Double closing funding in real estate is a short-term funding solution that allows an investor or wholesaler to purchase a property and immediately resell it, often the same day without using their own cash.
For newer investors, this concept usually comes up when a deal is under contract, the spread looks solid, but there isn’t enough capital available to close the first transaction.
This page breaks down what double closing funding is, how it fits into real estate investing, and why it’s commonly used by wholesalers and land investors.
What Does “Double Closing Funding” Mean?
A double closing involves two separate transactions:
- A → B: The seller sells the property to you
- B → C: You resell the property to your end buyer
Double closing funding provides the money needed to complete the A → B purchase, so the deal can move forward and the resale can occur.
Without funding, many investors would be forced to:
- Assign the contract (if allowed), or
- Walk away from the deal
Double closing funding keeps the transaction intact while preserving control and flexibility.
How Double Closing Funding Works in Real Estate
At a high level, double closing funding works like this:
- You secure a property under contract at a favorable price
- You line up an end buyer willing to purchase at a higher price
- Short-term funding is used to close the first transaction
- The second closing occurs immediately after
- Funding is paid back from the resale proceeds
Because the funding is tied directly to the transaction, approval is based on the strength of the deal, not long-term income or credit qualifications.For a full breakdown of the mechanics, see the pillar guide:
Transactional Funding for Double Closings: The Complete Guide for Real Estate Investors
Why Investors Use Double Closing Funding
Newer investors often assume double closings are only for advanced operators. In reality, many first-time wholesalers use this structure early on.
Common reasons investors use double closing funding include:
- Not having enough cash to close the purchase
- Wanting to keep profit margins private
- Working with sellers who don’t allow assignments
- Selling to buyers who require a clean title transfer
- Handling land or commercial deals
In these situations, funding makes the transaction possible without changing the deal structure.
Double Closing Funding vs Using Your Own Cash
Using personal cash may seem simpler, but it comes with trade-offs:
- Capital gets tied up
- Liquidity is reduced
- Fewer deals can be done at once
Double closing funding allows investors to:
- Preserve cash for other opportunities
- Scale deal volume
- Reduce personal exposure
This becomes especially important as deal sizes increase or multiple transactions overlap.
Who Typically Uses Double Closing Funding?
Double closing funding is commonly used by:
- Real estate wholesalers
- Land investors
- Off-market deal specialists
- Investors working with estate or probate properties
- Commercial or mixed-use investors
It’s particularly useful when timing, privacy, or deal structure prevents a simple assignment.
Is Double Closing Funding the Same as Transactional Funding?
In most cases, yes.
The terms are often used interchangeably. Transactional funding is the broader category, while double closing funding refers specifically to how it’s applied in a back-to-back transaction.
If you’re deciding whether funding is right for your deal, the next step is understanding how investors close without using personal cash.
➡ Next: How to Fund a Double Closing Without Using Your Own Cash
Frequently Asked Questions About Double Closing Funding
What is double closing funding in real estate?
Double closing funding is short-term capital used to purchase a property so an investor can immediately resell it to an end buyer, often on the same day, without using personal funds.
Is double closing funding the same as transactional funding?
In most cases, yes. Transactional funding is the broader term, while double closing funding describes how that funding is used in a back-to-back real estate transaction.
Do I need good credit to get double closing funding?
Typically no. Approval is usually based on the strength of the deal and the end buyer’s ability to close, not the investor’s personal credit or income.
Can wholesalers use double closing funding?
Yes. Wholesalers commonly use double closing funding when assignments are not allowed or when they want to keep profit margins private.
How long does double closing funding last?
Most double closing funding is used for same-day closings or very short holding periods, usually 24 to 48 hours.