What is transactional funding?

Short term capital that funds the first leg of a double closing. The lender covers the A to B purchase, the B to C sale closes shortly after, and the loan is repaid from those proceeds. The hold is usually same day.

When do you need a double closing instead of an assignment?

When the seller or their lender prohibits assignment, when the property is bank owned with deed restrictions, or when you do not want the end buyer to see your spread. Some title companies also decline to close large assignments.

Do you need proof of funds for transactional funding?

You need to show the end buyer can close their leg. On your side the lender underwrites the deal itself, so what matters is the contracts, the closing date, and the spread.

What does transactional funding cost?

It is priced as a flat fee rather than an annual rate, because the hold is measured in hours. Cost is driven by the size of the A to B purchase, not by how long the money is out.

BlogGuide

Transactional funding for wholesalers: same-day A to B to C

Same-day funding for the A to B leg of a double close, priced before you write the offer. What is offered, what it needs, and how it works.

August 11, 2026 · 5 min read

Most wholesale deals close as an assignment. You put a property under contract, assign that contract to an end buyer for a fee, and never take title.

Sometimes you cannot. Transactional funding exists for those deals.

Same-day funding for the A to B leg of a double close, so you can close without assigning the contract and without your spread appearing on the seller's settlement statement.


What it funds	The A to B purchase on a double close
Structure	A to B and B to C, same day
Pre-approval	Priced ahead of the offer, inside 24 to 48 hours
Decision	Written terms in 24 to 48 hours
Cost	A flat fee for the transaction, set per deal, not an interest rate
You need	Both contracts, a verified end buyer, and a title company that does simultaneous closings

Send the deal over with both contracts and your closing date. If you are still writing the offer, send the numbers first and you will know what the deal supports before you commit to a price.

What you get

The A to B closing funded. The money is outstanding for the gap between the two closings, commonly an hour or two on the same day, and is repaid from your end buyer's proceeds at B to C.

The deal priced before you commit. Against this specific property and its numbers, so a listing agent can see the offer is real and the seller treats it as real rather than as one more contract that will not close. The strongest version of that is not a letter at all: it is a deal somebody has already priced, because that says the money has looked at this specific property rather than at your general situation.

A straight answer either way. Including when the answer is no, which is worth more than a slow maybe when you are holding a contract you cannot fund.

What has to be true

Both contracts executed, A to B and B to C
An end buyer whose funds you have actually verified
A title company that will handle simultaneous closings, confirmed in writing
Both closings scheduled the same day

The end buyer is the leg that fails. If their financing is not real, you have bought a property with borrowed money and no exit, and transactional funding is not designed to be held. Verify them with the same scepticism a seller applies to you.

How the two closings connect

A double closing is two separate transactions on the same property, usually the same day.

A to B. The original seller sells to you. You take title. This is the leg that needs funding, because you are actually buying the property.

B to C. You sell to your end buyer. Their funds arrive and the transactional loan is repaid out of the proceeds. Your spread is what remains.

The lender is exposed for the gap between the two, which is often a matter of hours. That is why the product is priced as a flat fee rather than an annual interest rate. An annual percentage on a four hour loan is not a meaningful number.

When you need it

Assignment is prohibited. Bank owned and HUD contracts frequently forbid assignment outright, sometimes with a deed restriction on resale within a set period. Read the addendum before you market the deal, not after.

The spread is large. A $60,000 assignment fee on a settlement statement can blow up a deal that would close without comment as two transactions. Some title companies also decline to handle large assignments as a matter of policy.

You do not want the spread visible. In an assignment, the end buyer sees what you paid. Some buyers walk on principle. A double closing keeps the two contracts separate.

Your end buyer's lender objects. Some lenders will not finance the purchase of an assigned contract, and some appraisers flag the A to B price as a transaction concern.

What I need from you

The underwriting is unusual because the lender is not underwriting a hold. They are underwriting whether the B to C closing is real.

Both contracts. A to B and B to C, executed.
Proof the end buyer can close. Their proof of funds, or a lender commitment letter if they are financed. This is the file's central risk.
A title company that will handle a double closing. Not all will, and not all states treat them the same way. Confirm before you contract.
Both closings scheduled. Ideally same day, and in the right order.

The end buyer is the whole file. If their financing collapses, you own a property you were never planning to keep, funded by a loan that expects repayment immediately. Verify their proof of funds yourself. A screenshot is not verification.

What it costs, and how to price it

Transactional funding is quoted as a flat fee against the A to B purchase price. Because the hold is same day, the fee does not scale with time.

Price the deal as: B to C price, minus A to B price, minus the funding fee, minus both sets of closing costs, minus any recording or transfer taxes that apply twice. Transfer taxes are the item most often missed, and in some jurisdictions they are charged on both legs, which can consume a thin spread entirely.

If what remains is not worth the execution risk, take the assignment where you can get it.

Practical sequence

Get the A to B property under contract, and read the assignment clause.
Confirm a title company that will close both legs.
Find the end buyer and execute the B to C contract.
Verify the end buyer's funds or lender commitment independently.
Submit both contracts for transactional funding.
Schedule both closings, same day, correct order.
A to B funds, B to C funds, loan repaid, spread released.

Where it fits

Transactional funding is a narrow instrument. It solves exactly one problem: you need to take title briefly and you do not want to use your own capital to do it.

If you are holding the property for any length of time, even a few weeks, this is the wrong product and a short term bridge loan is the right one. The requirements for that are different, because the lender is then underwriting a hold and an exit rather than a same day payoff.

If you have both contracts in hand, send the deal over. Terms inside 24 to 48 hours.

Common questions

What is transactional funding?: Short term capital that funds the first leg of a double closing. The lender covers the A to B purchase, the B to C sale closes shortly after, and the loan is repaid from those proceeds. The hold is usually same day.
When do you need a double closing instead of an assignment?: When the seller or their lender prohibits assignment, when the property is bank owned with deed restrictions, or when you do not want the end buyer to see your spread. Some title companies also decline to close large assignments.
Do you need proof of funds for transactional funding?: You need to show the end buyer can close their leg. On your side the lender underwrites the deal itself, so what matters is the contracts, the closing date, and the spread.
What does transactional funding cost?: It is priced as a flat fee rather than an annual rate, because the hold is measured in hours. Cost is driven by the size of the A to B purchase, not by how long the money is out.

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