Double Close vs. Assignment: Which Strategy Protects Your Spread?

"If your assignment fee is bigger than the seller's profit, they might walk. If it's bigger than the buyer's margin, they'll complain. The double close is how you stay invisible."

Wholesaling real estate is essentially the business of solving problems for a fee. But как you collect that fee matters. There are two primary ways to monetize a wholesale deal: the **Assignment of Contract** and the **Double Closing** (also known as a Simultaneous Closing).

While assignments are the "default" for many beginners, professional wholesalers know that as deal sizes grow, the double close becomes an essential tool in the arsenal.

The Assignment: Simple, but Exposed

In an assignment, you sell your rights in the purchase agreement to an end-buyer for an "Assignment Fee." The end-buyer sees exactly what you're making because the assignment fee is listed right there on the settlement statement (HUD-1 or Alta).

• Pros: Zero capital required, lower closing costs, very simple.
• Cons: Full transparency. If you're making $30,000 on a $100,000 house, the buyer or seller might feel "cheated" and try to circumvent you.

The Double Close: Professional & Private

In a double close, there are two separate transactions: A to B (Seller to You) and B to C (You to End Buyer). They happen on the same day, often back-to-back at the same title company.

• A to B: You buy the property from the seller. This requires capital (Transactional Funding).
• B to C: You sell the property to your end-buyer.

Because these are two separate closings, the seller never sees your profit, and the buyer never sees the original purchase price. Your spread is protected.

When Should You Double Close?

We generally recommend a double close in three specific scenarios:

• High Spreads: If your profit is $15,000 or more, disclosures can lead to "buyer's remorse" or seller frustration.
• Non-Assignable Contracts: REO (bank-owned) properties and many HUD houses have strict "no assignment" clauses. A double close bypasses this entirely.
• Professionalism: When working with high-end institutional buyers, a double close looks like a standard sale, keeping the transaction cleaner.

The Role of Transactional Funding

To pull off a double close, you need the money to fund the "A to B" side. This is where La Casa De Cash comes in. We provide the capital for that first transaction, which is then paid back immediately when the second transaction ("B to C") funds. Our fee is a tiny fraction of your protected spread.