Double Closing Explained: When and How to Use This Wholesale Exit

What Is a Double Close?

A double close (also called a simultaneous close or back-to-back close) involves two separate closings on the same property, usually on the same day. In the first closing (A-B), you buy the property from the seller. In the second closing (B-C), you immediately sell to your end buyer. Your profit is the difference between what you paid and what you sold for.

Unlike assignment where you never own the property, in a double close you briefly take title — sometimes for just hours.

When to Double Close Instead of Assign

Large Spreads

If your profit is $25,000+ on a $100,000 property, the seller may object when they see your assignment fee on the HUD. A double close keeps your profit private — the seller only sees what they receive, the buyer only sees what they pay.

Seller or Contract Restrictions

Some sellers, banks (REO properties), and HUD homes prohibit assignment. A double close works because you're actually purchasing the property.

Privacy

Neither the seller nor the buyer sees your profit margin. Each closing is a separate transaction with separate settlement statements.

How It Works Mechanically

Transaction A-B (You Buy From Seller)

• Seller (A) sells to you (B) at your contracted price
• You bring funds to close (your own cash, transactional funding, or buyer's funds)
• Deed transfers from A to B
• Title records the transfer

Transaction B-C (You Sell to Buyer)

• You (B) sell to buyer (C) at your higher price
• Buyer brings their funds to close
• Deed transfers from B to C
• Title records the second transfer
• Your profit = B-C price minus A-B price minus closing costs

Same-Day Timeline

1. Morning: A-B closing executed
2. Afternoon: B-C closing executed
3. You own the property for hours (sometimes minutes)

Funding the A-B Transaction

You need funds to close the first transaction. Options:

Transactional Funding

Specialized short-term lenders who provide funds specifically for double closings:

• Loan term: 1-3 days
• Cost: 1-2% of the loan amount (flat fee)
• No credit check, minimal documentation
• Funds wired directly to the closing

Your Own Cash

If you have available capital, you can fund the A-B yourself and avoid transactional funding fees.

Buyer's Funds (Some Title Companies)

Some title companies allow the buyer's funds from the B-C transaction to fund the A-B transaction. This effectively costs you nothing. However, many title companies won't do this — verify in advance.

Costs

• Two sets of closing costs (buyer side and seller side)
• Transactional funding fee: 1-2% of the A-B purchase price
• Title insurance on both transactions
• Recording fees for both deeds
• Estimate: $3,000-7,000 in total double close costs

These costs must be factored into your deal analysis. Double closing is more expensive than assignment but justified when the spread is large enough or assignment isn't an option.

Title Company Requirements

Not every title company handles double closings. Before your first deal:

• Ask: "Do you handle simultaneous or same-day closings?"
• Confirm they can coordinate both transactions
• Verify their process for funding (can buyer funds be used for the A-B?)
• Establish the relationship before you need it

The Bottom Line

Double closing is the go-to alternative when assignment isn't possible or your spread is large enough to justify the extra cost. You briefly own the property, keep your profit private, and work around assignment restrictions. Budget $3,000-7,000 in additional costs and use transactional funding if needed. Find a title company experienced in double closings before your first deal.