Real estate wholesaling has become one of the fastest growing entry points into the investment property market. Many new investors search terms such as double closing real estate, assignment vs double closing, and wholesale closing strategies because they want to understand how wholesalers structure transactions and generate profits without owning the property long term.
Two of the most widely used closing strategies in wholesaling are Assignment of Contract and Double Closing. Both strategies allow wholesalers to profit by securing a property under contract and transferring the opportunity to an investor buyer. However, the structure of the transaction, legal documentation, and funding requirements can be very different.
Understanding the difference between these strategies is important for wholesalers, investors, and real estate professionals who participate in off market transactions. As a Mortgage Strategist, I frequently explain these strategies to investors who are transitioning from wholesaling into purchasing rental properties, fix and flip projects, or long term real estate investments.
What Is an Assignment of Contract in Real Estate
An Assignment of Contract is the most common wholesaling strategy used by beginner real estate investors. In this structure, the wholesaler signs a purchase agreement with a property owner and then assigns the rights of that contract to another buyer.
Instead of purchasing the property themselves, the wholesaler transfers the contract to an investor buyer who completes the transaction with the seller. The wholesaler receives a profit through what is known as an assignment fee.
The assignment process typically involves three parties:
• The Seller, who owns the property
• The Wholesaler, who secures the property under contract
• The Investor Buyer, who ultimately purchases the property
The assignment agreement legally transfers the rights of the purchase contract from the wholesaler to the investor buyer.
Example Assignment Deal
Contract price with seller
$100,000
Investor buyer purchase price
$115,000
Wholesale assignment fee
$15,000
In this scenario, the investor buyer purchases the property for $115,000. The seller receives the agreed purchase price of $100,000, while the wholesaler receives a $15,000 assignment fee for finding the deal.
According to real estate investor platforms such as BiggerPockets and PropStream market data, many wholesale assignment fees range between $5,000 and $20,000 per transaction, depending on the property value and investor demand.
What Is a Double Closing in Real Estate
A Double Closing is another wholesale closing strategy used when the wholesaler wants to keep the profit confidential or when the seller does not allow assignment of contract.
In a double closing transaction, the wholesaler actually purchases the property and then immediately resells it to the investor buyer. The two transactions occur back to back, usually on the same day.
This strategy involves two separate closings:
Transaction A to B
Seller sells the property to the wholesaler.
Transaction B to C
Wholesaler sells the property to the investor buyer.
Because the wholesaler temporarily takes ownership of the property, the investor buyer never sees the original purchase price negotiated with the seller.
Example Double Closing Deal
Seller to Wholesaler Purchase Price
$100,000
Wholesaler to Investor Buyer Sale Price
$120,000
Wholesaler Profit
$20,000
In this structure, the wholesaler purchases the property from the seller and then immediately sells it to the investor buyer at a higher price.
Why Some Investors Prefer Double Closings
Double closings are often used when wholesalers want to protect their profit margins or when the seller refuses to allow assignment language in the contract.
Some sellers or real estate agents do not feel comfortable with contract assignments because they believe the wholesaler is acting as a middleman. In these situations, a double closing allows the transaction to proceed without revealing the wholesaler's profit.
Common reasons investors use double closing strategies include:
• Protecting the wholesale profit from being disclosed
• Seller refuses assignment language in the purchase contract
• Investor buyer prefers a direct purchase from the wholesaler
• Higher profit margins that may raise questions during assignment
According to real estate investor surveys, wholesalers often switch to double closings when assignment profits exceed $20,000 to $30,000 because the large spread may create negotiation challenges with the seller or buyer.
Key Differences Between Assignment and Double Closing
Although both strategies are used in wholesaling, the transaction structure is very different.
Assignment of Contract
• Wholesaler never takes ownership of the property
• Investor buyer completes the purchase directly with the seller
• Wholesaler receives an assignment fee
• Requires assignment language such as and or assignees in the purchase contract
• Typically involves only one closing transaction
Double Closing
• Wholesaler temporarily purchases the property
• Property is sold again to the investor buyer
• Two separate closings occur
• Profit is earned through resale price difference
• May require transactional funding to complete the purchase
Both strategies are widely used in the wholesaling industry depending on the circumstances of the deal.
What Is Transactional Funding in Double Closings
One challenge wholesalers may face with double closings is the need for funds to complete the first purchase transaction.
Many wholesalers use transactional funding, which is short term financing used specifically for back to back closings. Transactional lenders provide funds for a very short period, sometimes only a few hours, to allow the wholesaler to purchase the property and resell it immediately.
Transactional funding is commonly used in deals where:
• The wholesaler does not have enough capital to close
• The profit margin is large and the wholesaler wants privacy
• The seller refuses assignment language in the contract
Fees for transactional funding typically range from 1 percent to 3 percent of the purchase price, depending on the lender and deal structure.
Which Strategy Is Better for Beginner Investors
For most beginner investors, assignment of contract is the simplest and most common way to wholesale real estate deals.
Assignment transactions usually require less capital and fewer closing steps. They also involve fewer legal complexities compared to double closings.
However, experienced wholesalers often use both strategies depending on the specific deal structure.
Assignment contracts may work best when:
• Sellers allow assignment language
• Assignment fees are moderate
• The buyer is comfortable with the assignment structure
Double closings may be more appropriate when:
• The seller prohibits assignment
• The profit margin is very large
• The wholesaler wants confidentiality regarding profit
Understanding both strategies allows investors to structure transactions more effectively.
Why Wholesalers Often Transition Into Real Estate Investors
Many wholesalers eventually transition from assigning contracts into purchasing real estate investments themselves.
Wholesaling provides valuable experience in:
• Property valuation and deal analysis
• Negotiating with sellers
• Understanding local real estate markets
• Building relationships with investors and contractors
According to the National Association of Realtors, nearly 20 percent of residential property purchases in recent years have been investment related, demonstrating the strong demand for rental and investment properties across the United States.
Many wholesalers eventually use the profits from assignments to acquire rental properties, build real estate portfolios, or complete fix and flip projects.
Final Thoughts on Wholesale Closing Strategies
Both assignment of contract and double closing are powerful strategies used by real estate wholesalers to structure profitable deals. Each method has its advantages depending on the transaction structure, seller requirements, and investor buyer preferences.
Learning how to analyze deals, negotiate contracts, and choose the appropriate closing strategy is essential for anyone interested in building a successful real estate investment business.
Whether you plan to wholesale properties, flip houses, or build a rental portfolio, understanding how these transactions work will help you navigate the real estate market with greater confidence.
Work With a Mortgage Strategist Who Understands Real Estate Investors
Many wholesalers eventually move beyond assigning contracts and begin purchasing investment properties themselves. When that time comes, having access to the right financing strategies can make a major difference.
Ebonie Beaco
Mortgage Strategist
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