The biggest mistake? Rushing into a double close contract without aligning timelines or coordinating with your funding partner.
It might seem like a quick way to flip a deal, but one misstep can turn profits into penalties. From title issues to poor communication with end buyers—there’s more at risk than you think.
Let’s uncover the seven critical double closing mistakes real estate investors often overlook—and how you can smartly sidestep them.
1. Failing to Review the Title Thoroughly
Think the title company will handle it all? Think again.
One unresolved lien or error in the chain of title can delay the entire double close contract. Worse, it could kill your deal.
Action Tip: Work only with trusted title agents who are familiar with double close lending procedures. Confirm clear title status before you bring in your end buyer.
2. Underestimating Funding Timelines
Here’s the cliffhanger: What happens if your funding doesn’t arrive on time… but your end buyer is already at the closing table?
Many wholesalers make the mistake of assuming funds will arrive instantly. But even the fastest transactional funding services need documentation, approvals, and coordination.
Fix it: Engage early with your lender. Ask clear questions. Confirm how soon funds are wired once your deal is greenlit.
3. Miscommunication with the End Buyer
Most double closings collapse not due to lack of capital—but due to lack of clarity.
Did you clearly explain the timing of your double close contract to your buyer? Are they ready to close within hours of your A-to-B deal?
Avoid this trap: Use written timelines. Share all critical deadlines upfront. Keep your buyer aligned—and your deal protected.
4. Choosing the Wrong Transactional Lender
Not all lenders understand double close lending. Some overpromise on speed, others charge hidden fees. A mismatch can delay funding—or even violate contract terms.
How EMD Transactional Funding helps: It’s built for real estate wholesalers. Fast. Transparent. Fully aligned with investor timelines and title needs.
5. Skipping the Earnest Money Deposit Planning
Did you know that over 37 percent of failed double closings happen due to EMD issues? (Source: National Association of Real Estate Investors, 2024)
When you don’t secure earnest money early, you risk losing buyer trust—and even breaching your contract.
Your smart move: Secure EMD via reliable sources or your transactional funder. It builds credibility and avoids last-minute panic.
6. Overlooking the Two-Transaction Structure
Many first-time investors misunderstand the mechanics. They think it’s just a fast flip—one deal, in and out.
But a double close contract involves two full transactions: A-to-B and B-to-C. If you don’t structure both sides with the correct documents and timelines, you risk a legal and financial mess.
Your fix: Confirm your title company and lender are experienced in double closing structures—not just standard flips.
7. Relying on Verbal Agreements
In transactional real estate, verbal promises can become your biggest liabilities.
From buyer commitment to title coordination—every step must be documented. A sudden change of mind or missed email can cause the entire deal to crumble.
Do this instead: Put everything in writing. Use email threads. Get confirmations. Don’t assume. Secure your investment with paper trails.
5 Trends Shaping Transactional Funding in 2025
| Trend | Impact on Investors |
| Faster digital closings | Enables same-day funding |
| AI-powered title reviews | Reduces legal risk |
| Real-time buyer verification | Increases deal confidence |
| Zero-upfront fee models | Lowers barrier for entry |
| Nationwide lender access | Simplifies local and out-of-state deals |
Ready to Close Smarter, Not Just Faster?
Avoiding these mistakes is not just about saving money—it’s about protecting your reputation as an investor. In today’s fast-paced market, your credibility and precision matter more than ever.
That’s why services like EMD Transactional Funding have become the go-to solution for modern wholesalers—offering speed, compliance, and investor-first support.
Now you know the pitfalls—so you won’t fall into them.
Whether you’re scaling your flips or making your first move, one thing is clear: mastering your double close contract strategy separates the pros from the amateurs.
And you’re here to win, aren’t you?
