps deals alive when other wholesalers get stuck.

Transactional Funding Real Estate: Best Practices for Wholesalers

• Always line up your buyer before funding.
• Work with title companies that know wholesaling.
• Budget for two sets of closing costs.
• Choose lenders who understand flash funding.
• Use double closings strategically — not for every deal.

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