Every wholesaler eventually hits the same wall: the deal is signed, the exit is lined up, and then somebody asks for money you weren’t planning to spend. Transactional funding exists for exactly that moment.
The short version
Transactional funding is short-term capital that sits in the middle of your deal — sometimes for a few days, sometimes for a few hours. A funder wires money to the title company so your transaction can move (an earnest money deposit, a full purchase, a down payment), and gets repaid out of the same transaction when it closes.
You’re not borrowing against your credit or your portfolio. The deal itself is the collateral, and the deal itself pays the money back.
The three places it shows up
1. Earnest money deposits
Title wants a deposit within days of contract acceptance. EMD funding covers it — the funder wires the deposit to escrow, and when the deal closes (or cancels cleanly inside inspection), the deposit comes back. This is the smallest and most common flavor. How our EMD funding works →
2. Double closings
When you can’t assign a contract — or don’t want your buyer to see your spread — you buy the property and resell it the same day. Transactional funding covers the full purchase price on your buy side for a few hours, then escrow repays it from your sale. How double close funding works →
3. Stack Method down payments
In seller-carryback structures, the down payment has to hit escrow before the seller financing exists. Transactional funding bridges that gap at the closing table, then the carryback replaces it. How Stack Method funding works →
What it costs
Pricing is deal-based, not rate-based. Because the money is out for hours or days rather than months, you pay a flat percentage of the funded amount — at Sure Flow that’s 5% up front plus 20% at close for EMD, a flat 1.5% for double closes up to $1M, and a flat 2.5% for Stack Method deals, each with a minimum return. The number is agreed in writing before anything wires.
Why not just use your own cash?
Some investors do — until they’re juggling three deals at once, or the deposit is $50K, or the double close is $600K. Keeping your capital for marketing, dispo, and reserves while transactional funding carries the closings is how smaller operators scale like bigger ones.
When it’s the wrong tool
Transactional funding is not a rehab loan, a bridge loan, or long-term leverage. If you need money for weeks or months — holding costs, renovations, a rental purchase — you want a different product. This tool is for money that moves in and out of a closing.
The bottom line
If a short-term cash requirement is the only thing standing between you and a signed closing statement, that’s a solvable problem. Submit the deal, get a number in writing, close, and keep your own capital compounding elsewhere.
Got a deal that needs capital in the middle?