What the Echo Method is
Echo is short-term funding for the end buyer's down payment on the back half of a double close. The end buyer closes with their primary lender plus our capital - and we're repaid out of the deal's spread on that same settlement statement. Funds in, funds out, one closing. That's the echo.
Compare that to a gap loan: no recorded second-position note, no debt sitting on the deal for six to nine months. The money is in and out of a single closing, and every party - seller, wholesaler, end buyer, lender - cashes out at the table.
Who it's for
Two people meet in every Echo, and it solves a problem for both. The wholesaler with a real spread and a buyer who keeps stalling because they can't cover the down payment - Echo turns "my buyer needs three more weeks to raise cash" into a closing date. The end buyer - usually a fix-and-flipper buying from a wholesaler - who has the primary lender lined up but doesn't want to drain reserves or take on second-position gap debt to cover the cash to close. And there's a third profile: the investor wearing both hats, wholesaling a deal to their own buying entity, where Echo covers the down payment on the back leg.
The two legs and the three players
A double close is two purchases back to back: the A-B leg, where the wholesaler buys from the seller, and the B-C leg, where the end buyer purchases from the wholesaler at a higher price. Three funding pieces make the B-C leg close: the primary lender (usually hard money, sized as a percentage of the appraisal-supported B-C price) brings the biggest piece; RealQuick Funds wires the end buyer's down payment and closing-cost gap; and the difference between the two legs - the spread - is the wholesaler's profit line on the settlement statement. That spread is what repays us.
How the money actually moves
Everything runs through licensed title and escrow, in a strict order. The primary lender's funds land at title first and are confirmed - our capital never leads. We then wire the down payment directly to title, never to a person. The B-C closing records, and on that same settlement statement, title disburses the wholesaler's spread with our repayment carved out and wired back per disbursement instructions locked in before a dollar moves. One settlement statement. Money in and money out on the same paper - which is exactly why our capital can move in a day or two with zero drama.
See the math on a $725K flip
The end buyer closes a $725,000 purchase without draining reserves, the wholesaler banks the remaining spread at the table, and the seller was cashed out on the A-B leg. Estimates only - run your own legs in the Echo Calculator, every field is editable, and exact figures always arrive with your written terms.
The rule that decides every deal
One test separates a fundable Echo from a wish: the spread has to cover our funding plus our fee. The Stack Method exits through the seller carry; Echo exits through the spread. If the spread covers repayment, everybody cashes out at one table. If it doesn't, it's not an Echo we can fund - period. Raise the B-C price (only if the appraisal supports it), shrink the funded amount, or restructure. And that's the second gate: the B-C price must appraise, because the appraisal sizes the primary loan, and the primary loan sizes everything else.
Done right: title discipline
Echo's safety lives in the sequencing, and we don't improvise it:
- Senior funds land first. The primary lender’s money is confirmed at title before ours moves.
- Our wire goes to title, never to a person. No exceptions.
- Repayment comes off the settlement statement per disbursement instructions locked in before funding - not from anyone’s promise afterward.
- The title company has to be comfortable with back-to-back closings. We can tell within one phone call whether they are.
When it's not an Echo
Buying directly from the seller with seller carry in the structure? That's a Stack, not an Echo - run it through the Stack Method Calculator instead. Spread too thin to cover the funding? Not an Echo - restructure before you submit. Need capital that stays in the deal for months? That's gap funding, and it's a different risk animal - Echo is in and out of one settlement. B-C price the appraisal won't support? No primary loan, no Echo.
How RealQuick Funds funds it
What you'll need
- A-B and B-C purchase contracts
- The end buyer's primary lender term sheet or approval
- Title/escrow contact comfortable with back-to-back closings
Echo questions, answered
Who actually repays RealQuick Funds?
The deal does. Title wires our repayment out of the wholesaler's spread on the same settlement where we funded. Nobody writes us a check afterward.
Is this a loan to the end buyer?
It's transactional funding into the closing - not a recorded second mortgage, not gap debt that sits on the property.
Echo vs. Double Close funding: what's the difference?
Double Close funding pays for the A-B purchase and is repaid when the B-C closes. Echo funds the down payment on the B-C itself and is repaid on that same settlement. Nine out of ten Echos ride on a double close - we often fund both legs.
Echo vs. a gap lender?
A gap lender records a note and lives in the deal for months. Echo is in and out of one closing - no lien on the flip, no second payment eating the rehab budget.
Does the B-C price have to appraise?
Yes. The appraisal sizes the primary loan, and the primary loan is what makes the spread real. No appraisal support, no Echo.
How fast does it move?
Written terms typically same day; money out typically in a day or two. Repayment happens the moment the closing records.
What does it cost?
Every deal is priced individually based on structure, timeline, and risk - starting at a minimum fee quoted in your written terms. The calculator's fee fields are editable estimates, and it shows you whether the spread supports the deal before you ever submit.
Do you pull my credit?
No - like all our transactional funding, Echo is underwritten on the deal, not your W-2 or credit score.
Got a deal? Get funded. Real quick.
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Nothing on this website is legal advice. It reflects our opinions and our experience. For legal questions, consult your own counsel.