Transactional funding for double closings is one of the most practical tools real estate investors use to close profitable deals without tying up large amounts of personal capital. When structured correctly, it allows you to control properties, protect spreads, and move quickly, even on same-day closings.
This guide walks through exactly how double closing funding works, when to use it, who it’s for, and how to get approved quickly.
What Is a Double Closing?
A double closing (also called a back-to-back closing) is when an investor purchases a property from a seller (A → B) and then immediately sells that same property to an end buyer (B → C), often on the same day.
Instead of assigning the contract, the investor actually takes title briefly and completes two separate transactions.
Why investors use double closings:
- Keep deal margins private
- Work with sellers or buyers who don’t allow assignments
- Close deals that require clean title transfer
- Handle land, commercial, or complex transactions
The challenge is simple: the investor must fund the first purchase before the resale happens.
That’s where double closing funding comes in.
Why Funding Is Needed for Double Closings
In most double closings, the investor doesn’t want to or can’t use their own cash to purchase the property first.
Common reasons funding is required:
- Purchase price exceeds available cash
- Capital is tied up in other deals
- Deal needs to close fast
- The investor wants to preserve liquidity
- The spread is large enough to justify short-term funding
Traditional lenders don’t work here. Banks won’t fund same-day purchases, and hard money lenders usually require seasoning or longer hold periods.
Transactional funding is specifically designed to solve this problem.
How Transactional Funding Works
Transactional funding is a short-term, deal-specific funding solution used solely to complete the A → B side of a double closing.
Here’s how it typically works:
- You have two contracts
- A → B purchase agreement (seller to you)
- B → C resale agreement (you to end buyer)
- A → B purchase agreement (seller to you)
- Funding covers the A → B transaction
- Funds are wired to closing
- You briefly take title
- Funds are wired to closing
- The B → C transaction closes
- Usually same day or within 24 to 48 hours
- End buyer’s funds pay off the transactional funding
- Usually same day or within 24 to 48 hours
- You collect your profit
- After funding fees and closing costs
- After funding fees and closing costs
Key characteristics of real estate double closing funding:
- Very short term (often same day)
- Asset-backed by the end buyer transaction
- Based on deal structure, not personal income
- No long-term debt or monthly payments
Who Double Closing Funding Is For
Double closing funding is best suited for active investors who understand deal flow and timelines.
Common users include:
- Wholesalers who can’t assign contracts
- Land investors closing larger spreads
- Investors working with institutional or retail buyers
- Commercial or mixed-use deal makers
- Investors scaling volume without tying up cash
It’s especially useful when:
- The seller requires confidentiality
- The buyer is using conventional or delayed funding
- The transaction involves land, estates, or off-market properties
Assignments are prohibited or discouraged
Risks, Rules, and Common Mistakes
While transactional funding is powerful, it’s not forgiving if mishandled.
Key rules to understand:
- The end buyer must be ready and able to close
- Contracts must be clean and assignable to a double close
- Title companies must support back-to-back closings
- Funds must be used only for the transaction
Common mistakes investors make:
- Not confirming buyer funds before closing
- Assuming all title companies allow double closings
- Waiting too long to line up funding
- Misunderstanding fees or timing requirements
- Trying to use transactional funding like long-term capital
This type of funding is precise. When done right, it’s seamless. When done wrong, it can delay or kill the deal.
When to Use Double Closing vs Assignment
Both strategies have a place. The right choice depends on the deal and the parties involved.
Use a double closing when:
- You want to protect your profit margin
- Assignments are not allowed
- You’re working with sensitive sellers
- The buyer requires a clean chain of title
- You’re dealing with land or commercial property
Use an assignment when:
- The seller allows it
- The buyer is comfortable with it
- Speed and simplicity matter more than privacy
- The spread is modest
If funding is available, a double closing often provides more control and flexibility.
How to Get Approved Quickly for Transactional Funding
Speed matters. The best approvals happen when investors are prepared.
What funding providers typically need:
- Fully executed A → B and B → C contracts
- Settlement statements or estimated closing numbers
- Buyer proof of funds or lender approval
- Title company contact and closing date
Tips to move faster:
- Work with title companies familiar with double closings
- Line up funding early, not at the last minute
- Communicate clearly and proactively
- Use repeatable deal structures
The smoother your paperwork, the faster funding can happen.
Request Transactional Funding
If you’re working on a deal that requires double closing funding or want to understand whether transactional funding makes sense for your situation, it helps to talk through it early.
Whether it’s residential, land, or commercial, having the right funding structure in place can be the difference between closing smoothly and missing the opportunity.
Request transactional funding here to review your deal, confirm feasibility, and move forward with confidence.