Double Close vs Assignment: Which Is Better for Wholesalers?

As a wholesaler, you have two main exit strategies: assign the contract or do a double close. Both get you paid, but they have very different implications for your deal flow, your profit margins, and your reputation.

What Is an Assignment?

An assignment is the simplest exit. You sign a purchase contract with the seller (A-to-B), then assign your rights in that contract to an end buyer (B-to-C) for a fee. You never actually take ownership of the property.

Pros: - No capital required - Fastest closing process - Minimal paperwork

Cons: - Your assignment fee is visible to both parties - Some sellers and buyers refuse assignments - Certain states restrict or regulate assignments - Title companies may not facilitate them

What Is a Double Close?

A double close (also called a simultaneous close or back-to-back close) involves two separate transactions. You purchase the property from the seller (A-to-B), then immediately resell it to your end buyer (B-to-C). Both transactions happen on the same day, often within hours.

Pros: - Your profit is confidential — neither party sees your spread - Works in states where assignments are restricted - More professional and accepted by title companies - Protects your business relationships

Cons: - Requires capital for the A-to-B purchase (this is where transactional funding comes in) - Slightly more paperwork and coordination - Small fee for transactional funding (typically 1%)

When to Use Each Strategy

Use an assignment when: - The fee is small and you don't mind disclosure - The buyer and seller are both comfortable with assignments - You're in a state with no assignment restrictions - Speed is the only priority

Use a double close when: - Your spread is large and you want to keep it private - The buyer or seller objects to assignments - You're operating in a regulated state - You want to build a more professional reputation

The Bottom Line

Assignments are simpler. Double closes are more versatile and protect your margins. Most experienced wholesalers use both strategies depending on the deal. If you're doing double closes, a reliable transactional funding partner makes the process seamless.