A double closing is two back-to-back transactions: the wholesaler (or investor) actually purchases the property from the seller (closing one) and resells it to the end buyer (closing two), often the same day at the same title company. It is used when a contract forbids assignment, when a seller requires it, or when the spread is large enough that the parties prefer separate settlements. It costs more than an assignment — two sets of closing costs — and typically requires transactional funding or the end buyer's funds structured through the title company, per their rules.
The formula / structureInvestor's Gross Spread = Resale Price − Purchase Price (minus two sets of closing costs and any funding cost)
Double Closing: a worked example
Worked example. Buy at $95,000 (closing one), resell at $112,000 (closing two) the same day. Gross spread $17,000, minus roughly $4,000–$5,000 of combined closing and short-term funding costs in this example — the price of using two closings instead of one assignment.
What affects Double Closing
- Title company willingness and procedures for same-day resale
- Transactional funding cost and availability
- Contract or lender restrictions on assignment
- Size of the spread (thin spreads cannot carry double costs)
Get the Seller Call Script — free.
Word-for-word how a first seller call should sound — warm, honest, zero pressure.