Florida is among the most active real estate markets in the United States. The state has built a reputation as both a playground for international buyers and a retirement spot for baby boomers, while also attracting Millennials and Gen Z renters who are driving the demand for housing in cities like Miami, Orlando, Tampa, and Jacksonville. Florida welcomes nearly 1,000 new residents each day, putting constant pressure on its housing supply. For investors, this high demand creates opportunities.
But opportunity in Florida doesn’t come without challenges. Investors regularly face competition from cash-rich buyers, aggressive institutional investors, and traditional homeowners who may be willing to overpay for properties, potentially driving up the real market value. Sellers want offers that close quickly, banks and asset managers often refuse assignments, and margins can be tight. To compete, investors need tools that provide both speed and flexibility.
One of the most powerful of these tools is transactional funding. Unlike conventional financing or even hard money loans, transactional funding is designed for extremely short periods, typically ranging from a few hours to one day at most. It enables wholesalers, flippers, and other investors to execute double closings without needing to use their own funds. This is especially relevant in Florida, where assignment restrictions, competitive bidding, and strict escrow rules often make transactional funding not just an opportunity, but a necessity in certain situations.
At its simplest, transactional funding is a short-term loan that allows an investor to purchase a property and then resell it on the same day. It’s sometimes referred to as “flash funding,” “one-day funding,” or “AB-BC funding,” because of the structure of the transactions:
A-to-B Closing: The investor (Party B) buys the property from the seller (Party A). The money for this purchase comes from a transactional lender.
B-to-C Closing: The investor (Party B) immediately resells the property to the end buyer (Party C). The funds from this resale repay the lender.
The entire process can take place in a single day, and in many cases, within just a few hours. Once the B-to-C closing is complete, the lender is repaid in full along with their fee. Unlike hard money lenders or banks, transactional lenders aren’t concerned with the investor’s credit score or financial history. Their focus is on whether the end buyer is ready and able to fund their side of the deal.
This type of funding fills a specific niche, allowing investors to comply with assignment restrictions, protect their profits from sellers, and avoid scrutiny from buyers. At the same time, they can still move quickly to fund their deals in competitive markets. The transactional loans are different from other types in that their duration is usually less than 24 hours, compared to 6–12 months for hard money and decades for conventional mortgages. Transactional funding is specifically designed for wholesalers who require double closings.
Lender underwriting is minimal, mainly based on proof that the end buyer has funds. Transitional loans are repaid almost immediately once the resale closes.
While transactional funding can be used anywhere in the U.S., it is crucial in Florida for several reasons:
Florida wholesalers frequently encounter contracts that prohibit assignment. HUD-owned homes, REOs, and many bank contracts include clauses forbidding it. For investors, this leaves only one option: a double closing. Transactional funding provides the bridge capital needed to complete these transactions.
In a market as competitive as Florida, profit spreads can be significant. A wholesaler may put a property under contract for $200,000 and resell it for $240,000, netting $40,000. If that deal is structured as an assignment, the end buyer sees the wholesaler’s profit on paper, which can lead to resentment, renegotiation, or even a lost buyer. By using transactional funding for a double closing, the wholesaler keeps their profit private.
In Miami, Orlando, and Tampa, properties can go under contract within hours of being listed. Sellers and agents often favor buyers who can close quickly. By leveraging transactional funding, wholesalers can present themselves as cash-ready buyers, even when they don’t personally have $200,000 or $500,000 on hand.
A strong proof-of-funds (POF) letter is critical in Florida. Realtors® and sellers want to know that buyers can close. Transactional lenders provide POF letters that wholesalers can use to support their offers. A letter backed by a verified bank statement carries much more weight than a simple bank statement screenshot.
Without transactional funding, an investor is limited by the amount of cash they have personally available. With it, they can work on multiple deals simultaneously. A Florida wholesaler could contract a $150,000 Orlando property, a $500,000 Miami condo, and a $900,000 Tampa multifamily, all in the same week, without having to front a single dollar of their own money to pay for these transactions.
One of the reasons transactional funding is such an essential tool in Florida is because of the state’s unique closing practices. Florida is a title state, which means that title companies (and in some cases attorneys) are responsible for overseeing real estate closings. This has direct implications for how transactional funding works.
Not every title company in Florida understands wholesaling, let alone double-closing, transactionally funded transactions. Some closing agents will refuse to handle these types of deals because they are unfamiliar with the process or perceive it as risky. For wholesalers, choosing the right title company is critical.
An experienced title company will: understand how to handle A-to-B and B-to-C closings on the same day properly, ensure that escrow accounts are managed correctly so funds are not commingled, protect the confidentiality of the wholesaler’s profit, and coordinate with the transactional lender to guarantee funds are wired on time. Without the right title company, even a solid wholesale deal can fall apart.
Florida law requires strict escrow handling. Wires must be executed precisely, and every dollar must be accounted for. If the end buyer’s funds are not verified or if there is a mistake in transferring funds between the A-to-B and B-to-C closings, the entire transaction could collapse. Transactional lenders typically prefer working with title companies they already know and trust, and wholesalers benefit by following their guidance.
Florida was one of the first states to widely adopt remote online notarization (RON). This allows closing documents to be signed digitally and notarized via video conference. For out-of-state or international investors funding deals in Florida, RON has been a game-changer. It also benefits transactional lenders, who can work seamlessly across multiple markets without physically being present.
Although Florida law provides the general framework, different counties sometimes have slightly different practices. For example, Miami-Dade and Broward counties tend to enforce stricter disclosure standards, while Orange County (in the Orlando area) may be more flexible with wholesaling practices. However, title companies still vary widely in their experience. Smaller counties may have less familiarity with double closings, which can slow down the process. Due to these variations, investors operating in Florida should seek out statewide lenders and title companies with extensive experience in transactional funding.
Like any financial service, transactional funding comes with a cost. In Florida, fees are typically structured in one of three ways: All transactional lenders have a minimum fee, such as for deals under a certain threshold. A typical example is $650 up to $1,750 for transactions below $80,000. This ensures the lender is compensated for their time and wire transfer costs, even on small deals.
Most lenders charge a percentage of the total loan amount. The industry standard is 0.75% to 1.5% of the amount funded. This means that on a $200,000 deal, the lender’s fee might range from $1,500 to $3,000. While these fees may sound steep for a loan that lasts just a few hours, they are usually worth it. Without the lender, the deal would not close, and the investor would walk away with nothing.
While transactional funding offers speed and flexibility, it also carries risks that every Florida investor should be aware of. The most significant risk is that the end buyer does not close. If the end buyer fails to fund their purchase, the transactional lender still expects repayment. This leaves the investor scrambling to either find a new buyer or risk losing money. Savvy investors always verify their end buyer’s funds well in advance of closing.
As noted earlier, not every title company is familiar with double closings. An inexperienced closing agent may mishandle escrow funds or fail to schedule the two closings back-to-back. This can delay or derail the transaction, leaving the investor responsible for repayment.
In summary, Florida’s market moves fast, but it is also subject to volatility. Shifts in mortgage interest rates, hurricanes, or sudden changes in demand can disrupt deals. Investors relying heavily on transactional funding must remain vigilant and adaptable. Delaying making decisions can be extremely costly, so be careful out there.