When you’re working in real estate—especially wholesaling—closing deals quickly is often the key to success. That’s where transactional funding comes in. Designed for short-term use, this funding method helps investors close deals fast—often within the same day—without using their own cash. It’s particularly useful for wholesalers who need to do a double closing.
Let’s take a look at the pros and cons of using transactional funding, and how to know if it’s the right move for your next investment.
What Is Transactional Funding?
Transactional funding is a short-term loan used by real estate investors to finance the purchase of a property when a buyer is already lined up. The loan typically lasts just a few hours or one business day—just enough time to buy the property and immediately resell it.
This is often used in wholesale deals, where an investor buys and sells a property on the same day for a profit. A transactional lender provides the funds needed for the first purchase, and the loan is repaid once the property is sold to the end buyer.
Pros of Transactional Funding
1. Speed and Simplicity
Also known as same day transactional funding or flash funds, this method is incredibly fast. With minimal paperwork and no need to verify income or credit, it’s a quick solution for experienced investors.
2. 100% Financing
Unlike traditional loans, transactional funding covers the full purchase price. You won’t need to bring your own money to the table.
3. No Credit Checks
Your credit score or financial history won’t affect your eligibility. What matters most is having a solid deal and a buyer lined up.
4. Low Risk
Because the money is only used for a short time and isn’t tied up in long-term debt, there’s minimal financial risk.
5. Great for Wholesalers
Wholesalers transactional funding gives you the capital you need to complete double closings without risking your own funds.
Cons of Transactional Funding
1. You Must Have a Buyer
This type of funding only works if you already have a signed contract with an end buyer. No buyer, no loan.
2. It’s Not Free
Most lenders charge between 2% to 12% of the loan amount in fees. While these can often be built into the deal, they do affect your profit margins.
3. Possible Delays
If title issues, buyer delays, or contract changes arise, they can interrupt the closing process and lead to penalties or canceled deals.
4. Not Ideal for Beginners
Because deals move quickly, you need to be organized and experienced. A beginner without proper knowledge might find the speed overwhelming.
Choosing the Right Transactional Lender
Not all transactional funding providers are created equal. When choosing a lender, look for:
- Fast approvals and clear communication
- Transparent fees and no hidden charges
- Proof of funds letters, if needed
- Experience with wholesalers
- Flexible loan structures
- Availability in your market
Having a trusted lender can make or break a deal—especially when every hour counts.
Ready to Move Fast? Consider DoubleClose.com
If you’re searching for flash funds to complete your wholesale deals, DoubleClose.com is here to help. We specialize in same day transactional funding for real estate investors and wholesalers nationwide.
Whether you’re closing a $100K deal or need $1 million+ in funding, we can support you with a smooth and simple process. No credit checks, no delays—just quick, reliable funding.
Reach out to DoubleClose.com today and let us help you close your next big deal with confidence!