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The Untold Truth about double closings

Everyone thinks wholesaling is just about finding a deal and assigning it. But in real life, big paydays can vanish the second a seller or buyer sees your fee on paper. I’ve watched deals crumble in the closing room because someone got curious about “how much you’re making.”

That’s why experienced wholesalers — myself included — keep a double closing in the toolkit. It’s not just about secrecy. Done right, it can mean the difference between a $5,000 assignment fee and a $25,000 hidden spread.

What Is a Double Closing?

A double closing is when you complete two real estate transactions back-to-back — often on the same day.

1. First Closing (A-to-B): You buy the property from the seller.
   
2. Second Closing (B-to-C): You sell that property to your end buyer at a higher price.

Instead of assigning the contract, you take temporary ownership before passing it along.
In Texas, this is 100% legal — but you need a title company that understands wholesaling.

Why Use Double Closings Instead of Assigning?

Here’s why pros use it, even when assigning might be “easier”:

1. Protect Your Profit

With an assignment, your fee is right on the HUD-1 for everyone to see. In a double closing, no one outside your side of the deal sees your spread.

Case in Point: I once had a Fort Worth deal where the seller almost backed out after spotting my $22,000 assignment fee. A double closing kept the number private — and the deal alive.

2. Avoid Pushback

Large profits can trigger seller remorse or buyer hesitation. A double closing eliminates that awkward “Why are you making so much?” conversation.

3. Keep Big Margins Clean

For spreads over $20k, this method feels more professional to both sides and reduces suspicion.

How It Works — Step by Step

Step 1: Find a Distressed Property

Think probate homes, tired landlords, or fixer-uppers. In Texas, inherited properties are often quick to sell because heirs want cash, not upkeep headaches.

Step 2: Lock It Up Under Contract

Negotiate a price that leaves room for your buyer’s profit. Example: Contract for $85,000 knowing you can sell for $110,000.

Step 3: Line Up Your Buyer

Usually an investor who flips or rents. Have them committed before the first closing.

Step 4: First Closing (A-to-B)

You buy from the seller. Use transactional funding or your end buyer’s funds.

Step 5: Second Closing (B-to-C)

You sell to your buyer at the higher price. Your profit is the difference, minus closing costs. In the $85k-to-$110k example, that’s around $22k net.

Challenges You Need to Plan For

Two Sets of Closing Costs

Title fees, recording costs, and possibly transfer taxes — twice. Always calculate before committing.

Tight Timing

Both closings typically happen the same day. If one stalls, you risk holding the property longer than planned.

Funding the First Closing

Not all lenders know what transactional funding is. In Texas, partner with one who does, or you’ll waste time explaining.

Financing Options for Double Closings

• Transactional Funding: Same-day loan paid back after the second closing.
  
• Private Lenders: Individuals funding deals for a flat return.
  
• Hard Money Loans: Short-term, asset-based loans — more flexible but pricier.
  

Pro Tip: Build a relationship with a title company that has handled wholesaler double closings before. This one step can prevent 90% of headaches.

Final Word

Double closings aren’t a loophole — they’re a professional strategy. They protect your profit, keep deals smooth, and, when done right, can seriously boost your income. Learn your state’s rules, find the right title partner, and this tool can become one of your biggest competitive advantages in wholesaling.