REAL ESTATE INVESTOR FINANCING
Echo Funding Guide
B-C down-payment funding, spread-must-cover-repayment, and same-day transactional structure.
What It Is
Transactional down-payment funding on the B-C leg of a double close. The end buyer has primary financing for the B-C purchase; Echo capital supplies the portion of the end buyer's required cash contribution allowed by the transaction structure. At settlement, the capital and fees are repaid through escrow from the transaction proceeds.
What Problem It Solves
A wholesaler has an A-B and a B-C contract and a funded end buyer, but the end buyer's primary loan doesn't cover the full B-C purchase — there's a down-payment gap. Echo fills that gap so the B-C can close, and is repaid from the wholesaler's spread.
When It's Commonly Used
Double-close scenarios where the end buyer is short on the B-C down payment. The spread between the A-B and B-C prices must be sufficient to cover the Echo funding + fee + applicable costs.
Who Generally Qualifies
End buyers (or wholesalers coordinating them) with A-B and B-C contracts, a primary loan term sheet, an appraisal-supported B-C value, and a title/escrow company comfortable with back-to-back closing. The spread must support the Echo funding + fee + costs. No personal credit pull on the current transactional structure.
Current Green Fire Program Requirements
Typically 15–25% of the B-C purchase price, same-day structure, 2.5% base fee, $2,500 minimum, +1% for full VOF, +1% for multiple fund movements. The primary lender's funds must arrive at title first; Echo capital is then wired to title; repayment occurs through settlement.
How the Money Flows
Original seller (A) → A-B close → Wholesaler (B) → B-C close → End buyer (C). The end buyer's primary loan funds most of the B-C; Echo capital supplies the remaining down-payment portion. The primary lender's funds arrive at title first, Echo capital is wired to title, the B-C closes, and title repays the Echo capital from the spread. Remaining wholesaler profit is disbursed.
The Core Economic Test
The B-C spread must cover the Echo funding + the Echo fee + applicable transaction expenses. If the spread doesn't cover repayment, it's not an Echo — the options are reducing the funding need, bringing more buyer cash, restructuring the economics, or using another financing source. Unsupported price inflation is not a solution.
The Appraisal Requirement
The B-C price must be supported by the applicable valuation/appraisal because the end buyer's primary financing is sized from that value. No supported B-C value → no properly sized primary loan → the Echo structure may fail.
What Repayment Looks Like
Repayment occurs through escrow at the B-C settlement. The spread (B-C price minus A-B price, minus the Echo funding and fees) is the wholesaler's profit; the Echo capital is repaid first from the settlement proceeds, then the remaining spread is disbursed.
Biggest Risks & Tradeoffs
If the spread is too thin, the structure doesn't work. If the B-C value isn't appraisal-supported, the primary loan is undersized and the Echo may fail. The end buyer's primary lender must permit the structure. Transparency with title, escrow, the lender, and all required parties is maintained.
When to Use a Different Product
If the seller is staying in the deal (not everyone cashing out), it's a Stack, not an Echo. If only the earnest money needs funding, EMD is simpler. If the full A-B purchase (not just the B-C down payment) needs funding, Double Close is the route. If the core requirement (contract, spread, seller carry, or funded end buyer) is missing, a different product — or a restructured transaction — is usually a better fit than forcing the structure.
How Green Fire Structures It
Green Fire reviews both contracts, the end buyer's primary loan term sheet, the appraisal-supported B-C value, the spread, and the title/escrow setup, then wires Echo capital to title after the primary lender's funds arrive and tests whether the spread covers repayment.
Frequently Asked Questions
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View Echo Funding ProgramEducational content only. Guides describe how financing structures generally work and are not approvals, commitments, or guarantees of terms. Programs, eligibility, leverage, rates, fees, terms, timelines, and availability vary by provider, property, location, borrower qualifications, documentation, and deal structure. All financing is subject to independent provider review, underwriting, and final approval. Green Fire Strategies does not guarantee approval, terms, closing, or funding.
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