When a double close makes sense
Assignments are cheaper and simpler, but there are good reasons to double close instead:
- Privacy: with an assignment your fee appears on the buyer's settlement statement. Large spreads can spook buyers or sellers.
- Contract limits: some purchase agreements, bank-owned (REO) and short-sale contracts prohibit assignment.
- State rules: in several states, marketing or assigning an equitable interest now triggers licensing or disclosure requirements. Taking title first can change how the rules apply — check your state page and an attorney.
- Buyer financing: some lenders won't fund a purchase where the contract was assigned for a large fee.
What a double close costs
You pay to close twice. Expect a fee from your transactional lender (enter your quote), a second set of title and settlement charges, and — in states and cities with deed or transfer taxes — tax on the first sale as well as the second. The calculator subtracts all three from your spread so you can see whether the privacy is worth it.
How transactional funding works
Transactional funding is a very short-term loan that funds your A-to-B purchase. It's repaid from your end buyer's funds at the B-to-C closing, typically the same day. Lenders usually want to see the signed contract with your end buyer and proof that the buyer's funds or loan are lined up.
Frequently asked questions
What is a double close in real estate wholesaling?
Two back-to-back closings: you buy the property from the seller and resell it to your end buyer, typically the same day. Unlike an assignment, you briefly take title, and your spread doesn't appear on the buyer's closing statement.
Is a double close more expensive than an assignment?
Yes. You pay closing costs on two transactions, a transactional funding fee if you borrow for the first purchase, and transfer tax twice in states that charge it. Use the calculator to compare your net.
Is double closing legal?
Double closings are legal when fully disclosed and properly documented, but some states now regulate back-to-back closings by wholesalers too. Check your state's wholesaling rules and use a title company or attorney experienced with them.
Do I need my own money to double close?
Not necessarily. Transactional funding can cover the A-to-B purchase, repaid from the end buyer's funds at the second closing. You'll still pay the funding fee and closing costs.