Transactional funding is short-term capital, usually held for a single day, that pays for the first leg of a back-to-back real estate closing. It exists so a wholesaler can buy a property and resell it the same day without tying up any of their own cash.
If you have ever found a deal, put it under contract, and lined up a buyer willing to pay more, you already understand the opportunity. Transactional funding is simply the tool that lets you capture the spread between what you pay and what your buyer pays, cleanly, on paper, with your name on the deed for the moment it needs to be there.
The double close, explained
Transactional funding only makes sense inside a specific structure called a double close, or back-to-back closing. There are three parties:
- A is the original seller you have under contract.
- B is you, the investor.
- C is your end buyer, who is paying more than you are.
Two separate transactions close in sequence. First the A to B closing, where you buy from the seller. Then the B to C closing, where you sell to your end buyer. The money from the B to C sale is what repays the funding used for the A to B purchase. Your profit is the difference, and it lands in your pocket at the closing table.
You need cash to own the property for the few minutes or hours between the two closings. Transactional funding is that cash. It comes in for the A to B leg and gets paid back out of the B to C leg, often on the very same day.
Why you would need it
The obvious answer is that you may not have the full purchase price sitting in the bank, and even if you do, spending it here is rarely the smart move. But there are sharper reasons investors choose to double close instead of simply assigning a contract.
Assignment restrictions
Many contracts, bank-owned deals, and some end buyers do not allow you to assign your contract to another party. A double close is a clean, fully legal alternative. You are not assigning anything. You are buying and then selling, two real transactions.
Protecting your spread and your privacy
When you assign a contract, your assignment fee is visible on the closing statement. Everyone at the table sees exactly what you are making. With a double close, the seller sees their price, the buyer sees their price, and your margin stays your business. If your spread is large, this alone is worth it.
Keeping your own capital free
Even a well-funded investor has better uses for their money than parking it in a deal that will resell in hours. Using transactional funding means your cash stays available for earnest money, marketing, rehab projects, or the next opportunity. You are renting the capital for a day instead of committing it.
When to use it
Transactional funding is the right tool when all of these are true:
- You have a property under contract to buy, and a separate buyer under contract to purchase it from you at a higher price.
- Both closings can happen close together, ideally the same day or within a day or two.
- Your end buyer has their funds ready, whether that is their own cash or a lender who is cleared to fund.
- You want to avoid an assignment, keep your margin private, or simply not use your own money.
It is not the right tool for a long hold, a rehab, or a deal where your buyer is still weeks from being ready. Those call for different products, like a hard money loan. Transactional funding is built for speed and for deals that are already lined up on both ends.
How it works, step by step
You submit the deal
You send over the basics: the property, your purchase price, your resale price, the closing date, and the title company handling the transaction. There is no credit check and no income verification.
We review and confirm the docs
We confirm the deal is real and the paperwork is in order on both legs, the A to B side and the B to C side. Clean docs are what protect everyone, so we fund only when both closings are ready to go.
We wire the A to B funds
We send the money to the title company to fund your purchase from the original seller. You now own the property. At Key Partners Funding this can happen in as little as 24 hours, with no money out of your pocket.
Both closings complete
The A to B closing records, then the B to C closing records. Your end buyer's payment comes in, and the funding we advanced is repaid directly from those proceeds at the table.
You keep the spread
After the funding is repaid and the small transactional fee is covered, the difference between your buy price and your sell price is your profit. You never touched your own capital.
What it costs
Transactional funding is priced as a flat fee for the use of the capital, not as a long-term interest rate, because the money is only out for a day. There is no interest clock running for months, no points structured like a rehab loan, and no cost at all if the deal never closes.
At Key Partners Funding the structure is simple. We fund 100% of the A to B purchase price, there is no minimum and we go up to $1,000,000, there are no upfront fees, and there is no credit check or income documentation. If your deal falls through before closing, you pay nothing.
- Transactional funding pays for the A to B leg of a same-day double close, then gets repaid from the B to C sale.
- Use it to close deals you cannot assign, to keep your margin private, and to avoid using your own cash.
- It only fits deals that are already lined up on both ends and can close back to back.
- Priced as a flat fee, funded in as little as 24 hours, and free if the deal does not close.
Common questions
Do I need good credit?
No. Transactional funding is secured by the deal itself, not your credit profile. We do not run credit or verify income.
What if my buyer backs out?
If the B to C closing does not happen, the funding does not get advanced, and you owe nothing. We fund only when both sides are ready.
How fast can you fund?
As little as 24 hours once the deal and documents are confirmed. Send it early and clean and it moves fast.