Wholesale transactional funding is the short-term capital that lets a wholesaler buy a property and resell it the same day without using their own money. F2 Finance now offers it as a standalone product: 100% of the A-to-B purchase price, funded same day from our own balance sheet, repaid when your end buyer closes. Here is how it works, what it costs, who it suits and how to get a deal funded.
What a double close actually is
In a wholesale double close there are two sales of the same property, usually within hours of each other. In the first leg (the A-to-B), you buy from the seller in the name of your own entity. In the second leg (the B-to-C), you sell to your end buyer at a higher price. The difference between the two prices, less your costs, is your spread.
The catch is the first leg. You have to actually close on the property, which means somebody has to wire the full purchase price to the title or escrow company. Transactional funding is the money that does that. It is sometimes called double close funding or flash funding, and it is deliberately short: the capital is typically out for a few hours and is repaid from the proceeds of your resale.
Why wholesalers double close instead of assigning
An assignment, where you sell your purchase contract to the end buyer for a fee, is simpler and cheaper when it works: one closing, no funding. Plenty of deals still go that way. But there are good reasons to take title and resell as the owner:
Your end buyer's lender requires it. Many lenders, conventional and private, will only fund a purchase from the owner of record. If your buyer is financing, a double close keeps their loan on track.
You want the spread kept private. In a double close there are two separate settlement statements. The seller sees your purchase price, the buyer sees theirs, and neither sees the difference. On a large spread that matters.
You want to control the transaction. As the owner, even for an afternoon, you are a principal in both deals rather than a party to one contract. Some operators simply prefer to run their business that way.
Whichever route you take, follow the terms of your contracts and have a real estate attorney review your documents. We fund the double close; we do not give legal advice on how to structure your deals.
What F2 Finance offers
Our wholesale transactional funding is built around a simple promise: where you have a resale agreed, we fund 100% of the purchase price, same day.
100% of the A-to-B purchase price. Any earnest money you have already paid is credited toward the purchase and we fund the balance. You do not bring cash to the first closing.
Same-day funding. Send us both contracts, your end buyer's proof of funds and your escrow contact, and we confirm the deal the same day. On closing day we wire to escrow and are repaid when the B-to-C records, usually a few hours later.
No credit check. Repayment comes from your end buyer's purchase, so we underwrite the deal and your end buyer, not your credit score, income or experience. We verify your entity and your ID, and that is it.
$300,000 to $3,000,000. The same range as our bridge loans, so a mid-market double close in Los Angeles or Miami is as comfortable for us as a $350,000 house in Georgia.
All 15 states where F2 lends. California, Florida, Texas, Georgia, Washington, Massachusetts, Virginia, Alabama, Tennessee, Washington DC, Colorado, Missouri, North Carolina, South Carolina and Oregon.
One flat fee, paid at closing. We quote one flat fee on the amount advanced when we confirm your deal. It is paid out of the B-to-C proceeds, so there is nothing to pay upfront. If the deal doesn't close, you don't owe us a funding fee.
Proof of funds for your seller. Once we have confirmed the deal we can issue a proof of funds letter so the seller's side knows the first closing will fund.
Our own capital, which is why we can be flexible
Most transactional funders are brokers or small funds that have to find the money deal by deal, or lenders that sell their loans on and can only fund what their buyers will take. F2 Finance is a balance sheet lender: we lend our own proprietary capital and we never sell our loans.
That gives us full discretion over how a deal is structured and on terms. If a resale slips by a day or two, call us early and we can usually hold the position. If your deal is set up with two escrow companies rather than one, tell us before you apply; for established operators we can often work with it. And if the end buyer falls away altogether, depending on the operator and the property we can convert the position into a short F2 bridge loan rather than leaving you stranded at the first closing. The decision is made in-house by the people who wired the money, not by a credit committee somewhere else.
Any property type, one lender
Residential is our preferred asset class, and most wholesale double closes are single family homes or small multifamily. But we also fund mixed-use, retail, office, industrial and land, so a contract on a commercial building does not need a different lender.
That is what makes F2 a better one-stop shop for wholesalers with a wide range of business. Transactional funding on the double close. A bridge loan for your end buyer if they need one, with or without rehab funding. A cash-out refinance on the property you decide to keep. Or the commercial deal nobody else on your list will touch. One lender, one relationship, and terms tailored to how your business actually runs.
A worked example
Say you have a house under contract at $600,000 and an end buyer signed at $650,000, with $10,000 of earnest money already in escrow.
On closing day F2 wires $590,000 to escrow (the purchase price less your deposit) and you take title. A few hours later your end buyer's funds come in, escrow repays F2 the $590,000 plus our fee, pays both sets of closing costs, returns your $10,000 deposit, and wires you the balance of the $50,000 spread. Your cash in the deal is your earnest money plus the first leg's closing costs, and you get it back the same afternoon.
The exact figures depend on your fee quote and your title company's costs, which vary by state. The calculator on our transactional funding page lets you run your own numbers: move the purchase price and spread, plug in your deposit and closing costs, and see your estimated net, break-even resale price and cash in the deal.
What we need, and how fast
To confirm a deal we need four things: the A-to-B contract, the B-to-C contract, your end buyer's proof of funds or lender commitment, and the contact at your title or escrow company. As standard, both legs close with the same title company, which keeps the recording order and the flow of funds clean.
Send those as early as you can. Most deals are confirmed the same day we receive them, and once confirmed we fund on your closing date, same day. The one piece that occasionally slows things down is the end buyer's proof of funds, so chase that first.
Questions wholesalers ask us
Do you check my credit? No. We underwrite the deal and your end buyer. We verify your entity and your ID.
What if my end buyer doesn't close? This is the one real risk in a double close, which is why we verify the end buyer before wiring. If the resale slips, call us early. Depending on the operator and the deal we can hold the position for a few days or convert it into a short bridge loan.
Do both closings have to use the same title company? Yes, as standard. If your deal is set up differently, tell us before you apply.
Can you finance my end buyer as well? Yes. If your buyer needs a bridge loan to close, that is our core product: $300K to $3M, residential or commercial, funded in days.
Is there anything to pay upfront? No. Our fee is paid out of the B-to-C proceeds at closing.
Got a double close lined up?
There is no form to fill in. Email the deal team at salesteam@f2finance.com with your two contracts and your end buyer's proof of funds, or call +1 424 888 0045 and talk to a person. Full details, terms and the deal calculator are on our wholesale transactional funding page.