What is Transactional Funding?
Transactional funding is a short-term loan — typically lasting hours, not days — used to fund the A-to-B leg of a double close. The wholesaler borrows from the transactional lender to close with the seller, then immediately resells to the end buyer and repays the loan from those proceeds.
Transactional funding only works when the B-to-C transaction is already lined up — most lenders require proof of the end buyer's funds before they'll fund the A-to-B. The wholesaler is essentially using the lender as a money-mover between the two closings.
Typical pricing: 1-2% of the loan amount as a flat fee, with no interest because the loan only exists for hours. On a $100,000 A-to-B, transactional funding costs $1,000-$2,000. That's additive to the standard double-closing costs.
Transactional funders are specialized — most banks won't do this. A handful of national lenders (Equity & Help, Best Transaction Funding, Direct Money Sources) dominate the market.
Concepts that connect.
A double close (also called a simultaneous close) is a wholesaling exit where the wholesaler actually buys the property from the seller and immediately resells to the end buyer in two back-to-back transactions. Used when an assignment isn't allowed or when the wholesaler wants to hide their margin.
Wholesaling is the real-estate strategy of putting a distressed property under purchase contract and assigning that contract to a cash buyer for a fee. The wholesaler never owns the property — they're paid for connecting motivated sellers to investor buyers.
An assignment fee is the amount a wholesaler is paid for assigning the rights of a real estate purchase contract to an end buyer. Typical fees in 2026 range from $5,000 to $25,000 on single-family deals, depending on the spread and the market.
The Weekly Deal Memo
One market memo, one off-market playbook, one tool review. Every Friday. Free.
No spam. Unsubscribe anytime.