Two ways exist to complete a wholesale deal: an assignment (transferring your buyer rights to the end-buyer) or a double close(actually closing on the property, then immediately reselling it to the end-buyer). Each has situations where it's clearly the better choice.
What a double close is
Also called a "simultaneous close": two transactions back-to-back on the same day. Transaction A: seller sells to you. Transaction B (often minutes later): you sell to end-buyer. You briefly own the property. Your profit is the spread between the two transactions.
Title companies that specialize in investor deals do this routinely, often funding the middle transaction with the end-buyer's money (transactional funding) so you don't need to show up with cash.
When assignments win
- Speed and simplicity — one transaction, not two
- Low cost — no double closing fees, no transactional funding cost
- Low-fee deals ($5K–$15K) where double-closing overhead eats the margin
- Your state allows assignments freely (most do)
When double closes win
- Seller doesn't want to know you're making a profit. In an assignment, the seller sees the assignment fee on the HUD-1. In a double close, they don't see the second transaction.
- Large spread / large fee ($20K+). Sellers sometimes feel cheated when the fee on paper is very visible.
- Listed property (MLS / FSBO). Agents and some sellers balk at "Buyer and/or assigns."
- Restrictive state (Illinois, Oklahoma) where assignments face licensing thresholds.
- Non-disclosure agreements or NDA-laden deals (commercial wholesaling)
The cost difference
| Assignment | Double Close | |
|---|---|---|
| Title fees | Paid once | Paid twice (~$2K–$4K extra) |
| Recording fees | Once | Twice |
| Transfer taxes | Once | Twice (in most states) |
| Transactional funding | Not needed | 1–2% of purchase price if used |
| Typical total overhead | $500 | $3,000–$6,000 |
Double-closing costs $3K–$5K more than assigning. For a $10K fee, that's 30–50% of your profit. For a $30K fee, it's 10–15% — still significant but often worth it for discretion.
Transactional funding explained
Transactional funding ("trans funding") is a short-term loan that covers the middle transaction in a double close. You're the borrower — the funder puts up the money to buy from the seller, you immediately resell to the end-buyer, and the funder gets their money back plus a fee.
- Typical cost: 1–2% of the purchase price, or $500 minimum
- Credit check: usually not required (asset-based lending)
- Hold time: same-day (hours, not days)
- Providers: Kiavi, HardMoneyLoan.com, local hard-money lenders
Double close workflow
- Sign purchase contract with seller (no "and/or assigns")
- Find cash buyer, sign second purchase contract with them at higher price
- Arrange title company (same company handles both closings)
- Arrange transactional funding if you don't have cash for transaction A
- Schedule both closings on the same day
- Transaction A: seller → you (funded by trans funding or your cash)
- Transaction B: you → end-buyer (minutes later, funded by their cash)
- Trans funder is repaid from B's proceeds
- Your profit = B price − A price − closing costs
Discretion is the main reason to double-close
In an assignment, the seller's HUD-1 shows the end-buyer as the buyer and your assignment fee as a line item. Some sellers see your fee and feel cheated — especially if the fee is large relative to what they sold for.
In a double close, the seller sees only their transaction. Your profit is invisible to them. This isn't unethical if you disclosed you're a buyer (not their agent), but it's less emotionally charged.
Decision framework
- Fee under $15K + unrestricted state: assign
- Fee over $20K: consider double-close for discretion
- Listed / MLS / FSBO property: double-close (agents push back on assignments)
- Illinois / Oklahoma / high-scrutiny state: double-close or novation
- Commercial deal: double-close is the norm
Bottom line
Assignments are default; double closes are the tool for specific situations (large fees, listed properties, restrictive states). Most solo wholesalers never need to double-close. Experienced wholesalers use both depending on the deal.