I primarily wholesale real estate in Nevada, specifically in the Las Vegas and Henderson markets. Nevada is an investor-heavy market, so assignment deals and investor-friendly title companies are common, which allows wholesalers to move quickly." My preferred closing method depends on the deal. I use contract assignments when it's a straightforward investor-to-investor transaction, but I switch to double closings when I want to protect my spread or when a seller or buyer may not fully understand or agree to an assignment. The main benefit of contract assignment is simplicity. There's only one closing, no need for transactional funding, and far lower closing costs. It's fast, clean, and ideal when all parties understand wholesaling and the profit is reasonable. Double closings offer privacy and flexibility. They're valuable when the assignment fee is large and I don't want my end buyer or seller to see the spread, or when a seller might object to a wholesaler profiting. Double closing lets you complete both sides quietly and maintain control. When finding transactional funding for a double close, look for lenders that specialize in wholesale transactions. You want a funder who can provide 24-48 hour funding, no credit check, and understands A-to-B and B-to-C deal flow. The best transactional lenders will issue proof-of-funds letters and only charge a flat fee or small percentage. To successfully double close, communication and timing are everything. Line up your end buyer first, work with a title company familiar with investor deals, and make sure both closings are scheduled back-to-back. When executed properly, the seller never interacts with the end buyer, and both parties walk away satisfied. If you need additional insight on assignment restrictions, title differences by state, or how to structure JV deals, I'm happy to expand further. Rich Kaul Real Estate Investor & Co-Owner, 702 Cash Buyers Las Vegas, NV https://702cashbuyers.com
Founder, Real estate expert and investor, Business owner. at Eaglecashbuyers
Answered 6 months ago
Every market teaches you a different lesson. In Dallas, for example, you're dealing with volume and speed while In South Florida, people want to know you before they do a deal with you. Across the country, wholesalers use different methods, but the fundamentals are the same; find discounted properties, get them under contract and resell that contract to an investor. Most wholesalers agree that contract assignments are the simplest way to close a deal. It's straightforward, you assign the purchase contract to your end buyer, collect your assignment fee, and you're out. There's no need for two closings or extra funding. It's clean. However, not everyone sticks with assignments and some prefer double closings. In certain cases, assignments expose your profit. If you're making $25,000 or more, some buyers might get cold feet. A double close keeps both sides separate. The seller doesn't know what you made, and the buyer only sees your end price. Assignment is efficient. It's faster, and requires almost no capital. You don't need to fund the transaction yourself. You just need a well-drafted contract and a title company that understands wholesale deals. On the other hand, double closings, where the wholesaler buys and then resells the property on the same day or within a few days offer a level of privacy and professionalism that some say is worth the extra step. When I'm doing bigger deals or working with skeptical sellers, I double close. It helps maintain credibility. The seller sees me as the buyer, and the end buyer sees me as the seller. Another benefit is control. If something goes wrong on the buyer's side, you still hold the property. That gives you leverage. To execute a double close, you need transactional funding or flash cash. It is short-term financing used to fund the A-to-B side of the transaction until the B-to-C side closes.Talk to your title company. They often have relationships with lenders who specialize in transactional funding. It's better than cold-calling random lenders. Be upfront about your buyer, and your exit strategy because lenders don't like surprises. Sometimes a 2% fee with guaranteed same-day funding is better than 1% with delays. In double closings, time kills deals, so it's not always about the lowest rates. To successfully close, line up both closings back-to-back. Ideally, your buyer's closing happens within hours of your purchase and the funds from your end buyer pay off your initial purchase loan.
I wholesale real estate in Missouri primarily but I also invest personally there. The contract assignments over the years have been the easiest and least expensive tool to use to close most wholesale deals by reducing fees and making closing simple. The most advantageous aspect of an assignment of contract is the ability to transfer your interest in a property to another investor without ever taking title, thus saving time and double closing costs. But double closings can be beneficial when you don't want the seller or final owner to see your profit margin, or if either the seller or end buyer pushes back on assignment language. If you're double closing, the trick is to secure a reputable transactional funding lender - find someone in your area who can do short term same day deals and who will verify funds quickly and not charge interest, only fixed rates that are reasonable. I used to know a local private lender who did these types of deals, and the fact they were way more responsive was worth any lost in rate that I might have achieved with another lender, because timing was everything. To be able to double close you'll need to work closely with your title company and both the sellers' and buyers' closing agents, have all of your paperwork written up well, and set up good communication so funds for the double close flow smoothly. Preparation and trusted allies help smooth the process and safeguard your reputation on subsequent deals.
1. What state do you mainly wholesale real estate in? I'm investing in Missouri usually my best bet is focus on cities such as Kansas City St. Louis Springfield or maybe Columbia. 2. What is your preferred method of closing wholesale real estate deals? Being cash buyer lets you close fast, skipping bank loans, giving major edge that others don't have. Cash offers? They mean you can close quicker usually in like a week or two so you deal flows better and hey less chance of everything collapsing due financing 3. What are the benefits of contract assignment compared to double closing? Contract assignment, what's good about it? Assign your purchase contract to buyer for fee it's easier than owning property. Think of skipping hefty title transfer fees like title insurance it could save you money in start up costs. Usually just need one closing end buyer deals direct with OG seller. It cuts down steps and time on your end letting you close deals faster and way more efficiently. Because you're not taking ownership, financing usually isn't needed so you avoid paying out of pocket, true to your style. Think this lessens your financial risk and initial capital needs. Since title's not yours your liability risk drops say defects or liens before assignment maybe. Think of your role less as some middleman and more facilitating a deal. Contract assignments could give you better privacy since chain of title hides you own property which might help if you want investments discreet. Double closing sometimes called simultaneous or back-to-back closing works kinda like this: an investor buys property from a seller, often getting a discount, then flips it right away to a buyer who pays more. Often two closings happen maybe even on same day. Double closing offers some pretty solid advantages. Investor takes title controlling transaction offering pricing or terms flexibility. Investor buys property outright so assign ability clause isn't needed avoiding legal issues should seller hesitate. They usually let investors use standard purchase contracts; no changes needed. Buyer and seller know who's involved in property sale; might ease seller worries. Two separate closings mean paying closing fees twice so transaction costs increase. To resell, investor usually needs money to finalize property purchase risking capital need and potential funds. More moving parts, plus things might slow down somewhere.
I've handled real estate transactions in Indiana for over 30 years through my law practice, and I've seen both assignment and double closing methods work depending on the situation. Most of my clients in the Jasper area prefer assignments when possible because they're simpler and cheaper--you're just transferring your contract rights to the end buyer for a fee. The main benefit of assignment is transparency and lower costs. You typically pay $500-1000 in closing costs versus $2000-4000 for a double closing. However, assignment requires you to disclose your profit margin since all parties see the numbers, and some sellers or buyers don't like knowing the middleman's cut. I've had clients lose deals because sellers got angry seeing a $20,000 assignment fee. Double closing shines when you need privacy or the contract prohibits assignment. You're technically buying the property and immediately reselling it, so neither party knows your spread. For transactional funding, I've seen clients successfully use companies like LendingOne or local hard money lenders who specialize in same-day funding--expect to pay 1-2% of the purchase price plus fees. The key is having your end buyer's funds ready to close simultaneously or within 24 hours. My biggest advice: make sure your title company has experience with double closings and get them involved early. I've seen deals fall apart at 4 PM because the title company didn't understand the mechanics. Also, verify your end buyer's financing is solid before you commit to purchasing--I had a client nearly stuck owning a property when their buyer's funds didn't materialize.
Contract assignment is best done in an environment where, seller agreements permit assignment and the purchasing buyers are comfortable with the transparency of the mark up. There are 7-14 days my team has to close deals with an assignment fee ranging between 5,000 and 25,000 which is reported in settlement statements. This may cut a transaction cost and the legal exposure but not all sellers are willing to accept an assignment once they have found out the spread. Two close-outs hide the margins of wholesalers since two transactions are registered at different prices within hours or days. Both the sellers and buyers only see what they have agreed to sell and what they have negotiated to buy respectively. Transactional financing pays the A-B closing in 24 to 48 hours at 1 to 3% of the purchase price plus lender fees of about 500-1500 dollars. To ensure prompt decision making when it comes to finding valid transactional lenders, they should be vetted in terms of the speed of their funding and the documentation requirements since same-day closings would need wire transferred funding within the range of 2 to 4 hours. Timing of the back-to-back closings is made by escrow officers who are familiar with such transactions in such a way that the money which the B-to-C buyer funds get reaches their destination before the deadline on the A-to-B deal. Wholesalers who have a good relationship with title companies can carry out the double close without any problem since escrow teams know that there would be a time clash and arrange the disbursement to be made in a manner that will favor all parties. The laws of California disclosure must be properly documented as to ensure that both the transactions meet requirements of record keeping as well as to avoid any difficulties in title issues or fraud charges in future.
I mostly deal in wholesale real estate in Texas, where there is steady opportunity due to the state's growing population, high investor demand, and reasonably priced real estate. This market's diversity also makes it possible to choose between wholesale deals that are advantageous to both buyers and sellers, short-term rental conversions, and traditional flips. Contract assignment is usually my first choice for simple, low-risk transactions, but my preferred closing strategy varies depending on the deal's structure. It is effective, needs little funding, and enables a quicker turnaround, making it perfect for investors looking to gain traction. However, I tend to favor a double closing when the deal entails sensitive negotiations or larger margins. It offers privacy and safeguards my relationships with buyers and sellers, particularly when price discretion is crucial. The process is streamlined by contract assignments, which makes them valuable. It streamlines the transaction to a single closing and eliminates the need for you to finance the purchase. This makes it perfect for last-minute deals and accessible to new investors. But it also reveals the profit margin, which can occasionally cause friction with buyers or sellers who are not familiar with the procedure. Control is the advantage of a double closing. You can keep your assignment fee private and make sure the transaction looks like two separate sales by temporarily taking title. It can help prevent misunderstandings, especially in sensitive or competitive markets, even though it requires more coordination and higher costs. I advise concentrating on lenders who offer short-term bridge loans designed especially for wholesalers when searching for transactional funding. To keep both parties on the same page, a trustworthy partner will act swiftly, comprehend same-day funding requirements, and speak with title companies directly. When your closing window is short, reputation and speed are more crucial than interest rate. Coordination and preparation are crucial for a double close to be completed successfully. Before closing day, make sure both contracts are ready and clear, make sure your end buyer's money is safe, and, if at all possible, schedule both closings with the same title company back-to-back. This lowers risk and maintains an efficient flow of funds. It's one of the neatest and most expert methods to handle higher-value wholesale transactions when done correctly.
Real Estate Expert & Director of Acquisitions at JiT Home Buyers at JiT Home Buyers
Answered 6 months ago
I primarily wholesale in California, especially the Inland Empire and Los Angeles areas, where investor demand stays strong and deals move fast. My preferred method of closing depends on the situation: I lean toward contract assignments for simple, transparent deals but use double closings when confidentiality or larger spreads are involved. Contract assignments are great because they're quicker and cost-effective. You don't need to fund the purchase, which keeps things lean. But double closings are invaluable when you want to keep your profit private or operate in a stricter regulatory environment. When it comes to transactional funding, always work with lenders who specialize in short-term closings and have a solid reputation with wholesalers. Ensure your end buyer's funds are verified before the first closing; timing is everything in a double close. The key to a smooth double close is coordination. Choose an investor-friendly title company, line up both transactions for the same day, and make sure all paperwork is consistent. Small details make the difference between a delayed deal and a flawless close.
For the beginners in investing, focusing with areas that have strong population growth and investor activity may likely offer a better opportunity for profitable deals. Most people close wholesale real estate transactions using a process called double closing, which is essentially purchasing the property from a seller and then simultaneously reselling it to an end buyer (often on the same day). Thus the deals are transparent and fair without disclosing to either party what margin is involved. Contract assigning versus double closing has many more benefits. Without the use of transactional funding, and thus avoiding upfront costs and threat of loss of funds. You also incur fewer closing costs because one deal is happening, so you save money on that front. It's faster and less legwork, too, because the wholesaler simply flips the purchase agreement to an end buyer without ever closing on it. A good double closing deal source for transactional funding is something that you should be able to qualify for with ease. Start with some who describe themselves as short-term loan financiers (even "moneylender"), and that their specialty is in real estate acquisitions. Double closings only with these guys, as well they would! Find providers with easy-to-understand fees and low costs — not a lot of add-on fees on top. Some Lebauvs make sure that the lender has the ability to access fast capital - as little as 24-48 hours, for a quick turn-around. you are super active in a REI network groups or with wholesalers and if you can get referrals to borrow. Lastly, ensure that your lender understands your market and its local laws so you don't encounter any hiccups or delays.
1. We primarily wholesale real estate in Florida, but many other states as well. Wholesaling isn't our only strategy, we do actually buy properties and have done so since 2010. 2. Our preferred closing strategy today is doing an assignment, but we utilized double closings for many years as well. 3. You're not required to sign closing documents, fund the A-B transaction (many states), or incur closing costs for the A-B transaction. 4. When double closing the seller and buyer won't see your profit, the entity doesn't change on the closing statement (i.e. the entity on the seller contract), and you maintain the position as a buyer. 5. Referrals are typically the best route, as these will be trusted lenders. However, if you're new and don't have contacts yet, then checking local REIA group websites, Facebook groups in your target area (search for transactional funding and look for the ones with best feedback), Pay Per Lead companies will often have a transactional funding option, and you can do a search online in your area as well. Look for the top results with best reviews and terms. Helpful tip: You should only pay 1-2% of the sales price + closing costs for transactional funding. 6. A great title company or attorney depending on your state is key to a successful closing. You want to work with an experienced closer that understands this type of transaction. This will prevent cross communication errors between buyers and sellers, misunderstandings on transaction structure, and provide better terms on the A-B closing costs. Be very specific and intentional with your closer, and confirm you're both on the same page. They need to understand buyer and seller communication is separated, but you need to be included in all communication on both sides. You need to review and approve closing statements before being sent to anyone else in the transaction. This prevents any overlap or incorrect closing documents being sent to the wrong side. You need to be very involved with both sides of the transaction to ensure a smooth closing process.
I mainly wholesale real estate in Michigan, focusing on single-family homes in working-class and transitional neighborhoods that attract both fix-and-flip and buy-and-hold investors. My preferred closing method is contract assignment because it's quick, simple, and cost-effective. By assigning my rights in the purchase agreement to the end buyer, I avoid double title fees and two separate closings. This method works best when both buyer and seller are comfortable with transparency about the wholesaler's fee. The main advantage of contract assignment is efficiency—there's only one closing and minimal costs, which makes it ideal for smaller deals. However, for larger profits or when privacy is important, I use a double closing. This allows me to keep the assignment fee confidential and ensures both transactions are fully documented and independent. It also gives me more control, which can help maintain professionalism and trust with both parties. When looking for transactional funding for a double closing, I recommend using lenders who specialize in short-term or same-day closings. They understand the structure of wholesale deals and are familiar with the timing. Building relationships with a few trusted funders and working with an experienced title company helps avoid last-minute issues. Always provide complete paperwork for both sides of the transaction. To successfully double close, organization and communication are key. Make sure both contracts are signed, the title is clear, and the end buyer's funds are confirmed before starting the first closing. Schedule both closings on the same day, coordinate closely with your title company, and verify all wire transfers and fees in advance. When done right, double closings protect your profit, keep deals smooth, and strengthen your reputation in the market.
I mostly deal in wholesale real estate in Texas, where there are plenty of opportunities due to the combination of expanding metropolitan areas, advantageous laws, and consistent investor demand. Texas provides the size and variety required to carry out innovative transactions that strike a balance between cash flow and potential appreciation. My preferred approach to closing wholesale deals varies depending on the relationships and structure of the transaction. Contract assignment works best for simple, fast transactions with narrower spreads. It avoids additional closing costs and is quick and economical. Nonetheless, I favor double closing when control or secrecy are crucial, particularly in higher-value transactions. It allows for pricing privacy and maintains orderly, professional negotiations. Contract assignment's main advantage is its ease of use. It only requires one closing rather than two, doesn't require any money from you, and can frequently be finished in a few days. It's ideal for novice investors who want to gain experience without having to pay a lot of money up front. Discretion is the advantage of double closing. By buying the property and selling it right away, you avoid any potential conflict with buyers or sellers and maintain the privacy of your profit structure. Because the wholesaler is portrayed as a principal buyer rather than a middleman, it also lends credibility. When scaling operations or handling more complicated deals, this method is cleaner even though it costs more. Reliability is more important than cost when looking for transactional funding for a double close. Select lenders who understand wholesale deal timelines and have experience with same-day funding. Building ties with regional funding organizations or private lenders can expedite approvals because they are aware of the flexibility and speed needed in this market. Communication and preparation are key to a successful double close. To guarantee that funds transfer smoothly between transactions, both closings should take place on the same day, preferably with the same title company. Verify all funding information, wire instructions, and documents beforehand. Since timing determines the difference between a stress-free transaction and a smooth one, success in double closing largely depends on being organized and anticipating minor details.
I mainly operate in Texas, with Houston being our home base--we're doing 15-20 deals monthly there. We've recently expanded statewide and are moving into commercial (light industrial warehouses and self-storage), so our model has evolved beyond traditional wholesaling. Here's what most people miss about wholesale methods: we stopped doing pure wholesale years ago because we actually buy and hold the properties ourselves. When you have your own capital and close with cash in-house, you eliminate the financing risk completely. We built our radio presence and brand specifically so sellers trust us to close--no flaky end buyers, no assignment drama where deals fall through. For the rare times we do work with other investors, I'll be blunt: contract assignment is dead in competitive markets. Sellers Google their address and see comparable sales instantly. When they find out you're making $15K-30K flipping paper, they either walk or demand you split it. We've had to pivot our entire pitch around "we're the actual buyer" because transparency killed the assignment game in Houston around 2019. The best advice I can give is don't wholesale--raise capital and buy the deals yourself. We went from husband-and-wife hustle to 13 people because we stopped depending on other buyers. If you must use transactional funding, your title company matters 10x more than your lender--find a closer who's done 50+ doubles and can wire funds between back-to-back closings within 2 hours. Most transactional lenders are fine; it's the closing coordination that kills deals.
I primarily focus my real estate wholesaling business in Michigan, where I've developed a specific underwriting approach for evaluating deals effectively. When working in Michigan, I always make it a practice to disclose to sellers that I'm not the final buyer, which helps maintain transparency throughout the transaction process. I also emphasize the importance of following state regulations, particularly around marketing methods, as certain approaches like cold texting without prior opt-in are illegal in Michigan.
We mainly wholesale in Florida, and our preferred closing method depends on the deal. For most, we use contract assignments because they're simple and really just fast; you just assign the purchase contract to your end buyer and collect your fee. It's great for straightforward deals where everyone's comfortable with transparency. Contract assignments are great because they're simple and cost-effective. You don't need to fund the purchase; you're just assigning your rights in the contract to your end buyer and collecting your assignment fee at closing. It's perfect for fast-moving deals and newer wholesalers who don't want the hassle of extra paperwork or funding. Double closings, on the other hand, shine when you want to keep your profit margin private or when the seller or buyer might question your fee. They give you more control and confidentiality since each side signs a separate contract and never sees the other's numbers. But, when it comes to transactional funding, we always tell new investors to partner with lenders who specialize in same-day double closings. Look for short-term funders who've worked with wholesalers in your state, understand title company timelines, and can wire funds quickly; speed is everything. To successfully double close, timing and communication are extremely important. Have your end buyer ready to close within hours of your purchase closing. Make sure your title company understands double closings and can handle both transactions back-to-back. The best deals we've ever done happened because everyone was aligned before the day of closing. A piece of advice? Choose the method that fits your deal, protect your relationships, and make sure your process feels clean and transparent. That's what keeps you in the game long term.
Santa Cruz Properties is based mostly on the state of Texas with the Rio Grande Valley as its major target. Our specialization is in the management of property, investment, and wholesaling in major markets in Texas. This consists of residential, commercial, and multi-family real estate, and we want to offer value to our customers with wise purchases and smooth dealings. We are well versed with the local market and this gives us an edge over the intricacies of real estate wholesaling in the sense that the sellers and the buyers end up in efficient and profitable dealings.
I've been running Direct Express Realty in Florida since 2001, and we handle everything from acquisitions to construction in-house, so I've worked through plenty of wholesale scenarios over two decades. Here's what I've learned from the Tampa Bay market specifically. **1) Florida (Tampa Bay/St. Petersburg area)** - The market here moves fast, especially in Pinellas County where inventory stays tight. **2) I prefer assignment when the numbers work and the seller is investor-savvy**, but I'll structure a double close when we're dealing with bank-owned properties or finicky sellers who'd kill the deal if they saw my fee. **The real benefit of assignment nobody talks about**: speed and simplicity mean I can move on three deals in the time it takes to set up one double close. When you're managing multiple companies like I do--realty, property management, construction--time is your most valuable asset. I've closed assignment deals in under 10 days because there's no second transaction to fund or coordinate. **For double closing advice that actually matters**: find your transactional funding source *before* you need it, not during a deal. I keep relationships warm with two local hard money guys here in Tampa Bay who've funded my construction projects--they already know my business is solid and can wire same-day when needed. The mistake I see wholesalers make is scrambling on Google the week of closing, then getting quoted 3-4% because they're an unknown risk. Build the relationship during slow periods, show them your track record, and you'll get better terms when it counts.
I'm not actively wholesaling now, but I ran MLM Properties as a Managing Partner since 2013 and worked both sides of restoration deals where wholesalers brought us distressed properties. I've seen what actually closes and what falls apart at the title table. The assignment versus double close debate comes down to one thing: seller sophistication. On a fire-damaged property we restored in the Midwest, the wholesaler used assignment because the elderly seller didn't care who bought it--she just wanted out. But on a flood-damaged commercial building in a nicer area, the same wholesaler had to double close because the seller would've killed the deal seeing a $40K assignment fee on the HUD-1. For transactional funding, ignore the online lenders pushing 2% fees for 24-hour money. Find a local hard money guy who does actual rehab lending--they'll often fund your double close for $500-$1000 flat because they want the relationship for bigger deals later. I've referred several wholesalers to our network's preferred lender who charges $750 per transaction regardless of property price, and he's never had a deal fall through. The mechanical part people mess up: confirm your title company can close both transactions same-day before you go under contract. I watched a $28K wholesale fee evaporate because the title company needed "24 hours between closings" per their policy. Call three title companies, ask how many same-day double closes they did last month, and only work with whoever gives you an actual number above twenty.
A successful double close depends heavily on your title company or closing attorney. Many investors focus on dates and documents, but forget that the title agent needs to understand the why behind the transaction. Choose one who is familiar with investor closings and open to creative funding flows, such as transactional lending. Let them know upfront how the funds will move between A-to-B and B-to-C. This avoids compliance issues, delayed wires, and the kind of "we don't do that here" surprises that can sink your deal in an afternoon.
The trickiest part of a double close is the 24-hour window when you're juggling two deals at once. Keep your end buyer engaged with updates and confirmations while keeping your seller calm and confident that closing is on track. Sellers can get spooked easily, especially if they sense delays or extra parties involved. Meanwhile, buyers tend to push for details before funds are wired. Balance both sides with clear, calm communication, and never let either side feel like they're waiting on the other. It is a soft skill that separates pros from beginners.