Transactional funding is the shortest loan in real estate — often measured in hours. It exists to let a wholesaler close a purchase and a resale on the same day without using their own money, in situations where simply assigning the contract is not permitted or not desired. It carries the highest bid values of any term in the creative-finance cluster, which tells you it reaches people doing real volume.
What it funds
A double close, also called an A–B–C transaction. You (B) buy from the seller (A) and immediately resell to the end buyer (C). Transactional funding provides the cash for the A–B leg, and is repaid within hours from the proceeds of the B–C leg. The lender is not underwriting you or the property in the usual sense — they are underwriting whether the second closing is genuinely funded and ready.
Why not just assign the contract
Assignment is simpler and cheaper when it is available. It is not always. Some end buyers — particularly institutional buyers and lenders on the C side — will not accept an assigned contract. Some bank-owned and HUD contracts prohibit assignment outright. And a double close keeps your margin off the settlement statement the seller and end buyer see, which is sometimes the deciding factor on a large spread.
What it costs
Typically charged as a percentage of the funded amount rather than as interest, since the term is hours — commonly 1–3%, with minimum fees that make small deals uneconomic. There is no monthly payment because there is no month. The advertiser bid range on this term runs up to $51.00 a click, the highest measured anywhere in this research, which is a reasonable proxy for how valuable these borrowers are.
The conditions that actually matter
The end buyer’s funds must be real and ready — proof of funds, or a lender clear-to-close. Both closings must occur at the same title company, and that company must be comfortable with a double close, because many are not. The two contracts must be structured so the timing works. And the funder will want to see the C-side documentation before committing. Nearly every failed transactional deal fails because the C-side financing was not as solid as represented.
Where it sits relative to other short-term money
Transactional funding is for same-day, back-to-back closings only — it is not a substitute for hard money, which funds acquisition and renovation over months. If you need to hold the property for any period at all, even days, this is the wrong product. If you are keeping the property as a rental rather than reselling, the route is ordinary investor financing and a DSCR loan after stabilisation.
Transactional Funding for Double Closings FAQ
Hours, typically. Funded at the A–B closing and repaid from the B–C closing the same day. Some funders allow a day or two at higher cost.
Commonly 1–3% of the funded amount, often with a minimum fee. It is priced as a flat charge rather than as interest because there is no time component.
Generally not. The funder is underwriting the end buyer’s ability to close, not yours.
Assignment is cheaper where permitted. Some contracts prohibit it, some end buyers and their lenders reject it, and a double close keeps your spread off the other parties’ settlement statements.
No. Many will not. Confirm with the title company before you contract, because finding one late is the most common cause of a collapsed deal.
You own a property you financed for hours with no exit, which is the central risk. Verify the C-side funds before the A-side closing rather than relying on assurances.