Transactional Funding · Education

What Is a Double Close in Real Estate and How Does It Work?

By Deal Rescue Capital  ·  7 min read

A double close — also called a simultaneous close or back-to-back closing — lets you buy and sell a property in two separate back-to-back transactions, often on the same day. It's one of the most powerful tools in real estate wholesaling and investing. Here's how it works.

The Basic Concept

In a standard real estate assignment, a wholesaler puts a property under contract and then assigns that contract to an end buyer for a fee. Simple, clean, and requires no capital.

But assignments don't always work. Some sellers won't allow them. Some lenders won't fund a deal where the buyer is assigning their contract. Some title companies won't facilitate them. And in some cases, the wholesaler simply doesn't want to disclose their spread to the end buyer.

That's where the double close comes in. Instead of assigning the contract, the wholesaler actually purchases the property — and then sells it to the end buyer in a second, separate transaction. Two closings. Two sets of paperwork. Often the same day.

How a Double Close Works Step by Step

1
Wholesaler gets the property under contract (A-B Contract) The wholesaler negotiates with the original seller and signs a purchase and sale agreement. This is the A-B contract — A is the original seller, B is the wholesaler.
2
Wholesaler finds an end buyer (B-C Contract) The wholesaler finds a buyer willing to pay more than the A-B contract price. A second purchase and sale agreement is signed between the wholesaler (B) and the end buyer (C).
3
Transactional funding is arranged for the A-B close The wholesaler needs capital to actually purchase the property from the original seller. Since they're selling it immediately, they use transactional funding — short-term capital repaid from the B-C proceeds.
4
A-B close happens first The wholesaler purchases the property from the original seller using the transactional funder's capital. Title transfers to the wholesaler. This is the first closing.
5
B-C close happens immediately after The wholesaler sells the property to the end buyer. The second closing happens the same day or within days. The end buyer's funds flow in, repay the transactional funder, and the wholesaler pockets the spread.
Example — The Numbers

A-B Contract: Wholesaler buys from seller at $175,000

B-C Contract: Wholesaler sells to end buyer at $215,000

Transactional funding fee: $2,500 (flat fee for same-day close)

Closing costs (both sides): ~$4,000

Wholesaler's net profit: ~$33,500

Double Close vs. Assignment — Which Should You Use?

Assignment

Best when...

The seller allows it, the end buyer's lender doesn't object, and you don't mind disclosing your spread. No capital required. Simpler and cheaper.

Double Close

Best when...

The seller prohibits assignments, the end buyer's lender won't fund an assignment, or you want to keep your spread private. Requires transactional funding but gives you full control.

Why Wholesalers Choose the Double Close

Privacy of Spread

In an assignment the end buyer sees exactly what you're making — your assignment fee is right there in the paperwork. In a double close, the end buyer only sees the B-C transaction. Your profit on the A-B side is your business.

Seller Restrictions

Many sellers — especially banks, REO sellers, and institutional sellers — explicitly prohibit assignments in their purchase agreements. A double close lets you work around that restriction while still flipping the deal.

Lender Requirements

If the end buyer is using financing, their lender may object to purchasing a property that's being simultaneously assigned. A double close creates a clean title chain — the end buyer is buying from a seller who actually owns the property.

Large Spreads

When the spread between your A-B and B-C price is very large, some end buyers or their agents may balk at the assignment fee. A double close keeps that number private.

The Role of Transactional Funding

The biggest practical challenge with a double close is the capital requirement for the A-B leg. You need to actually purchase the property before you can sell it — and not every wholesaler has $175,000 sitting in their account.

Transactional funding solves this. A transactional funder provides the capital to close the A-B transaction, takes a security interest in the property, and gets repaid within hours or days from the B-C proceeds. The fee is typically a flat percentage of the A-B purchase price.

Key requirement: The transactional funder needs to see a confirmed end buyer with the ability to close. They're not funding a deal where the B-C side is uncertain — the whole structure depends on the back-to-back close happening as planned.

What You Need to Execute a Double Close

Common Double Close Mistakes

Is a Double Close Legal?

Yes — double closes are legal in all 50 states. They are a standard real estate transaction structure used by investors and wholesalers nationwide. The key is to use experienced professionals — a title company and closing attorney who understand the structure — and to disclose appropriately where required.

Some states have specific disclosure requirements. When in doubt, consult a real estate attorney in your state before executing your first double close.


The Bottom Line

The double close is one of the most useful tools in real estate wholesaling and investing. It gives you control, privacy, and flexibility that assignments don't always allow. And with transactional funding available, the capital requirement is no longer a barrier.

If you have a double close coming up and need same-day or short-term transactional funding for the A-B leg, submit your deal for review. We move fast and we understand how these transactions work.

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