← Back to BlogMay 20268 minDan White
Transactional Funding for Real Estate: How Double Closes Work
Transactional funding lets wholesalers execute a double close — buying from the seller and selling to the end buyer on the same day — without using their own capital. The funder provides the money for the A-to-B leg, you repay it from the B-to-C proceeds hours later.
Market Context
Live Market Data
Washington, DC Housing Market
Cool Market
Data through Mar 2026
Median Sale Price
$590,000
+0.8% YoY
Median Days on Market
44 days
lower = faster market
Sale-to-List Ratio
99.7%
buyers' market
Homes Sold
4,457
last reported month
Source: Redfin Data Center. Updated monthly. Data reflects Washington, DC residential sales.
redfin.comWhy Wholesalers Use Double Closes
Assignment is simpler — but the seller sees your profit on the HUD statement. A double close keeps your spread private. For large assignment fees ($50,000+) or in states where assignment is restricted, a double close is the cleaner option.
How Transactional Funding Works
- You set up two closings: A-to-B (you buy from seller) and B-to-C (you sell to end buyer), same day
- Transactional funder provides the A-to-B purchase funds at closing
- B-to-C closing funds repay the transactional lender plus their fee
- You keep the spread between A-to-B and B-to-C prices
Cost of Transactional Funding
Typically 1–2% of the A-to-B purchase price, or a flat fee of $1,500–$3,000. On a $200,000 A-to-B transaction, that's $2,000–$4,000 to keep your spread private. Worth it for large fees; add it to your cost analysis for smaller deals.
Calculate Your Net on a Double Close
FreeDealCalc models wholesale net proceeds including transactional funding costs — see your actual take-home. Free.
Model My Wholesale Deal Free →Requirements
Both closings must happen the same day, typically at the same title company. Title company must be comfortable with back-to-back closings — not all are. Confirm with your title company before structuring the deal this way. The end buyer typically can't use conventional financing (they need to see clear title).
Dan White is a licensed Virginia real estate agent at Pearson Smith Realty and founder of FreeDealCalc.com. He has been investing in real estate for 20+ years.