Quick answer: A wholesale double close is two back-to-back purchases: you buy from the seller (A-B), then sell to your end buyer (B-C). It keeps your spread private but adds a second set of closing costs and often transactional funding at roughly 1% to 2%. An assignment is cheaper. With DispoKey, either structure gets a 72-hour buyer match and a 60/40 split in your favor.
Every wholesaler eventually faces a deal where the assignment fee feels too visible. The seller agreed to $140,000, your buyer will pay $175,000, and you know that $35,000 line on the assignment will draw questions from someone at the closing table. That is the moment people start asking about a double close. It is a legitimate tool, but it is not free, and it is not a way around disclosure or licensing rules.
Assignment vs double close at a glance
In an assignment, you transfer your rights under the purchase contract to the end buyer for a fee, and there is one closing. In a double close, you actually take title for a moment and then resell it, which creates two closings, two settlement statements and two deeds.
| Factor | Assignment of contract | Double close |
|---|---|---|
| Closings | One | Two (A-B, then B-C) |
| Your spread visible to | Seller and buyer on one settlement statement | Only the side of each closing you are on |
| Your cash needed | Usually only EMD | A-B purchase funds (cash or transactional loan) |
| Extra costs (examples) | Assignment fee only | Second closing fees, possible transfer tax twice, funding fee |
| Contract must allow it | Yes, must be assignable | Works even if non-assignable |
| Best fit | Modest spreads, cooperative buyers | Large spreads, non-assignable contracts, sensitive sellers |
How a double close works, step by step
- Sign the A-B contract with the seller and open title.
- Sign a separate B-C contract with your end buyer at the resale price.
- Line up A-B funds: your cash, a transactional lender or, where title allows, a structure using the buyer's funds.
- Close A-B: you pay the seller and receive the deed.
- Close B-C: usually minutes or hours later, the buyer pays you, the transactional lender is repaid and your spread is wired to you.
Tell the title company at the start that you plan back-to-back closings. Some title underwriters will not insure same-day resales, and some require the funds for A-B to be in place independently of B-C.
What transactional funding costs
Transactional lenders fund the A-B purchase for a very short window, often one to a few days. Pricing is commonly a flat fee or about 1% to 2% of the amount funded, with a minimum. They usually require a fully executed B-C contract and the end buyer's proof of funds before they commit.
Worked example: what the double close really costs (illustrative numbers)
Using the deal above: A-B price $140,000, B-C price $175,000. These are labeled example figures; your title and funding quotes will differ.
- Assignment: $35,000 fee, minus your share of title charges ($600) = about $34,400.
- Double close: $35,000 spread, minus transactional funding at 1.5% of $140,000 ($2,100), A-B buyer-side closing costs ($1,800), B-C seller-side closing costs ($1,500) and transfer tax where it applies on the resale ($700) = about $28,900.
Here the double close costs roughly $5,500 more. That can be worth paying if the assignment would have collapsed the deal, but on a $12,000 spread it rarely makes sense. Run your own version with the wholesale calculators.
Title, seasoning and the end buyer's loan
Same-day resales matter most when the end buyer is using a loan. FHA rules in 24 CFR 203.37a restrict FHA financing on homes resold within 90 days of the seller's acquisition, and conventional lenders may also ask about recent prior sales. Most wholesale end buyers pay cash or use hard money, so this is usually manageable, but confirm it before you sign the B-C contract.
Ask title early about three things: whether their underwriter insures back-to-back closings, whether they will hold the B-C buyer's funds before A-B closes, and how they handle transfer tax on both deeds in your state.
Legal and disclosure considerations
A double close is not a way to avoid honesty with your seller. Several states now regulate how wholesalers market equitable interests in contracts and require written disclosures. Some treat repeatedly marketing properties you do not own as activity that requires a real estate license. The structure you choose does not change those obligations. Check your state real estate commission's rules before you choose a structure.
How DispoKey handles either structure
When you submit an off-market contract, DispoKey matches it with vetted cash buyers within 72 hours. You choose the closing structure with your attorney and title company; we work within it. The fee split is 60/40 in your favor, with $0 upfront. On-market deals are not accepted.
When DispoKey may not be your best option
If you already have a strong buyer lined up for this deal at your target price, close it yourself and keep 100%. A JV partner earns its share when you need a buyer fast, your list is thin in that market, or the deal needs a wider reach. Read our guide on how to JV a wholesale deal to decide.
Key takeaways
- An assignment is one closing and cheaper; a double close is two closings and private.
- Budget for transactional funding, two sets of closing costs and possible double transfer tax.
- Confirm with title that their underwriter insures same-day resales.
- Check the end buyer's financing for seasoning limits before signing the B-C contract.
- Disclosure and licensing rules apply no matter which structure you use.
Have a contract that needs a buyer? Submit your deal for a 72-hour buyer match, explore the wholesaler hub, or read what dispo means in real estate.
