Here’s a step-by-step look at how a double closing works:

1. The A-to-B Transaction

• The original seller (Party A) agrees to sell the property to the investor (Party B).
• Party B (the investor) signs a purchase agreement with Party A, which specifies the purchase price and other terms.
• This agreement typically includes language allowing Party B to bring in funds for a simultaneous closing.

2. The B-to-C Transaction

• Party B, now the temporary owner of the property, signs a second purchase agreement with an end buyer (Party C).
• This transaction reflects a higher purchase price than what was agreed upon in the A-to-B transaction, allowing Party B to profit from the spread.
• Both transactions are scheduled to close on the same day or within hours of each other, with the B-to-C transaction occurring immediately after the A-to-B transaction.

3. Funding the Double Closing

• To double close, you will need funding to purchase the property from the original seller.  This is where we step in.  We can provide a loan for up to the full amount of the A->B purchase price.  This allows you to pursue a double close without leveraging any of your own funds.  Our transactional funding will typically require the double close to take place on the same day (with exceptions for certain states where the close needs to span consecutive days).

Transactional funding is short-term financing that allows you to close on a property and then sell it to another investor rather than assign the contract.  This strategy is beneficial in locations where assignments are not allowed or situations where you may not want the end buyer to know your wholesale spread.

We are able to fund the entire purchase amount.

For transactional funding, we charge a flat 1.5% fee or a minimum of $1500.  For example, if you need $500,000 to close, our fee would be $7,500.

Yes, we work in all 50 states.  However, many states have their own laws, rules and regulations.

No, we do not require any financial statements, credit reports or other personal information.  All we need is the A->B and B->C contracts and the title company details.

We can typically fund your deal within 1-2 days.  The first step is to complete our application and provide requested information.

• Profit without Holding Costs: Since the two transactions happen back-to-back, the investor avoids paying holding costs, like property taxes and insurance.
• Increased Privacy: The end buyer (Party C) does not see the original seller’s sale price, which can make the investor’s profit margin less transparent.
• Flexibility for Wholesale Investors: Double closings allow wholesalers and investors to add value or find buyers for properties without necessarily holding them long-term.