Transactional Funding for Wholesalers: Fees, Timeline and When a Double Close Wins

Your end buyer is wired and ready, but the seller's contract says no assignments, or the spread is big enough that a seller who sees it on the settlement statement may walk. You need to own the house for an hour. Transactional funding is how operators do that without tying up their own cash, and it is only worth paying for in a few specific situations.

Key points

• Transactional funding is a same-day or very short-term loan that pays for your purchase from the seller (the A to B closing) so you can resell to your end buyer (the B to C closing) and repay the lender from that sale.
• Published fees on lender pages we checked run from 0.75% to 3% of the A to B price, with published minimums of $600 to $1,000 where a minimum is listed, as of November 2026.
• You need a signed end buyer contract, verified end buyer funds and a title company or closing attorney that runs double closes.
• A double close beats an assignment when the contract cannot be assigned, when a lender or title company requires you on title, or when the spread is large enough that privacy protects the deal.
• Transactional funding pays for one closing. It does not fund your marketing or close the 30 to 90 day gap between a signed contract and a check.

What is transactional funding?

Transactional funding is a short-term loan that covers 100% of your purchase price from the seller so you can close a double close, where you buy a property and resell it to your end buyer, usually on the same day. The lender is repaid out of your end buyer's money at the second closing, along with its fee.

In wholesale shorthand, A is the seller, B is you and C is your end buyer. The lender funds A to B. The end buyer's funds land in escrow for B to C. Title closes both, the lender takes its principal and fee, and you keep the spread. Most loans run 24 to 48 hours. Some lenders offer extended terms from 30 to 180 days.

It exists because many title companies will not use the end buyer's money to fund your purchase from the seller. Our guide to dry closings versus wet closings explains why funding timing matters at the closing table.

How much does transactional funding cost?

Transactional funding costs about 0.75% to 3% of your purchase price from the seller on the lender pages we checked, usually with a minimum fee, plus a second set of closing costs that an assignment would not create. The table converts each lender's published terms into dollars on the same two deals.

Pricing as of November 1, 2026, taken from each lender's own page. Lenders quote by deal, so treat these as published starting points, not offers. A lender's place on this list is not a recommendation; each is included because its terms are public.

The fee is only part of the bill. A double close is two closings, so expect title, escrow, recording and any transfer taxes on your purchase as well as your sale, plus wire fees and any per-diem or extension charge if the second closing slips. Ask your title company for a quote on both sides before you choose this route.

Transactional funding timeline, step by step

A clean transactional funding deal takes a few days to set up and one day to close, as long as your end buyer is real and your title company is ready. The order matters more than the speed.

1. Sign the A to B contract with closing flexibility and every disclosure your state requires.
2. Sign the B to C contract with your end buyer and collect their earnest money. A buyer with nothing at risk is not a buyer a lender will fund against.
3. Pick the closing agent first. Confirm the title company or attorney runs double closes and knows which lender you will use.
4. Send the lender package: both contracts, end buyer proof of funds or loan approval, the title commitment, your entity documents and closing agent details. Requity says proof of funds letters typically go out within hours of a complete package.
5. Clear title on both files. Liens, probate paperwork and missing signers have to be solved before the closing day, not on it.
6. Closing day: the end buyer's funds reach escrow, the lender wires your purchase money, A to B closes, then B to C closes and pays off the lender.
7. If B to C slips, the loan stays out. Expect per-diem charges, an extension fee or a forced conversion to a different loan product.

Title is where the calendar breaks.

One Hesel client spent about a month and a half on title work for an inherited property before he could assign it (Dawson on the inherited church deal). A same-day loan does not help when the file needs six weeks. One example, not a typical timeline. That was one of our best results, not a typical one. Outcomes depend on market, budget, offer and follow-up speed.

Title and escrow requirements

Transactional funding requires a title company or closing attorney that will handle both closings, confirm the end buyer's funds before the lender's money moves, and repay the lender out of the second closing. Check each lender's specific list before you send a package.

• A double-close friendly closing agent. Not every title company will do it. Ask before you sign the end buyer.
• End buyer funds in escrow before your loan funds. EquityMax describes the closing agent confirming the end buyer's funds have arrived before it approves the wire.
• No borrowing your end buyer's money for your purchase. DKC Lending notes that in Florida investors may not use the end buyer's purchase money to buy from the original seller. Rules vary by state and by title company.
• Two settlement statements. Your purchase price shows on one and your resale price on the other, which is why the spread stays out of the seller's view.
• Your entity on title. Lenders issue proof of funds to the buying entity named on the A to B contract, so the names have to match.

For how title, escrow and transaction coordination fit together across a deal, see our guide to real estate transactional services.

When a double close beats an assignment

A double close beats an assignment only when the assignment is blocked, when someone in the deal requires you on title, or when showing the spread puts the deal at risk. In every other case, an assignment is cheaper and simpler.

Use transactional funding and a double close when:

• The seller's contract, a bank addendum or a listing agent's form prohibits assignment.
• The end buyer's lender or the title company requires you to hold title before the resale.
• The spread is large next to the purchase price and a seller or buyer seeing it would likely cause a fight or a cancellation.
• You want to sell to a buyer who will not accept an assignment.

Now run the break-even. Say you buy at $150,000 and resell at $180,000, a $30,000 spread. Funding at 1% to 3% costs $1,500 to $4,500, which is 5% to 15% of the spread before the second set of closing costs. On a $15,000 spread, the same funding eats 10% to 30%.

For context, one Hesel client reported average revenue of about $23,000 per deal (Brandy Pollock on his deal averages). That is one operator's self-reported average. That was one of our best results, not a typical one. Outcomes depend on market, budget, offer and follow-up speed.

A simple rule: if funding plus the extra closing costs would take more than a small slice of your spread, assign. Pay for privacy when the spread is big or when the contract leaves you no choice.

Brandy Pollock, the client above, puts a number on it. A double close adds costs, so he assigns by default: "if my company's earning anything between zero and 60,000 on a wholesale fee, I don't need to double close." He double closes when the fee reaches six figures, a rule he shared in an August 2026 Office Hours session.

When transactional funding fails

Transactional funding fails when the second closing cannot happen on schedule, and the most common reasons are the end buyer's financing, title problems and rules you did not check.

• FHA end buyers. Under the FHA property flipping rule, a home is not eligible for an FHA-insured loan if the resale contract is signed 90 days or less after the seller acquired it, with exceptions such as inherited property (24 CFR 203.37a). A same-day double close to an FHA buyer does not work. Cash and private-lender buyers fit this tool.
• Soft end buyers. A buyer with no deposit at risk or an unverified loan is the reason most lenders demand proof of funds first.
• Title surprises. A second lien or a missing heir found on closing day turns a 24-hour loan into a per-diem bill.
• State wholesaling rules. A double close does not automatically take you outside your state's wholesaling disclosures or licensing rules. Ask a local attorney how your state treats it.

Some operators skip the funding when the end buyer uses FHA. In an April 2026 Office Hours session, Nico Sharma, a broker who owns Top Brokerage and Top Buyers, said he can double close to conventional and VA buyers only with his own transactional funding, and not to FHA buyers because of seasoning rules. So he novates, which "allows me to avoid having to get transactional funding."

The trade-off, in his words: "it does still show the seller what I'm going to make." On a novation the fee sits on the seller's side of the settlement statement, so take that route only if your seller conversation already covered your fee.

What transactional funding does not fix

Transactional funding pays for one closing for a day or two. It does not fund your marketing, payroll or the weeks between a signed contract and your fee hitting the bank.

That gap is where operators get squeezed. In Hesel's planning guidance, a wholesale deal typically closes about 30 days after the contract and a novation about 45 days after, so cash from a Meta campaign arrives one to two months after launch at best.

In one Florida account, the first contract came in month 2 of the campaign and the first check arrived in month 4.

Plan for it. Budget two to three months of marketing before the first fee arrives, reinvest a fixed share of every fee into the next month's campaigns, and raise spend in steps. That is the deal-financed approach Hesel teaches, and it matters more to a growing operator than the cheapest transactional lender.

Pick the exit on the seller call, not at the title company

The best time to decide between an assignment, a double close or a novation is the first seller conversation, because that is when you learn the mortgage balance, the liens, the timeline and who is on title. Hesel's ISA script asks about the timeline, mortgage and liens before an appointment is booked, and the acquisitions discovery call confirms who else has to sign.

Hesel teaches clients an exit ladder: cash as-is, cash after a cleanup, novation, creative terms, then a referral to a licensed agent. A same-day double close only serves the first two rungs. If the seller's number only works at a retail price, the answer is usually a novation, which runs on a 60 to 120 day clock and needs its own agreement. See how to close novation deals.

The same thinking applies on the buyer side. A deep cash buyers list is what makes a same-day resale realistic, and our post on mastering dispositions nationwide covers how operators build one. For the full deal flow, start with our step-by-step wholesaling guide.

More contracts worth double closing starts upstream

Transactional funding protects a spread. It cannot create one. Spreads come from sellers who raised their hand, got a call in minutes and heard an offer that solved their problem before four other investors called.

Hesel runs motivated seller campaigns on Meta, Google and YouTube, and our ISA and appointment setting team turns seller inquiries into booked appointments for your acquisitions team. If you want more contracts with spreads big enough to choose your exit, book a strategy call and we will look at your cost per contract and your market.

Frequently asked questions

What is transactional funding in real estate?

Transactional funding in real estate is a short-term loan, usually 24 to 48 hours, that pays an investor's full purchase price from the seller so the investor can resell to an end buyer in a double close. The lender is repaid from the end buyer's funds at the second closing, plus a fee.

How much does transactional funding cost?

Transactional funding costs about 0.75% to 3% of the purchase price from the seller on the lender pages we checked in November 2026, often with a $600 to $1,000 minimum. Add a second set of closing costs, wire fees and any per-diem charge if the resale closing slips.

Do I need transactional funding to assign a contract?

You do not need transactional funding to assign a contract. In an assignment, your end buyer closes directly with the seller and pays your fee at closing, so you never buy the property. Transactional funding is only for double closes, where you take title for a short time before reselling.

Does transactional funding require a credit check?

Transactional funding usually does not require a credit check, because the lender is underwriting the deal and the end buyer's funds, not your income. EquityMax lists no credit report required. Requity says no credit check, though its application asks for credit and cash details. Confirm each lender's terms before you apply.

What is extended transactional funding?

Extended transactional funding is a version that stays out for weeks instead of hours, giving the investor time between buying from the seller and closing with the end buyer. DKC Lending lists terms of 30, 60, 90 and up to 180 days. Expect higher costs than same-day funding.

Can I use my end buyer's money to buy from the seller?

You often cannot use your end buyer's money to buy from the seller, because many title companies and some states require your purchase to be funded separately. DKC Lending notes this restriction in Florida. That gap is exactly what transactional funding fills, so ask your title company how it handles back-to-back closings.

Can I double close to a buyer using an FHA loan?

You usually cannot double close the same day to a buyer using an FHA loan. FHA's flipping rule makes a property ineligible if the resale contract is signed 90 days or less after the seller acquired it, with limited exceptions such as inherited property. Same-day double closes fit cash and private-lender buyers.

When should I double close instead of assign?

You should double close instead of assigning when the contract prohibits assignment, when a lender or title company requires you on title, or when the spread is large enough that showing it risks the deal. If none of those apply, an assignment is usually cheaper and faster.

Sources

• Best Transactional Funding, published rates and states (page modified October 2025)
• EquityMax, transactional funding loan terms
• Requity Group, transactional funding for wholesalers (updated October 2026)
• DKC Lending, extended transactional funding and double closing example
• Ramp, transactional funding guide (updated October 2026)
• 24 CFR 203.37a, FHA property flipping restrictions (Cornell Legal Information Institute)
• Dawson, Hesel client, inherited property and title work (YouTube, 1:06)
• Brandy Pollock, Hesel client, average revenue and net per deal (YouTube, 26:00)
• Brandy Pollock, Hesel client, on when he assigns and when he double closes (YouTube, 1:04:42)
• Esteban Andrade on YouTube: Office Hours with Nico Sharma on transactional funding, FHA buyers and novations (April 2026)