Double Close Funding Options
When you cannot assign a contract and need to double close, funding the A-to-B transaction becomes the critical bottleneck. You need enough capital to purchase the property from the seller before your end buyer purchases it from you. Several funding options exist, each with different costs, requirements, and timelines. Choosing the right one depends on the deal size, timeline, and your existing relationships.
Option 1: Transactional funding
The most popular option specifically designed for double closes. See our complete transactional funding guide for details.
- Cost: 1-3% of the loan amount
- Speed: Funding available within 48 hours of approval
- Requirements: Signed A-to-B and B-to-C contracts, buyer proof of funds
- Best for: Same-day or next-day double closes with confirmed end buyers
- Limitation: Requires a confirmed buyer. The lender will not fund without a B-to-C contract in place.
Option 2: Hard money bridge loan
A short-term hard money loan used to fund the purchase, with the intention of repaying when the B-to-C transaction closes days or weeks later.
- Cost: 2-4 points + 10-14% interest (prorated for the short hold)
- Speed: 5-10 business days
- Requirements: Property appraisal or BPO, borrower application
- Best for: Deals where the B-to-C closing may be delayed days or weeks (not same-day)
- Advantage: Does not require a signed B-to-C contract at the time of funding
Option 3: Private money
Borrowing from an individual private lender for the short-term A-to-B funding.
- Cost: Negotiable, typically 1-2 points + 8-12% interest (prorated)
- Speed: 1-3 days for established relationships
- Requirements: Based on your relationship and the lender's comfort level
- Best for: Repeat double closers who have established lender trust
- Advantage: Most flexible terms, lowest cost, fastest funding
Option 4: Self-funding
Using your own cash or business line of credit to fund the A-to-B purchase.
- Cost: Opportunity cost only (no interest or fees)
- Speed: Immediate
- Requirements: Having the capital available
- Best for: Smaller deals where you have the cash and want to maximize profit
- Limitation: Ties up your capital until the B-to-C closes. If the buyer falls through, you own the property.
Option 5: JV with the end buyer
Your end buyer funds the A-to-B purchase directly, and you receive your fee at closing.
- Cost: None (the buyer provides all capital)
- Speed: Depends on the buyer's funding source
- Requirements: A cooperative buyer willing to structure the transaction this way
- Best for: Deals where the buyer has the capital and you have a strong relationship
- Structure: The buyer funds the A-to-B through an escrow arrangement, and your fee is paid from the same escrow at closing
Comparing the options
| Factor | Transactional | Hard Money | Private | Self-Fund |
|---|---|---|---|---|
| Cost | 1-3% | 2-4% + interest | 1-2% + interest | $0 |
| Speed | 48 hrs | 5-10 days | 1-3 days | Immediate |
| Buyer required | Yes | No | Depends | No |
| Capital needed | $0 | $0 | $0 | Full amount |
| Risk if buyer falls through | Low (lender won't fund) | High (you own it) | Medium | High |
Choosing the right option
For most wholesalers, transactional funding is the default choice for same-day double closes. It requires zero capital, covers 100% of the purchase, and the cost is predictable. For deals where the B-to-C closing may be delayed or you do not yet have a confirmed buyer, hard money or private money provides more flexibility at a higher cost.
Related articles
- Transactional Funding: Complete Guide
- How to Double Close
- Hard Money vs Private Money
- How to Find Private Lenders