Double Close

What Is a Double Close?

A double close — also called a simultaneous close or same-day flip — is a transaction structure where the wholesaler (Party B) completes two separate real estate closings in rapid succession. In the first transaction (A-to-B), the wholesaler purchases the property from the original seller (Party A) at the negotiated below-market price. In the second transaction (B-to-C), the wholesaler immediately sells the property to the end buyer (Party C) at a higher price. The difference between the two prices, minus closing costs, is the wholesaler's profit. Both transactions typically occur on the same day, often within hours or even minutes of each other at the same title company.

Why Use a Double Close Instead of Assignment?

There are several reasons wholesalers choose a double close over a simple assignment. First, when the profit margin is large — say $40,000 or more — an assignment makes that fee visible on the closing statement to both seller and buyer, which can cause either party to feel the deal is unfair and attempt to renegotiate or back out. A double close creates two separate closing statements, so neither party sees the wholesaler's spread. Second, some contracts prohibit assignment but do not prevent the buyer from closing and immediately reselling. Third, some states have regulations that make assignments legally complex, while a standard purchase-and-sale requires no special licensing.

Transactional Funding

The challenge with a double close is that the wholesaler needs funds to complete the A-to-B purchase before receiving the proceeds from the B-to-C sale. Transactional funding solves this problem. Transactional lenders provide short-term capital — sometimes for just a few hours — secured by the B-to-C contract as proof that the wholesaler has an immediate exit. The lender wires the purchase funds for the A-to-B closing, and as soon as the B-to-C closing funds, the transactional lender is repaid. Transactional funding fees typically range from 1–2% of the A-to-B purchase price for same-day closings, plus a flat fee. Some title companies will allow the C buyer's funds to be used for the A-to-B closing, eliminating the need for transactional funding entirely.

Title Company Requirements

Not all title companies will facilitate double closings. Some have internal policies against same-day flips, and others are unfamiliar with the process. Before committing to a double close strategy, establish relationships with 2–3 title companies in your market that are experienced with simultaneous closings and willing to handle the mechanics. Key requirements include: the title company must be comfortable closing both transactions the same day, they must be willing to use the C buyer's funds to complete the A transaction (or accept transactional funding), and they must provide separate closing statements for each transaction. Finding investor-friendly title companies is one of the first steps any serious wholesaler should take.

A-to-B Then B-to-C Mechanics

The typical double close proceeds as follows: the A-to-B closing occurs first — the wholesaler (or their transactional lender) wires purchase funds, the deed transfers from seller to wholesaler, and the transaction is recorded. Immediately after, the B-to-C closing begins — the end buyer's funds are wired, the deed transfers from wholesaler to end buyer, the transactional lender is repaid, and the wholesaler receives their profit. The entire process can take as little as one hour if both transactions are scheduled back-to-back at the same title company. Some wholesalers close A-to-B in the morning and B-to-C in the afternoon, while others close them within minutes.

Costs vs. Assignment

A double close is more expensive than an assignment because it involves two full real estate transactions, each with their own closing costs. The wholesaler pays closing costs on both the A-to-B purchase and the B-to-C sale, including title fees, recording fees, transfer taxes (in applicable states), and transactional funding costs. Total transaction costs for a double close typically run $3,000–$8,000, compared to nearly zero for an assignment. However, a double close protects your profit margin from scrutiny, prevents deal blowups caused by visible assignment fees, and allows you to wholesale properties with non-assignable contracts. For deals with spreads above $15,000–$20,000, the additional cost of a double close is usually worthwhile for the confidentiality it provides.