What is Transactional Funding for Wholesalers?
Introduction: Why Wholesalers Need Creative Funding
Wholesaling is one of the fastest ways to break into real estate investing — but it comes with challenges. One of the biggest hurdles wholesalers face is funding their deals, especially when a simple assignment won’t work.
That’s where transactional funding (also known as “flash funding” or “same-day funding”) comes in. It allows you to complete a double close without risking your own capital, while still protecting your relationship with both the seller and the end buyer.
In this article, we’ll break down what transactional funding is, how it works, when you should use it, and how to get started — plus the best way to secure reliable funding for your deals.
What is Transactional Funding?
Transactional funding is short-term money provided to wholesalers to fund the A-to-B leg of a double close. This means:
You (the wholesaler) buy the property from the seller (Party A).
Immediately after, you resell it to the end buyer (Party C).
The transactional lender provides the funds so you don’t need to use your own cash.
Typically, transactional loans last 24–48 hours and are repaid the same day when the second closing (B-to-C) happens.
Why Would a Wholesaler Use Transactional Funding?
Not every deal can be done with a simple assignment contract. Transactional funding comes into play when:
The end buyer doesn’t allow assignments (common with banks, hedge funds, or institutional buyers).
You want to protect your wholesale fee from the buyer and seller.
The deal requires you to be on title temporarily for compliance or reputation reasons.
You’re doing a back-to-back double close and need to show proof of funds.
Benefits of Transactional Funding
✅ No risk to your own capital – You don’t need to bring money to the table.
✅ Protects your wholesale fee – The seller and buyer don’t see your markup.
✅ Keeps deals moving fast – Same-day funding means no delays.
✅ More credibility – You can close deals even when assignments aren’t possible.
Risks & Things to Watch Out For
While transactional funding is a powerful tool, wholesalers should understand the risks:
⚠️ Lender fees – Transactional funding usually comes with a flat fee or percentage of the deal.
⚠️ Tight timing – If the B-to-C leg falls through, you’re on the hook.
⚠️ Closing coordination – Your title company or attorney must be comfortable with double closes.
How to Get Transactional Funding for Your Deals
The process is simple when you have the right funding partner:
Submit your deal – Provide details about the A-to-B and B-to-C contracts.
Get approval – Your lender verifies that the end buyer’s funds are secured.
Close the deal – The lender wires funds for the A-to-B leg, then gets repaid at B-to-C.6. It drives long-term results
Need transactional funding for your deal? Submit your deal here!
Example of Transactional Funding in Action
Let’s say you contract a property from a seller for $100,000. You find an end buyer willing to pay $115,000.
In an assignment deal, your fee ($15,000) is shown directly. Some buyers or sellers may push back.
With a double close using transactional funding, you buy the property for $100,000 with the lender’s money, then immediately sell it for $115,000. Your $15,000 profit is clean, private, and protected.
Should You Use Transactional Funding?
If you’re wholesaling to institutional buyers, working with banks or REOs, or simply want to protect your wholesale fee, transactional funding is your best option.
It can also open doors to bigger deals that may not be possible with simple assignments.
Conclusion: Secure the Funding You Need
Transactional funding is a game-changer for wholesalers who want to scale their business, protect their profits, and close more deals.
At Fuel My Deal, we connect wholesalers with funding partners who specialize in fast, reliable transactional lending.
Have a deal right now? Submit it today and we’ll connect you with the funding you need to close