Dry Funding vs. Wet Funding: How It Affects Your Ability to Perform a Simultaneous Closing?

Myth Buster:
 “You can double close anywhere, anytime.”
 Not true. Your ability to perform a simultaneous closing a company depends heavily on whether you’re in a dry or wet funding state. The laws vary, and so does your timeline. One wrong assumption—and your deal could fall apart before it even funds.

Let’s break down the specifics for you –

Understanding the Basics: What’s Dry vs. Wet Funding?

The difference is simple, but the impact is major.

• Wet Funding: The buyer’s lender wires funds at All documents and funds exchange hands the same day.
• Dry Funding: Closing occurs, but funds are held until after final review—sometimes days later.

Why does this matter? Because in a real estate simultaneous closing, timing is everything. If you’re wholesaling or working a double-close deal, the funding method can make or break your margin—or the entire transaction.

Key Differences Between Dry and Wet Funding States

How This Impacts Your Simultaneous Closing Strategy

If you’re operating in a dry funding state, you must structure your deals with additional buffers. Why?

• You can’t count on funds being available at closing.
• HUD-1 or CD (Closing Disclosure) delays can stall disbursement.
• Wholesalers relying on end-buyer funds to complete A-B legs hit bottlenecks.

However, wet funding states provide seamless logistics for simultaneous closing a company, especially when timing matters most.

Here’s What You Need to Watch Out For:

• Lender’s funding schedule
• Wire cutoff times (Federal Reserve clearing window)
• Escrow’s capacity to manage same-day disbursements
• Title company’s dry or wet policy, regardless of the state

Dry State = Double Closing Danger Zone?

Yes—and no. Dry states like California, New York, and Washington often delay funding up to 72 hours post-closing. That means your double-close can’t always happen in one shot.

But here’s where it gets interesting:
 Some private lenders and transactional funding providers can bridge that delay—you just need the right partner.

According to the American Land Title Association (2024), 63% of delays in closings across dry states stem from funding lag and post-review documentation. That’s a huge issue if your margins rely on back-to-back deal execution.

So, Can You Still Double Close in a Dry State?

Yes—but you’ll need three things:

1. Reliable transactional funding that isn’t contingent on end-buyer wires.
2. A title/escrow office that understands investor deals and simultaneous logistics.
3. Pre-disclosed terms and scheduled HUD-1 reviews to avoid compliance delays.

Pro Tip:

EMD Transactional Funding caters to all the demands placed forth by the concerned individuals, including earnest money deposits, double-closing funds, and gap financing—structured for real estate simultaneous closing deals.

What If the Buyer’s Funds Don’t Arrive?

In a dry state, this isn’t just a “what if”—it’s a likely scenario. Without fast transactional lending, your A-B side collapses. What’s your fallback plan?

Can You Legally Structure a Wet Close in a Dry State?

There are legal workarounds—if your title company and lender are on board. But navigating that without expert help? Risky.

Final Thought: Timing Isn’t Just a Detail. It’s the Deal.

Whether you’re flipping contracts or executing a high-volume wholesale pipeline, dry vs. wet funding isn’t a minor distinction—it’s your operational blueprint. You must know where your deal stands before you even draft the contract.

So next time you think, “I can close this in 24 hours…”
 Ask yourself: Is the funding structure even aligned to let you perform?

Because in this business, deals die in the delay.

Need fast, nationwide transactional lending that works with your timeline, state laws, and strategy?
 Let’s talk funding that performs when it counts.