Double Closing in Wholesaling (Simple Breakdown)
Had a question on today’s call about double closings, so here’s the quick version A double close is when you actually buy the property and then resell it immediately to your end buyer. Instead of assigning the contract, you’re doing two transactions: A to B: You buy from the seller B to C: You sell to your buyer Both usually happen the same day or within a short window. Why use a double close? - You don’t want the buyer seeing your assignment fee - There’s a big spread and you want to control the deal - The seller or buyer doesn’t allow assignments Example: You get a deal at $300KYour buyer is at $350K You close on the $300KThen resell at $350K You keep the difference (minus closing costs) Transactional Funding (this is key): I’ve got a lender who will fund the deal at 0.75% of the loan amount Quick example: $300K purchase0.75% = $2,250 cost So if you’re making $50K on the spread, paying $2,250 to control the deal and keep it clean is a no-brainer. Key things to know: - You’ll need funding (transactional funding or your own cash) - You’ll pay closing costs twice - You need a title company that knows how to handle it When I use it: Only when the spread is big enough to justify the extra costs and risk. If the deal is thin → assign it If the deal is strong → double close it If you want a connection to the transactional funding lender, I can intro you. 0 down and they finance it all I’ll get you set up… and yeah I’ll take my referral fee too