Double Closing

A double closing is two back-to-back transactions in which a wholesaler buys a property from the seller and immediately resells it to an end buyer, briefly taking title.

A double closing is two complete transactions back to back: the wholesaler buys the property from the seller (the A-to-B closing), then immediately resells it to the end buyer (the B-to-C closing) — often the same day, at the same title company. Unlike an assignment, the wholesaler actually takes title, even if only for an hour, and the end buyer never sees the original contract price.

Example: you contract a house at $150,000 and have an end buyer at $180,000. Assigning would put your $30,000 fee on the settlement statement for everyone to see. Instead you close the purchase at $150,000 — funded by transactional funding, a short-term loan that exists for exactly this — then close the resale at $180,000 minutes later. The loan is repaid out of the second closing, and you keep the spread minus loan fees and a second set of closing costs.

What beginners get wrong: they assume the end buyer's money can pay for the first closing. Most title companies will not run a "dry" closing that way — the A-to-B leg needs its own funds, which is what transactional funding is for. They also forget the cost: two closings mean two sets of fees, so a double close only beats an assignment when the spread is big enough or the contract cannot be assigned. Rules on double closings vary by state and title company — this is not legal advice.