Double Closing vs Assignment of Contract: Which Should You Use?

Two Paths to the Same Payday

Every wholesale deal exits one of two ways: you assign your contract to your buyer, or you double close. Both result in you getting paid. But the mechanics are different, the costs are different, and the right choice depends on the specific deal. Understanding both — and knowing when to use each — separates professional wholesalers from beginners guessing their way through transactions.

Assignment of Contract: The Basics

In an assignment, you never take title to the property. You sign a purchase agreement with the seller, then sign a separate assignment agreement transferring your contract rights to your end buyer. The title transfers directly from seller to buyer.

How you get paid: Your assignment fee appears on the closing statement. The title company distributes it at closing.

Pros of Assignment:

Simpler — one closing, one set of closing costs
No funding required from you
Less paperwork and fewer moving parts
Faster to close

Cons of Assignment:

Your assignment fee is visible to the seller on the closing statement in some cases
Some sellers refuse once they learn you're assigning
Not usable if the seller signs a non-assignment clause

Double Closing: The Basics

In a double closing (also called a simultaneous close or back-to-back closing), you actually purchase the property from the seller (the A-to-B transaction), then immediately resell it to your buyer (the B-to-C transaction). Two closings happen on the same day or within a very short window.

How you get paid: You pocket the spread between your purchase price and your sale price.

Pros of Double Close:

Your profit margin stays private (seller doesn't see what you made)
Works when sellers have non-assignment clauses
You appear as a legitimate buyer throughout, not a middleman
Stronger position with institutional sellers (banks, REOs)

Cons of Double Close:

Requires funding for the A-to-B leg (even temporarily)
Two sets of closing costs
More paperwork, more coordination
Transactional funding costs money (typically 1-2% of A-B purchase)

Side-by-Side Comparison

Assignment of Contract

One closing
No funding needed
Fee visible on closing statement
Works when seller is flexible
Best for: most standard off-market deals
Cost: minimal (no extra closing costs)

Double Closing

Two closings
Requires bridge/transactional funding
Profit stays private
Works even with non-assignment clauses
Best for: larger margins, REOs, sticky sellers
Cost: 1-2% transactional funding + extra closing costs

When to Use an Assignment

Use an assignment when:

The seller is a flexible individual who doesn't object to you assigning
Your margin is reasonable (under $30,000) — large fees sometimes make sellers uncomfortable once they see them
You don't have transactional funding lined up and can't afford the double close cost
Speed matters — one closing is faster than two
The seller signed your contract with "and/or assigns" language included

Always use "buyer and/or assigns" language in your purchase agreement from day one. This preserves your option to assign without needing to renegotiate later.

When to Use a Double Close

Use a double close when:

Your assignment fee is very large (often $30,000+) — sellers sometimes blow up deals when they see large fees; a double close keeps it private
The seller has non-assignment language in the contract
You're buying from a bank, hedge fund, or institutional seller that won't allow assignments
Your end buyer doesn't want the seller to know their purchase price
The seller would feel deceived or renegotiate downward if they knew your profit

Some title companies won't facilitate double closings where the B-to-C funding is used to fund the A-to-B leg. Use a transactional funding company or your own bridge capital for the A-to-B leg, and close them sequentially.

Transactional Funding: The Bridge Capital Solution

If you don't have your own cash to fund the A-to-B leg of a double close, transactional funding companies provide same-day bridge capital. Here's how it works:

You find a deal and an end buyer simultaneously
Transactional funder provides capital to close A-to-B (you buying from seller)
B-to-C closes immediately after (your buyer buying from you)
Transactional funder is paid back from B-to-C proceeds
You keep the spread minus the funding fee (typically 1-2% of A-to-B price)

Your Net Profit = (B-to-C Sale Price) - (A-to-B Purchase Price) - (Transactional Funding Fee) - (Closing Costs x 2)

The Margin Question: Does the Double Close Cost Make Sense?

This is the key decision point. If your gross spread is $10,000 and a double close costs $2,500 in funding and extra closing costs, you net $7,500 instead of $10,000 on an assignment. Is the privacy worth 25% of your profit?

Usually the answer is: only if the seller would walk or renegotiate if they saw the fee.

Most experienced wholesalers default to assignments for deals under $30,000 in profit and use double closes selectively for large-margin deals or institutional sellers. This balances simplicity with privacy.

The Decision Framework

Ask yourself these questions for every deal:

Use Assignment if:

Seller is a motivated individual with no attorney
Your fee is under $25,000-$30,000
"And/or assigns" is in your contract
Speed to close matters

Use Double Close if:

Seller used an attorney or has non-assignment language
Your margin is large enough to justify the cost
Seller is a bank, hedge fund, or estate attorney
Your buyer specifically requests it

Run the Numbers First — Always

Whether you assign or double close, the deal math must work. Know your ARV, your rehab, and your buyer's price before you decide anything else.

Run the Numbers on Every Deal in Seconds

Before you decide on assignment or double close, you need to know if the deal works at all. DealBeast calculates ARV, MAO, and deal grade for any property in under 30 seconds. 1,500+ investors rely on it daily.

Try free for 7 days at dealbeast.co