Double close or assignment: which one, and when

The mechanical difference

In an assignment, the original buyer hands you their contract and you close directly with the seller. There is one closing and one set of closing costs. In a double close there are two closings: the wholesaler buys from the seller, then sells to you, usually minutes apart at the same title company.

What each one costs

An assignment is cheaper because there is one set of costs. A double close means two sets of closing costs, two recordings, and often transactional funding for the few minutes the wholesaler owns the property. Depending on the state and the price, that difference runs from around a thousand dollars to several thousand.

Why anyone pays for the double close

Three reasons, and they are all legitimate. The assignment fee is large enough that the wholesaler does not want it on the settlement statement in front of the seller. The original contract prohibits assignment. Or the state has rules that make the assignment structure awkward or require a licence, and the double close sidesteps the question.

What it means for you

Usually very little. Either way you are buying a house at an agreed price on an agreed date. The one practical difference is what you see: in an assignment you generally see the original contract and the fee, and in a double close you see your own purchase and not what the wholesaler paid. If that transparency matters to you, ask for the assignment structure and be willing to hear no.

Where the rules differ

Several states have tightened the rules around wholesaling in recent years, and some now require a licence for the activity itself rather than the structure. This is worth an hour with an attorney in each state you buy in, once, rather than an assumption carried across state lines.

Transactional funding, briefly

In a double close the wholesaler needs the purchase money for the few minutes they own the property. Transactional funding exists for exactly that, and it is priced as a flat fee rather than interest, because the loan lives for about as long as it takes to sign two sets of documents. It is their cost rather than yours, but it explains why a wholesaler would rather assign whenever the numbers allow it.

What to ask for, either way

The same three things regardless of structure. The full purchase agreement rather than a summary of it. Written confirmation of who is holding earnest money and on what terms. And a closing date you have checked against your own funding rather than simply agreed to. The structure changes the paperwork. It does not change what actually protects you.