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Double Closing Real Estate: Why Double Closings Still Matter
In wholesaling circles, double closings are often seen as a way to hide your profit. But for larger multifamily and commercial deals, double closings can be the difference between walking away broke or closing six-figure spreads.
As Grant Cardone says in his multifamily trainings:
“Control the deal and control the paper. That’s how you make money.”
Double closings give you control of the paper and keep your profit secure.
What Is a Double Closing?
A double closing is two back-to-back transactions:
- First Closing (A to B): You buy the property from the seller.
- Second Closing (B to C): You sell the property to your end buyer the same day for a higher price.
Instead of assigning your contract and showing your assignment fee, you take temporary ownership before reselling.
Real-Life Story: Orlando Multifamily
A client in Orlando, FL contracted a 24-unit building at $3.1M.
- Assignment fee would’ve been over $150k.
- Seller’s attorney refused assignments.
- End buyer wanted clean title, no wholesaler in between.
Solution: We funded the first closing with transactional funding, then immediately closed with the end buyer.
Profit: $165,000 net after fees.
Without the double closing, that deal would’ve died at the contract stage.
Double Closing Real Estate: Why Investors Use Double Closings
- Protect Profits – Buyers and sellers don’t see your margin.
- Bypass Assignment Restrictions – Some contracts and markets ban assignments.
- Close Larger Deals – Six-figure spreads often justify the extra cost.
- Maintain Professionalism – Keeps transactions clean and separate.
Double Closing Real Estate: Challenges & Our Solutions
- Two Sets of Closing Costs: Title fees, transfer taxes, and recording fees double.
Our solution: We roll these costs into the funding so they don’t choke your deal. - Tight Timing: Both closings must align perfectly.
Our solution: We work with title companies experienced in double closings. - Funding First Closing: Not every lender understands transactional funding.
Our solution: We provide same-day funding nationwide.
Double Closing Real Estate: Authority Backing
- Grant Cardone: Advocates controlling contracts and ownership in multifamily. (Cardone Capital)
- BiggerPockets Threads: Hundreds of discussions on why investors prefer double closings over assignments (Double Closing Forum).
- SEC Guidelines: Stress the importance of legal compliance in syndications (SEC.gov).
FAQs About Double Closing Real Estate
Q: Why not just assign the contract?
Assignments expose your profit and can spook sellers/buyers. Double closings keep it clean.
Q: How much funding is needed?
Full purchase price for the first closing. Often covered with transactional or gap loans.
Q: Can you use double closings on commercial deals?
Yes — especially common for multifamily and mixed-use deals.
Q: Can your company fund my double closing?
Yes. We provide transactional and gap funding nationwide, including multifamily and commercial deals.
