Double Close vs Assignment: Which Exit to Use and What It Costs

There are two ways to get paid on a wholesale deal. Picking the wrong one either costs you thousands in fees or costs you the deal entirely.

Assignment

You transfer your contract to the end buyer for a fee. One closing, A→C, with your fee shown on the settlement statement.

Costs: effectively nothing beyond your earnest money. Speed: fastest — no funding, no second closing. Visibility: the seller and buyer both see your fee on the settlement statement.

Use it when: the seller is a private individual, the contract permits assignment, and your fee is proportionate enough that nobody blinks.

Double close (back-to-back)

Two separate transactions, usually minutes apart. A→B (you buy from the seller) and B→C (you sell to your buyer). You take title, briefly.

Costs: a second full set of closing costs — title, recording, transfer taxes — typically $1,500–$3,500, plus transactional funding fees of roughly 1–2% of the purchase price if you don't have the cash. Speed: slower; needs a title company that does back-to-backs and, often, same-day funding. Visibility: each side sees only their own settlement statement. Your spread stays private.

Use it when:

• Your spread is large (say $40,000 on a $90,000 purchase) and disclosure would blow up the seller
• The contract has a non-assignment clause — bank-owned, HUD, some builders, some estates
• Your state restricts marketing an assigned interest
• The end buyer is using financing whose lender won't accept an assigned contract

Transactional funding

A short-term lender funds the A→B leg for a few hours. Requirements are simple: a signed B→C contract with proof of funds from your end buyer, and a title company willing to do it. Fees run 1–2% of the loan, often with a minimum around $1,000–$2,500. No credit check, no appraisal — the lender is underwriting the C-side buyer, not you.

Seasoning and lender rules

If your end buyer is using a conventional or FHA loan, watch title seasoning. FHA has a 90-day anti-flipping restriction on resales; many conventional lenders want 30–90 days of ownership before they'll finance a resale. This is a common and expensive surprise.

Cash buyers and hard money buyers have no seasoning requirement, which is why wholesalers overwhelmingly sell to them.

Quick decision table

The practical advice

Call your title company before you sign the seller's contract and ask two questions: *"Do you close assignments?"* and *"Do you do same-day back-to-back double closings?"* Half of all title companies say no to the second. Knowing that in advance is worth more than any script.