Checklist
Transactional Funding Checklist
Here is what usually has to line up for a double close. Every deal is different, so we may need more once we see yours.
Transactional funding works when the deal is ready to close on both ends. The items below usually have to be in place. This is not the whole list, and every deal is different.
What usually has to line up
These are illustrative. Every deal is different, so the exact requirements depend on the transaction.
- Executed A-B purchase contract
- Executed B-C sale contract with your end buyer
- A title company that can coordinate same-day, back-to-back closings
- Written confirmation that end-buyer funds are ready at title
- Matching closing dates for the A-B and B-C transactions
- Your entity documents
- Clear communication with all parties on timing
How a double close works
Most transactional funding is used for an A-B-C double close. You have a property under contract from a seller (A) and an end buyer (C) already lined up. The funding covers the money to close the A-B leg, your purchase, just long enough to immediately resell to C. The loan is repaid the same day from your buyer's funds.
Because the whole thing turns on your end buyer closing on time, two things matter most: a title company that can run both closings back to back on the same day, and written confirmation that the end-buyer funds are sitting at title before anyone closes. Get those in place and the rest of the checklist tends to fall into line. If the B-C side is not solid, the chain breaks, which is why we ask about it first.
This is built for wholesalers and investors who have the buy and the sell ready at the same time. If your buyer needs longer to close, a short hard money loan is usually the better fit. Not sure which you need? Tell us about the deal and we will point you the right way.
Transactional funding FAQs
What is transactional funding?
Short-term money that funds the first leg of a back-to-back closing and gets repaid the same day from your end buyer. It lets you close the purchase from your seller and immediately resell to your buyer without using your own cash for the buy.
How long is the money actually outstanding?
Usually hours. In a true double close the A-B and B-C transactions close the same day, so the funds are out and back the same day. Because of that short window, transactional funding is priced differently from a typical hard money loan.
Do I need my own money to do a double close?
Often very little for the funded leg, but you do need a real end buyer with funds confirmed at title. The deal only works if your buyer closes, so we want written confirmation that their money is ready before we fund. We may also ask for your entity documents.
What does transactional funding cost?
A flat fee for the same-day use of the money, rather than a monthly interest rate. See our transactional funding program for current pricing, or send us the deal and we will quote it.
How fast can you fund a double close?
We can close in as little as 24 hours once the title work is in order. The faster the contracts, title coordination, and end-buyer confirmation come together, the faster we can fund.
Transactional funding for Texas double closings
We can close in as little as 24 hours pending title work.