Double Closings Demystified: How Transactional Funding Bridges the Gap
The Mechanics of a Double Close
A double closing can sound intimidating, but it is simply two distinct real estate transactions happening on the exact same day, usually at the exact same title company.
Step 1: The A-B Transaction
You (Buyer B) have a contract to purchase a property from the original Seller (A) for $200,000. To close this transaction, you need $200,000. The transactional lender wires $200,000 to the title company on your behalf. The A-B transaction closes. You now own the property.
Step 2: The B-C Transaction
Moments later, you (now Seller B) sell the property to your End Buyer (C) for $250,000. Buyer C's funds ($250,000) must already be sitting in the title company's escrow account.
Step 3: The Payout
The title company uses Buyer C's $250,000 to distribute the funds. They send $200,000 plus the lender's fee back to the transactional lender. They pay the closing costs. The remaining balance—your $50,000 profit minus fees—is wired directly to your bank account.
The Role of the Title Company
A double close is impossible without an "investor-friendly" title company. They must understand how to sequence the files, manage the separate settlement statements (HUDs), and coordinate the wire transfers efficiently. When structuring a double close, your capital strategy partner will often connect you with the right title professionals to ensure a seamless execution.
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Stefanie Blackburn
Borrower's Deal Strategist at CPI Transactions, LLC
Stefanie helps active real estate investors get their deals funded through smarter deal structures, broader capital relationships, and systems that make the process repeatable. She serves investors nationally across bridge, DSCR, fix & flip, transactional, commercial, and 2nd lien DSCR financing. Based in Denver, Colorado.
