How the money actually moves

The three people

A is the original seller. B is the investor. C is the end buyer. B has a contract to buy from A and a contract to sell to C.

In a double close there are two closings, back to back. A to B first, then B to C. B is the real buyer in the first one and the real seller in the second. B takes title in between, even if it is only for a few hours.

Who pays for what

B usually does not have the cash to buy the property. That is the gap a transactional funder fills. The funder pays for the A to B purchase, short term. When the B to C closing happens, C's money pays the funder back, and B keeps the spread.

1. C puts its money into escrow at title first.
2. Title confirms C's funds are in and the numbers are final.
3. The funder wires the A to B purchase. A to B closes.
4. B to C closes. The funder is paid back from C's proceeds.
5. What is left goes to B.

End-buyer funds at title first, then we wire. If C's money is not in escrow, nothing moves.

One title company or two

One title company handling both closings means one file, one set of numbers and one person to call. It is the cleaner way to run a double close.

Two title companies can work. Then every number and every wire has to match across two files, and there are more places for a mistake or a fake email to get in. Plan for the extra time.

Assign or double close

An assignment sells your contract to C. There is one closing, and your fee is visible on the settlement statement. A double close is two closings, and you take title.

The two are different tools. A double close costs more steps and more money to run. Which one fits a deal is a question for your closing attorney, not for a lesson.

Real proof of funds

A proof of funds letter says money exists. A real one comes from the party holding the money and can be checked by calling that party at a number you found yourself. A letter nobody can verify is a warning sign, not a comfort.