How a double close actually works.
Two closings on one property, usually the same day. Here's the sequence in plain English — what it costs, what has to be true for it to work, and where funding fits.
The short version
There are two separate transactions. In the first, you buy the property from the seller — investors call this the A–B leg. In the second, you sell it to your end buyer — the B–C leg. You are B. You actually own the property in between, sometimes for a few minutes, sometimes a day or two.
Why investors do it
Usually for practical, deal-level reasons — not the law: to keep the spread private (two settlement statements, so your buy price and resale price aren't on one document), because the end buyer's lender needs them to hold title, or because it's cleaner than a contested assignment. In some states, wholesaling rules come into play too — taking title is often a different transaction than the assignment those rules target, though a couple of states now reach the double close itself, so it's a question for a state attorney. Either way, it's one reason among several. More on transactional funding →
How it differs from an assignment
- Assignment: you transfer your rights under the purchase contract to the end buyer for a fee. You never own the property, and there is one closing. Your fee generally appears on the settlement statement both sides can see.
- Double close: two closings, two settlement statements, two deeds. You need real funds at the A–B table — and what you paid the seller and what your buyer paid you are not sitting on the same document.
The sequence
- 1. You put the property under contract with the seller.
- 2. You put your end buyer under contract with you, normally at a higher price.
- 3. Both closings get scheduled with the same title company or closing attorney, usually the same day.
- 4. At the A–B closing, funds reach the closing agent — yours, or transactional funding — and title transfers to you.
- 5. At the B–C closing, your buyer's funds come in, title transfers to them, the funding is repaid out of those proceeds, and the remainder is your profit.
What it actually costs
You pay closing costs twice — a second set commonly runs around 3% of the price. Title and escrow fees are charged on both transactions, and some states collect transfer tax on each one. On top of that there's the funding fee.
Compare that against the assignment fee you would have earned instead. On a thin spread, the assignment is often simply the better deal, and any funder who won't tell you that isn't worth using.
What has to be true for it to work
- A real end buyer with verified funds. Funding covers timing. It does not cover the risk that your buyer doesn't show up.
- A closing agent who will do it. Not every title company or closing attorney handles back-to-back closings. Ask at the beginning, not the day before.
- Financing that permits a quick resale. Some loan programs restrict them — FHA generally will not insure a loan where the property is being resold within 90 days of the seller's acquisition. Confirm with your buyer's lender before you schedule anything.
- Coordinated timing. If the B–C leg slips, you own a house you planned to own for an hour. Have an answer for that before you sign, not after.
The legal question, honestly. A number of states now regulate wholesaling, and most of those laws attach to assigning or marketing an interest in a property you have not taken title to — which is why double closings come up so often in those conversations. Whether taking title changes your obligations in a specific deal depends on the facts, including how the property was marketed. And it isn't universal: a couple of states now bring certain double closings under their wholesaling rules — Oklahoma (effective November 1, 2025) treats a double-close flip as a licensed activity, and Louisiana (effective August 1, 2026) treats certain double closes as wholesaling with disclosure requirements. That doesn't make a double close illegal — it adds obligations for the person doing it. This is a question for an attorney licensed in that state. We fund transactions; we don't advise on them.
Where transactional funding fits
Transactional funding covers the A–B purchase for the short window between the two closings. It's repaid from the B–C proceeds rather than out of your pocket, so your own capital stays free for the deals already in motion. Send us the property, both prices, the closing date, and who's closing it — and if the deal shouldn't be funded, we'll tell you that instead.
Need the funds to close?
Tell us the deal — type of funding, amount, and closing date. We answer quickly, and we tell you straight if it isn't a fit.
Request Funding →