Funding a double closing has one of two ways that they are done in todays environment.

In the first case the person or entity purchasing the property brings funds to purchase the property and the Investore / wholeseller takes those funds and uses them to fund the closing of the first deal at the same time of the other closing. Florida still allows this process while other states have discontinued this process. So, investors and wholesellers can use their own money or they can locate transactional funding.

The other process is called transactional funding where the lender provides the full amount of the transaction needed to complete the first deal. This allows the investor to be able to complete the second transaction without having to use any of it's own capital. The Transactional Funding Lender simply charges a fee which is equal to a percentage of the transaction. The fees however, are generally more than the normal back rates. Which if you are an investor you are generally not surprised.

Different from hard money lenders, the transactional funding lenders regularly require a fast turnaround time in order to get their money back. This means that a double closing must take place with in 1 to 2 days and be completed.

Non-banks explain higher interest rate hikes

The official cash rate went up for a fifth time in September, invoking a flurry of interest rate hikes as lenders pass on the increased cost to borrowers.

But while most have matched the Reserve Bank’s 0.50% hike, interest rates on Firstmac home loan products increased by 0.60%, while AFG Home Loans increased interest rates in July, August and September, with increases ranging from 0.50% and 0.62%.

Headquartered in Brisbane, family-owned non-bank lender Firstmac has increased variable home loan rates by 0.60%, effective for new and existing customers from September 9.