Same-Day Transactional Funding: Who Pays Whom and When on a Double Close

What is the order of events on closing day?

A quick definition first. A is the seller, B is you (the wholesaler or investor), and C is your end buyer. The A-B closing is your purchase. The B-C closing is your resale. Same-day transactional funding is the short-term loan that pays for the A-B closing so the B-C closing can repay it. See Axelrad's transactional funding page for the program.

1. The lender confirms both contracts, the end buyer's verified funds and title's readiness to close both legs.
2. The lender wires the A-B purchase money to the title company.
3. The A-B closing funds. The seller is paid and title passes to you.
4. The end buyer's money arrives at title for the B-C closing.
5. The B-C closing funds and title passes to the end buyer.
6. Title repays the lender, plus its fee, out of the B-C proceeds.
7. Title pays B-C closing costs and sends you the balance.

Who pays whom, dollar by dollar?

This is a hypothetical example, not a quote or an Axelrad rate: a $200,000 purchase resold for $230,000, with an assumed funding fee of $1,950.

The $30,050 paid to you at title includes the $7,500 you put in along the way (your $5,000 deposit and $2,500 of A-B closing costs). Net of that, you keep $22,550: the $30,000 spread, less $5,500 in closing costs and the $1,950 assumed funding fee.

Where does my earnest money go?

Your earnest money deposit (EMD), the good-faith money you put down when you sign the A-B contract, is credited toward the purchase price. That is why, in the example, the lender wires $195,000 instead of $200,000. If you used EMD funding for the deposit, that funding is repaid at closing too. See EMD funding for how that works.

When does the transactional lender get paid?

Out of the B-C closing, before the balance is paid to you. Ask your funder in writing exactly when each charge is due and whether anything is withheld from the advance. Axelrad's current terms are on the transactional funding page.

What has to be ready before the lender wires?

The A-B leg closes first, so it cannot wait on the end buyer's money, which belongs to the B-C file. Before the wire, expect the lender and title to want:

• Both executed contracts, with every amendment, so property, parties and dates match.
• Proof of the end buyer's funds, or their lender and its open conditions if they are financing.
• The funder's wire and payoff figure, so title knows exactly what to return.
• A clear order of events: A-B closes, B-C closes, payoff comes out before your spread.

Our double-closing preparation checklist puts all of this on one page.

Why do some same-day closes slip to the next day?

Usually the end buyer's money. A lender condition has not cleared, or a cash buyer's wire is late. Financing type can matter too. Federal rules generally make a property ineligible for FHA-insured financing when it is resold within 90 days of the seller acquiring it (24 CFR 203.37a), so an end buyer using FHA financing is usually not a fit for a same-day resale. Confirm how your buyer is paying before you set a closing date.

If the B-C leg needs longer than a day, Axelrad has delayed and extended options. Tell us before closing day.

Can you double close without using any of your own money?

Sometimes, if the pieces line up. The deposit can come from EMD funding on a fully refundable contract. The A-B purchase can come from transactional funding. What usually still needs cash is your A-B closing costs: in the hypothetical example above, you put in $2,500 of A-B closing costs and get it back at title from the B-C proceeds. Ask your funder whether those costs can be covered on your deal. Rules on double closings vary by state, so confirm your structure with a real estate attorney.

Do both closings need the same title company?

No. Axelrad works with one title company or two and never requires ours. One team handling both files is what usually makes same-day timing practical, but what matters is that whoever runs the files has reviewed the structure in advance. A title company that regularly handles back-to-back closings will run two title searches and sequence the closings so A-B closes before B-C. Title practices vary by company and state.

Key takeaways

• The A-B purchase funds first with the lender's wire. The B-C sale funds second with the end buyer's money.
• Title repays the transactional lender, plus its fee, out of the B-C proceeds before paying you.
• Your earnest money is credited to the purchase, which reduces the amount the lender wires.
• Ask your funder when each charge is due and what is withheld from the advance.
• Confirm how the end buyer is paying. Late or restricted financing is the usual reason a same-day close slips.

Talk to Axelrad

Have an A-B and a B-C contract ready? Send them through Axelrad's application and see the transactional funding page for current terms. We will walk through the money flow on your file.