Transactional Lending for Double Closings — Fast Funding, All 50 States
Gap Funded provides transactional lending for real estate wholesalers executing double closings. We fund 100% of the A-B purchase price and wire directly to escrow fast. Your end buyer's B-C proceeds repay the advance quickly. Proof of funds letter available immediately at no cost. No credit check. No income verification. Available in all 50 states.
What Is Transactional Lending?
Transactional lending — also called transactional funding, flash funding, or fast bridge funding — is a short-term private money loan used by real estate wholesalers to fund the first leg (A-B) of a double closing.
In a double closing, three parties are involved:
- Party A — the original property seller
- Party B — the wholesaler (you)
- Party C — your end buyer
The wholesaler purchases the property from Party A using transactional funding, takes title briefly, and then immediately sells to Party C. The B-C proceeds repay the transactional lender quickly. The wholesaler keeps the spread — the difference between the A-B and B-C prices.
To legally execute a double closing in 2026, wet funding is required. The purchase price must physically hit the escrow account for the A-B transaction. Transactional funding provides these good funds — without the wholesaler needing to use their own capital.
Why Wholesalers Use Double Closings Instead of Assignments
The contract is not assignable
MLS properties, bank-owned REO properties, HUD, FHA, Fannie Mae, and Freddie Mac properties typically prohibit assignment. The only way to wholesale these legally is to actually purchase and resell via a double close.
The assignment fee is too large to disclose
On a deal where the spread is $30,000 to $80,000, showing the end buyer the assignment fee can kill the deal. A double close keeps the profit margin completely private from both the seller and the buyer.
New wholesaling laws in 2026
Multiple states — including Illinois, Georgia, and others — have moved to define wholesaling as a licensed real estate activity when contracts are assigned without the investor taking ownership. A double close makes you the actual legal owner during the transaction, sidestepping assignment restrictions entirely.
How Transactional Funding Works — Step by Step
Key Terms
100% of the A-B purchase price funded
Repayment from B-C closing proceeds — fast
Private money — fees typically 1 to 2% of the A-B purchase price, or flat fee
End buyer must be confirmed and under contract before funding is requested
Both A-B and B-C contracts required at submission
Title company must accommodate back-to-back closings — confirm before submitting
Profit must exceed $10,000 before a double close is cost-effective over assignment
Available in all 50 states
Important Note:
Transactional funding is private money. Terms — including fees, structure, and any lien or equity arrangements — vary by deal and are agreed at submission. Gap Funded's transactional lending is not the same as the unsecured gap funding term loan product. Consult your real estate attorney regarding double closing laws in your specific state.