Glossary · wholesaling

What is Double Close?

A double close (also called a simultaneous close) is a wholesaling exit where the wholesaler actually buys the property from the seller and immediately resells to the end buyer in two back-to-back transactions. Used when an assignment isn't allowed or when the wholesaler wants to hide their margin.

In an assignment, the end buyer sees the original contract price and knows exactly what the wholesaler is making. In a double close, the wholesaler closes the A-to-B transaction (seller to wholesaler) and then immediately closes the B-to-C transaction (wholesaler to end buyer) — the end buyer only sees the B-to-C contract.

Double closes require the wholesaler to fund the A-to-B transaction, even if only for minutes. Options include transactional funding (specialty short-term loans designed for this), the end buyer's funds (in some states with specific title-company support), or the wholesaler's own cash.

Double closes are more expensive than assignments — two sets of closing costs, two transfer taxes in some states, transactional funding fees of 1-2%. They're justified when the spread is large enough to absorb the friction, when state law requires it, or when keeping the margin confidential matters to the wholesaler's buyer relationship.

Worked example

Wholesaler A buys from seller S for $100,000 at 10:00 AM. At 10:30 AM, wholesaler A sells to end buyer B for $130,000. Net to wholesaler before costs: $30,000. After transactional funding (~$2,000) and double closing costs (~$5,000): $23,000.

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