Quick answer
A Texas double close usually requires a confirmed end buyer ready to close at title, the A-B and B-C contracts, and a title company that handles double closes. Same-day funding may be available, subject to a confirmed end buyer at title and to review and approval. Transactional funding is for non-owner-occupied investment property.
Transactional funding helps a Texas wholesaler complete a double close — funding the purchase so it can be immediately resold to a confirmed end buyer. This checklist covers what usually has to line up. It complements our transactional funding checklist resource page, and for the broader review picture, see hard money loan requirements in Texas.
What Transactional Funding Is
Transactional funding is short-term funding for a double close on non-owner-occupied investment property. It funds the leg where you buy from the seller, so you can immediately resell to your end buyer. Because the resale is what repays it, a confirmed end buyer ready to close is at the center of the transaction.
How a Double Close Works
A double close is two linked closings, often called an A-B-C close:
- A to B — the seller (A) sells to you (B)
- B to C — you (B) sell to the end buyer (C)
Transactional funding helps fund the A-B leg so the B-C leg can close. The two closings are coordinated at the title company, often on the same day.
What Usually Has to Line Up
Use this as a checklist for a clean double close. Everything is subject to review and approval.
| Item | What it means | Why it matters |
|---|---|---|
| Confirmed end buyer | A real B-C buyer who is ready to close at title | The double close depends on it |
| A-B contract | Your purchase contract with the seller | Sets up the first closing |
| B-C contract | Your sale contract with the end buyer | Sets up the second closing |
| Title company | A title company that handles double closes | Coordinates both closings |
| Coordinated timing | Both closings lined up at title | The legs close together |
| Documentation | Contracts, contacts, and confirmations | Keeps the closing moving |
The End Buyer at Title
The confirmed end buyer is the heart of a double close. Because the B-C sale is what repays the funding, the end buyer needs to be real and ready to close at title. Same-day funding may be available, subject to a confirmed end buyer at title and to review and approval. Surfacing the end buyer and the title company early helps the whole transaction move.
Documents for a Double Close
Depending on the transaction, Cedar Top may request additional items. For a fuller, category-by-category list, see the hard money loan documents checklist. Items can include:
Contracts
- The A-B purchase contract
- The B-C sale contract
Parties and title
- The title company contact
- End-buyer confirmation
Property information
- The property address
- Any items the title company requests
What Can Stop a Double Close
These do not always stop a transaction, but they can stall it or require more documentation:
- No confirmed end buyer, or a buyer who is not ready
- Contracts that are not in order
- An unclear title company contact
- Title questions
- Incomplete or last-minute documentation
Costs and Timing to Plan For
A transactional funding request may involve fees and items shown in the term sheet, along with the two sets of closing costs in a double close. Same-day funding may be available, subject to a confirmed end buyer at title and to review and approval, and exact timing depends on the transaction and the title company.
Nothing in this article is a quote, and the term sheet and final loan documents control. For the program details, see the transactional funding page and compare loan programs.
Common Wholesaler Mistakes
A few things tend to stall a double close:
- Lining up funding before the end buyer is confirmed
- Contracts that do not match the transaction structure
- Choosing a title company that does not handle double closes
- Leaving the title company contact unclear
- Sending incomplete or last-minute documentation
Example Double Close Scenarios
These are general, illustrative scenarios, not real customers, quotes, or commitments to lend. Every transaction is reviewed on its own, subject to review and approval.
- A same-day double close. A wholesaler has a confirmed end buyer, A-B and B-C contracts, and a title company that handles double closes lined up for the same day.
- A coordinated file. A wholesaler surfaces the end buyer and title company early, with contracts in order, so the legs close together.
- A back-to-back resale. A wholesaler funds the A-B leg through transactional funding and resells to the confirmed end buyer on the B-C leg.
In each scenario, the transaction depends on a confirmed end buyer at title and a clean, coordinated file, subject to review and approval.
Related resources
Have a Texas Double Close Coming Up?
If you have a non-owner-occupied Texas double close, Cedar Top can review the transaction and financing request. Review is subject to a confirmed end buyer at title, documentation, and approval.