How to Do a Double Close in Real Estate: The Wholesaler's Definitive Guide

TL;DR: A double close lets you buy a property from a seller and sell it to your end buyer on the same day, using transactional funding to cover the gap instead of your own capital. The key requirement: both transactions close at the same title company on the same day. Most transactional funding fees run 1-2% of the purchase price (minimum $750-$1,000). Use double closes when contracts are non-assignable or when you want to maximize your spread without disclosing your wholesale fee to the end buyer.

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Most wholesalers start with the assignment model. You find a deal, put it under contract, assign the contract to your buyer for a fee, and walk away without ever touching the property. Clean. Fast. No capital required.

But the moment you try to buy a bank-owned property, a HUD home, or an MLS listing, you hit a wall. These contracts explicitly forbid assignment. The only legal path forward is the double close.

And here's what most wholesalers don't realize: once you understand how to do a double close in real estate, you open up an entirely different category of deals. You're no longer limited to off-market sellers who sign anything you put in front of them. You can compete for properties that require ownership at closing, and you can do it without tying up your own capital.

What Is a Double Close in Real Estate?

A double close is two back-to-back transactions that happen on the same day (or within a very short window). You buy the property from the seller in Transaction 1, then immediately sell it to your end buyer in Transaction 2.

The wholesaler takes title to the property temporarily. That's the critical difference from an assignment, where you never own it.

Here's the structure:

• A-to-B: Seller → Wholesaler (you buy at the contracted price)
• B-to-C: Wholesaler → End Buyer (you sell at a higher price)

Your profit is the difference between what you paid (A-B) and what you collected (B-C), minus transactional funding fees and closing costs.

The reason this works is that you're not using your own money to fund the A-B purchase. You're using short-term transactional funding from a lender who advances the capital for the acquisition. The moment you close the B-C sale, you repay the lender from the proceeds.

The Real Problem Double Closing Solves

You don't need a double close for most off-market deals. An assignment works fine when the seller signed a standard purchase agreement that lets you transfer the contract to a third party.

You need a double close in two situations:

1. The contract is non-assignable. Bank-owned properties (REO), HUD homes, Fannie Mae listings, and properties purchased through the MLS often come with contracts that explicitly state the agreement cannot be assigned to a third party. This is non-negotiable. Your only move is to buy it yourself and immediately resell it.

2. You want to hide your wholesale fee from the end buyer. In an assignment, your buyer knows you paid X and are selling for Y. They can calculate your assignment fee and sometimes push back on it. With a double close, the end buyer thinks they're buying directly from a motivated seller. Your profit is invisible. The B-C contract shows the agreed purchase price but doesn't expose the A-B price you negotiated.

This matters more than most wholesalers think. On a $200,000 deal, if your end buyer knows you locked in the seller at $160,000, you're defending a $40,000 spread. If they think they're buying from a desperate seller at market value, the same deal feels like a fair transaction.

How Transactional Funding Makes It Work

You can't execute a double close without capital for the A-B transaction. Unless you have tens of thousands sitting idle, you need transactional funding.

Transactional funding is a short-term bridge loan covering the purchase side of the deal. It's not a mortgage. It's not a hard money loan. It's a 24-to-72-hour loan secured by the end buyer's funds and the property itself.

Here is what transactional funding looks like in practice:

• Approval is based on the deal, not your credit. The lender checks the purchase contract, the resale contract, and proof that your end buyer has funds available. No credit score, no tax returns, no bank statements.
• The fee is typically 1-2% of the funded amount. For a $150,000 purchase, expect $1,500-$3,000 in transactional funding fees. Most lenders also charge a minimum fee ($750-$1,000) and a small wire processing fee (DoubleClose.com fee schedule).
• Duration is one to three days. The loan expires once both transactions close. If the B-C sale falls through, you either extend the funding (at higher rates) or you lose the deal.
• Both transactions must close at the same title company. This is the lender's non-negotiable requirement because it secures their collateral position.

One warning from real-world experience: always verify your end buyer's financing before you lock in transactional funding. If the buyer backs out after you've funded the A-B transaction, you own the property and owe the lender. Most wholesale deals that go sideways happen because someone overstated a buyer's readiness.

The Step-by-Step Double Close Process

Step 1: Find the property and negotiate the A-B contract. You negotiate directly with the seller. The contracted price is what you pay. On a non-assignable deal, the seller doesn't know (or care) what you'll sell it for downstream. They just want to close.

Step 2: Pre-qualify your end buyer before signing the A-B contract. This is non-negotiable. You should have a signed B-C purchase agreement with your end buyer before you ever put your signature on the A-B side. If the B-C falls through, you're the owner of a distressed property with a bridge loan ticking against you.

Step 3: Apply for transactional funding. You send the lender your A-B contract, your B-C contract, proof of your end buyer's funds (a bank statement or a hard money letter), and the title company's contact information. Most lenders turn these around within a few hours.

Step 4: Close the A-B transaction at the title company. The lender wires the purchase funds. You buy the property from the seller. You now own it, briefly.

Step 5: Close the B-C transaction immediately after. Your end buyer's funds arrive at the same title company. You sell the property to them at the higher price. The lender is repaid from the proceeds. You receive the difference minus fees and closing costs.

The entire sequence can happen in a single afternoon if your title company is experienced with double closes and your documents are clean.

Double Close vs. Assignment: Which Should You Use?

Assignment is faster, cheaper, and simpler. Use it whenever the contract allows it.

Double close is the tool you reach for when assignment isn't available or when you want to keep your spread confidential.

Here's a direct comparison:

	Assignment	Double Close
Requires capital	No	Yes (via transactional funding)
Contract requirement	Must allow assignment	Must allow you to take title
Fee visibility to buyer	Yes (buyer sees your spread)	No (spread is invisible)
Typical additional cost	$0	1-2% of purchase price in funding fees
Title company requirement	Standard	Must handle both transactions
Complexity	Low	Medium
Time to close	1-2 weeks	Same day

The cost difference matters on larger deals. On a $300,000 property, a 1.5% transactional funding fee is $4,500. If your assignment fee would have been $15,000, the net after funding fees is $10,500. Still worth doing. On a $100,000 property with a $5,000 assignment fee, a $1,500 funding fee leaves you with $3,500. Still worth it, but the margin is tighter.

The real advantage of the double close isn't keeping your fee invisible. It's access. You're competing for deals that assignment-only wholesalers actually cannot touch.

Where to Find Deals Worth Double Closing

A double close is only as good as the deal underneath it. You need properties selling at a discount significant enough to cover your funding fees, closing costs on two transactions, and still leave a meaningful profit.

DistressIQ shows properties with verified distress signals (tax delinquency, pre-foreclosure, code violations, probate, lis pendens) sourced directly from county records. These are the deals that attract motivated sellers willing to negotiate below-market prices. The distress creates the discount. The discount creates the spread. The spread funds the double close.

When you're evaluating a deal for double close potential, ask:

• Is the A-B price at least 15-20% below ARV?
• Does my end buyer have verified funds or a hard money letter on file?
• Is the property clean enough to resell without a lengthy rehab?
• Does my title company have experience with simultaneous double closings?

If all four check out, it's a legitimate double close candidate.

Common Double Close Mistakes That Kill Deals

Skipping end-buyer verification. The most expensive mistake in wholesaling is signing an A-B contract before confirming your buyer is actually ready to close. On a double close, this mistake is amplified because you're on the hook to the lender.

Using a title company unfamiliar with double closes. Not all title companies know how to handle simultaneous A-B and B-C transactions. An inexperienced escrow officer can delay one side long enough to blow the funding timeline.

Underestimating total costs. Double closing costs include title insurance for both sides, two sets of recording fees, transfer taxes, and transactional funding fees. On a $200,000 property, expect $4,000-$7,000 in total transaction costs. Price your spread accordingly.

Not disclosing material facts to your end buyer. Even though you don't show the A-B price, you are legally required to disclose known defects in the property. Hiding material facts to protect your spread is a lawsuit waiting to happen.

Double Close Frequently Asked Questions

How long does a double close take?

Both transactions typically close on the same day. With an experienced title company and pre-approved transactional funding, the full sequence can take as little as four to six hours. Most lenders require same-day closing as a condition of the loan.

Do you need good credit to get transactional funding?

No. Transactional funding lenders do not run credit checks. Approval is based on the property, the signed contracts, and proof that your end buyer has available funds. Your personal credit score is irrelevant.

What happens if the end buyer backs out during a double close?

If the B-C sale falls through after the A-B transaction has funded, you own the property and owe the transactional lender. At that point you either extend the funding (which converts to hard money loan rates), find another buyer quickly, or sell the property at a loss. This is why pre-qualifying your end buyer before signing the A-B contract is not optional.

Can you do a double close without transactional funding?

Only if you have enough cash to fund the A-B purchase yourself. Most wholesalers do not. Transactional funding exists specifically to let wholesalers execute double closes without using their own capital.

How much does transactional funding cost?

Most lenders charge 1-2% of the funded purchase amount, with a minimum fee of $750-$1,000 per transaction. Some lenders charge a flat $750 on deals under $75,000. For deals over $1 million, fees are negotiated on a case-by-case basis. There are no monthly interest charges since the loan is paid off within one to three days.

Is a double close legal?

Yes, when properly structured and conducted through a licensed title company or real estate attorney. Double closes are a standard practice in real estate wholesaling. The legal risk comes from misrepresenting property condition or failing to disclose known defects, not from the double close structure itself.

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