Financing for wholesale real estate deals is a pipeline, not a single product. Each stage — offer, contract, assignment or double close — has a different capital need. This page walks through the full pipeline. Use the table below if you already know which stage you are in.
Which guide do you need?
| Your question | Read this page |
|---|---|
| Full pipeline overview | This page — stage-by-stage map |
| End buyer purchase loans (flip, DSCR, bridge) | End-buyer financing |
| POF letters and buyer vetting | Wholesaler proof of funds |
| End buyer lost financing — what to do | Wholesale buyer can’t close |
| Submit a stuck deal for rescue review | Second Look — wholesalers |
Stage-by-stage financing map
| Stage | Need | Jaken Finance Group tool |
|---|---|---|
| Making offers | Credibility with seller | Proof of funds → POF form |
| Under contract | Earnest money wire | EMD funding |
| Assignment exit | End buyer purchase loan | End-buyer financing |
| Double close | Same-day A-leg capital | Transactional funding |
| Buyer financing failed | Rescue before reassign | Wholesale buyer can’t close → Second Look |
Offer stage — proof of funds
Sellers and agents filter wholesalers without credible funds documentation. Request a POF letter per target property — and vet end buyers the same way. See wholesaler proof of funds for seller letters vs. buyer vetting.
Contract stage — EMD
Multiple contracts mean multiple deposits parked in escrow. EMD funding wires earnest money directly to title so operating cash stays in marketing and dispositions.
Exit stage — assignment vs. double close
Assignment: End buyer needs real purchase financing — product details on end-buyer financing.
Double close: Transactional funding funds the A-leg; B-buyer financing or cash completes the B-C leg same day. Do not confuse transactional letters with B-leg purchase loans — both pages explain the split.
Rescue stage — when B-leg financing dies
When the end buyer’s hard money loan denied, DSCR loan declined, or lender backed out before closing, do not reassign immediately. The full failure workflow — vetting vs. rescue, assignment vs. double close, A-side clock — lives on wholesale buyer can’t close.
Quick submit: Second Look · jakenfinancegroup.com/rescue
Preventing B-leg failures upstream
- Offer: credible POF per property — wholesaler proof of funds
- Contract: EMD funding so operating cash stays in marketing
- Buyer vetting: lender-verified POF before assignment — confirm product fit on end-buyer financing
- Exit planning: match buyer plan to product before marketing the deal
Regulatory note
Wholesale rules vary by state — see Illinois wholesaling guide and DMV wholesaling guide. Capital tools work nationwide; disclosure and assignment law does not.
National coverage
Jaken Finance Group supports wholesalers in all 50 states on business-purpose investment property. POF, EMD, transactional, end-buyer, and Second Look rescue use the same asset-based underwriting standards — ARV, LTC, DSCR, exit, and liquidity.
Worked pipeline — assignment with B-leg rescue
Day 1: Wholesaler locks A-side contract at $142,000 on distressed SFR — requests POF for seller credibility.
Day 3: Assigns to end buyer at $165,000 — buyer submits hard money file with national lender.
Day 18: Buyer declined at 75% LTC — buyer still wants deal at 70% LTC with more cash in.
Day 19: Wholesaler submits Second Look with A-side deadline Day 28, original term sheet, and scope.
Day 27: B-leg closes — assignment fee preserved; seller never notified of first lender failure.
When the buyer is real and only the lender box failed, rescue beats re-marketing the deal.
Double close vs. assignment — capital at each leg
| Structure | A-leg capital | B-leg capital |
|---|---|---|
| Assignment | Wholesaler EMD only | End-buyer purchase loan |
| Double close | Transactional funding | End-buyer purchase loan same day |
Misidentifying the structure is the most common wholesale financing error — A-leg transactional letters do not replace B-leg purchase underwriting.
Rule of thumb: if the end buyer needs a purchase mortgage, you are on the B-leg — transactional funding alone will not close that file. Confirm structure with title before you market the assignment.
Compare end-buyer products before you assign
Match buyer plan to product before marketing: fix-and-flip vs bridge · DSCR vs hard money · compare hub
Illustration: cash at each stage of one assignment
This sketch is not a closed wholesale file. The contract price with the seller is $190,000. Earnest money is $5,000, which is about 2.6 percent of that price. The assignment fee is $24,000, so the end buyer’s price is $214,000. The wholesaler’s cash out of pocket, before any earnest-money funding, is the $5,000 deposit. The $24,000 fee is collected at the buyer’s closing, if that closing happens.
The end buyer plans to hold the house as a rental. Rent in the sketch is $1,850 a month, or $22,200 a year. A DSCR loan at 75 percent of the $214,000 price is $160,500. At 7.25 percent, inside the 5.75 percent to 10.5 percent DSCR range, the 30-year principal and interest payment is $1,094.89 a month, or $13,139 a year. Rent divided by that principal and interest is about 1.69. That ratio is not a DSCR. Taxes, insurance, and any association dues still have to be added to the payment before a lender computes coverage. A DSCR file closes in about 14 business days once it is complete.
If the house is vacant and the buyer will renovate before a tenant, the fit is a flip or a bridge, not the rental loan above. Fix-and-flip loans are interest-only from 8.99 percent to 13.5 percent, for 6 to 12 months, up to 100 percent of cost on a qualified file, capped at 75 percent of after-repair value. Bridge loans use that same interest range for 12 to 24 months, up to 90 percent of the purchase price. Both can close in 7 to 10 business days on a complete file. Ninety percent of the $214,000 purchase is $192,600. That bridge figure does not include a rehab budget. Add rehab to cost only on the flip test, then apply the 75 percent after-repair cap.
Same-day money on a double close
A double close needs two fundings on one day. The A-leg buys from the seller at $190,000. Transactional funding covers that leg so the wholesaler is not wiring the purchase price. The B-leg sells to the end buyer at $214,000. The buyer’s loan or cash must fund the B-leg the same day, because the A-leg is typically paid back from the B-leg proceeds. The $24,000 spread is the gap between those prices. Two title policies, two sets of transfer charges, and any transactional fee come out of that gap. This page does not quote those local charges. Title in the county of the house does.
Do not hand the seller a transactional letter and call it the buyer’s purchase approval. The A-leg letter shows same-day funds for the first deed. The B-leg still needs its own underwriting. If the buyer’s lender declines on day 18, the rescue path is wholesale buyer can’t close, while the A-side deadline is still alive.
Documents by stage
| Stage | Have this before you move | Why it matters |
|---|---|---|
| Offer | Property-specific proof of funds | Sellers screen offers that show no funds |
| Contract | Earnest money wired to the named title file | A deposit in your operating account is not escrow |
| Assignment | Buyer’s loan plan matched to flip, bridge, or DSCR | The wrong product misses the A-side date |
| Double close | A-leg funding letter and B-leg term sheet, separate | One letter cannot do both jobs |
| Decline | The lender’s reason in writing | A second review needs the box that failed |
National materials prices also hit the rehab number you show a flip buyer. The construction-materials index was 375.908 in August 2026, up 10.1 percent from 341.458 in August 2025, on FRED WPUSI012011. It is not seasonally adjusted. A scope you marketed in 2025 can be light. Ask the buyer for new bids before you treat their loan as fully funded.
How to pick the B-leg before you market the fee
Write the buyer’s exit in one line before you accept the assignment. “Live in it” is not a file Jaken Finance Group can fund. We finance non-owner-occupied investment property. “Flip and sell” points to fix-and-flip. “Rent after a lease is signed” points to DSCR. “Buy now, lease later” points to bridge. Mixing those in the marketing email produces a buyer who applies for the wrong loan and then cannot close.
Stack the deadline against the product
Use business days on the A-side, then subtract the product’s close window. DSCR needs about 14 business days after the file is complete. Fix-and-flip and bridge need 7 to 10. If the seller’s date is 15 business days out and the buyer needs DSCR, the package has to be complete on the next business day. If that same date is a flip, you have about a week to finish scope, entity papers, and insurance before the 7 to 10 day clock must start. Write those dates on the assignment before you publish the fee.
Several contracts multiply the deposit, not the purchase loan. Three houses at the $5,000 earnest money in the sketch above tie up $15,000 if you wire each one yourself. EMD funding is the tool for the deposits. It is not the purchase loan, and it is not the buyer’s proof of funds. Keep those three wires in three title files so a cancelled contract returns the right deposit.
Where the $24,000 fee is paid
In the assignment sketch, the fee is part of the $214,000 buyer price. It is not a second check on top of that price, and it is not the $5,000 earnest money. The DSCR illustration loans $160,500. Cash to cover the price, before closing costs, is $214,000 minus $160,500, which is $53,500. On the settlement statement, $190,000 is the seller’s price and $24,000 is the assignment. Those two lines add back to $214,000. Closing costs sit outside that split. If the buyer cannot bring the $53,500, the fee does not get paid, even when the loan amount looks large. That is why buyer liquidity belongs in the vetting step, next to the term sheet.
Call (833) 264-7776 when you know the exit and the A-side date. Map the buyer on end-buyer financing. If you only need a letter for the offer, use the proof of funds guide for wholesalers.
Pipeline questions? End-buyer financing · POF? Request proof of funds · Buyer can’t close? Wholesale buyer can’t close