Double Close
Two separate, back-to-back closings (A-to-B then B-to-C) used by wholesalers to buy and immediately resell a property, keeping the spread private. Often funded with transactional funding.
A double close (also called a simultaneous close or back-to-back close) is a wholesaling technique in which an investor completes two distinct transactions on the same property, usually the same day:
- Transaction 1 (A→B): the original seller sells to the wholesaler.
- Transaction 2 (B→C): the wholesaler immediately resells to the end buyer at a higher price.
The wholesaler briefly takes title and earns the spread between the two prices. The A→B purchase is typically paid for with transactional funding, which is repaid from the B→C sale hours later.
Double close vs. assignment
Wholesalers have two ways to monetize a contract:
| Assignment | Double close | |
|---|---|---|
| Mechanism | Sell the contract to the end buyer | Buy then resell the property |
| Wholesaler takes title? | No | Yes (briefly) |
| Spread visible to parties? | Yes (assignment fee shows) | No (two separate HUDs) |
| Closing costs | One set | Two sets |
| Best when | Fee is modest; all parties agree | Fee is large; end buyer's lender won't accept an assignment |
Why investors choose a double close
- Privacy of the spread. When the markup is large, an assignment fee on the settlement statement can spook the seller or end buyer. A double close keeps each side's numbers on its own closing statement.
- Lender compatibility. Many institutional and conventional buyers (and their lenders) won't fund the purchase of an assigned contract but will happily buy from a seller of record.
- Clean chain of title. The wholesaler is a genuine owner in the chain, even if only for minutes.
The costs and the catch
A double close means two sets of closing costs — title, escrow, and recording fees on both transactions — plus the transactional funding fee. Those costs only make sense when the spread is large enough to absorb them.
The catch is the same as transactional funding's: you need a ready, funded end buyer for the B→C leg before you commit, because that sale repays the money used to buy. Coordinate both closings with a title company experienced in back-to-back transactions. See the step-by-step in our double closing guide.
Frequently asked questions
Is a double close legal?
Yes, a double close is a legal and common wholesaling practice when done with full disclosure and a title company that handles back-to-back transactions. Laws and licensing rules vary by state, so confirm the requirements in your market and work with a qualified closing attorney or title company. This is general information, not legal advice.
Double close vs assignment — which is better?
Assignment is cheaper (one set of closing costs) and simpler when all parties are comfortable seeing the assignment fee. A double close is better when the spread is large enough that you'd rather keep it private, or when the end buyer's lender won't accept an assigned contract.
Do I need my own money to double close?
No — that's what transactional funding is for. It covers 100% of the A→B purchase and is repaid same-day from the B→C sale, so you can double close without using personal capital, provided you have a ready end buyer.