Who this is for
- Wholesalers double-closing to an end buyer the same day
- Investors covering a small shortfall at closing (gap funds)
- Flippers bridging between hard money payoff and sale proceeds
- Buyers who need proof of funds plus same-day close capability
Typical Gap & Transactional Funding requirements
| Term | Transactional: same-day to days; gap: weeks to a few months |
|---|---|
| Amount | Deal-dependent; gap funds often $10k-$150k |
| Cost | Flat fees and/or points; priced per transaction |
| Collateral | The transaction itself; end-buyer contract often required |
| Speed | Hours to days, this is the product’s entire point |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
How it works
- Present the deal: purchase contract, end-buyer contract (for double closes), and settlement statements.
- The funder verifies the end buyer’s funds and the title chain, same-day funding requires clean title work lined up.
- For transactional funding, money flows purchase-to-sale in one coordinated closing day.
- For gap funding, the advance covers the documented shortfall and is repaid from sale or refinance proceeds.
- Fees are paid at closing from the transaction proceeds.
Try the Fix and Flip Profit Calculator
Pros and cons
Advantages
- Closes deals that cannot close any other way
- Same-day capability for double closes
- No long-term debt, in and out with the transaction
Trade-offs
- Expensive per dollar, flat fees add up on small advances
- Requires a committed end buyer or clear exit; not for speculative holds
- Title and timing coordination is unforgiving
- Not a substitute for real capital on thin deals
Documents you’ll need
- Purchase contract (A-to-B)
- End-buyer contract (B-to-C) for double closes
- Proof of end buyer funds
- Title commitment
- Entity documents and ID
Gap & Transactional Funding FAQ
What is transactional funding?
Short-term money (often same-day) that funds your purchase so you can immediately resell to your end buyer, the classic wholesaler double-close. The funder’s security is the back-to-back transaction, not a long-term lien.
What is gap funding vs. transactional funding?
Transactional funding covers the full purchase in a double-close. Gap funding covers a shortfall, you have most of the money, and the gap advance fills the documented difference to reach the closing table.
How much does it cost?
Priced per deal: flat fees, points, or a combination. Because the term is days, APR-style comparisons mislead, evaluate the fee against the profit in the deal.
How fast can I get transactional funding?
Same day is the point of the product, but you need clean title work and a verified end buyer lined up. Realistic timeline is 24-72 hours from a complete package.
Do I need good credit?
Less than a mortgage, but funders still check. The deal and the end buyer’s funds matter more than your score.
What documents do I need?
Purchase contract, end-buyer contract, proof of the end buyer’s funds, and title commitment. Incomplete packages are the main cause of delays.
Can I use transactional funding without an end buyer?
Generally no. The end-buyer contract is the funder’s security. Without it, you are looking at hard money, not transactional funding.
What happens if my end buyer backs out?
You are on the hook. Transactional funding assumes the back-to-back close happens. Have a backup exit before you commit.
Is transactional funding available in every state?
Most active wholesaling states, yes. Availability follows the investor market, and some funders only operate in states they know well.
How Gap & Transactional Funding compares
| Gap & Transactional Funding | Fix and Flip Loans | Hard Money Loans | Bridge Loans | |
|---|---|---|---|---|
| Best for | Wholesalers double-closing to an end buyer the same day | Buying distressed or dated properties to renovate and sell | Auction, foreclosure and off-market deals that need to close in days | Buying before a sale or 1031 closes |
| Down payment | , | , | , | , |
| Credit | , | Typically 620–680 | Flexible; the property drives approval | , |
| Income docs | , | , | , | , |
Typical ranges, your Loan Estimate or term sheet confirms actual terms.
Coming soon: a 2-minute walkthrough from our loan team.
Related programs
Fix and Flip Loans
A fix and flip loan is short-term (usually 12–18 months), interest-only financing that covers most of a distressed property’s purchase price and up to 100% of renovation costs, repaid when you sell or refinance.
Hard Money Loans
A hard money loan is a short-term investment-property loan from a private lender that approves mainly on the property’s value and the deal, not your income or credit history.
Bridge Loans
A bridge loan is short-term (usually 6–24 months) investor financing secured by real estate that “bridges” you from a purchase to a sale or long-term refinance.