Double Close vs. Assignment: Which Strategy Protects Your Profits?

Most wholesale deals don’t fall apart because the numbers are bad. They fall apart because the structure wasn’t right.

If you’ve ever had a buyer push back on your fee, a seller get uncomfortable at closing, or a title company suddenly raise concerns, chances are the issue wasn’t the deal—it was the exit strategy. Understanding double close vs assignment is one of the fastest ways to protect your profits and avoid last-minute chaos.

What an Assignment Really Is

An assignment is the simplest and most common wholesale exit strategy. You put a property under contract with a seller, then assign that contract to an end buyer for a fee. The buyer closes directly with the seller, and your assignment fee is paid at closing.

For many beginners, assignments are attractive because they’re fast and require little capital. There’s usually one closing, fewer documents, and fewer moving parts. When everything goes smoothly, assignments work just fine.

The downside is visibility. Your assignment fee is often disclosed to the buyer, and sometimes the seller. If the spread is large or emotions run high, that transparency can create friction.

When Assignments Start to Break Down

Assignments tend to break down in three common scenarios.

First, when the fee is large. A $5,000 assignment rarely raises eyebrows. A $35,000 assignment often does. Even experienced investors can react emotionally when they see a big number attached to someone else’s work.

Second, when the buyer or seller is less investor-savvy. Retail-adjacent buyers, newer investors, or motivated sellers sometimes struggle with the concept of assignments, even when everything is legal and disclosed properly.

Third, when the title company isn’t assignment-friendly. Some title companies allow assignments but require additional disclosures. Others simply don’t handle them well, which can slow the process or introduce risk late in the deal.

What a Double Close Actually Does

A double close changes the structure entirely.

Instead of assigning the contract, you complete two separate transactions. In the first closing, you purchase the property from the seller. In the second closing—often the same day—you sell the property to your end buyer.

Your profit is the difference between the two prices, minus closing costs and any transactional funding fees. The key advantage is privacy: the end buyer does not see your spread.

Double closes are commonly used when profit protection matters more than simplicity.

The Real Trade-Off With Double Closings

Double closes aren’t “better” in every scenario. They come with additional costs and coordination.

You’ll usually need transactional funding to temporarily fund the first purchase. There are also two sets of closing costs, and timing must be carefully coordinated with the title company.

But what you gain is control. Control over how your profit is perceived, control over negotiations, and often control over whether the deal survives to closing.

For many wholesalers, especially as spreads increase, that trade-off is worth it.

Double Close vs. Assignment: The Key Differences

The real difference between a double close and an assignment isn’t legality—it’s risk exposure.

Assignments expose your fee. Double closes do not. Assignments are simpler and cheaper. Double closes cost more but protect your spread.



As a wholesaler, your job isn’t to default to one strategy. It’s to choose the right one for the deal in front of you.

When an Assignment Makes Sense

Assignments are often the right move when the spread is modest, the buyer understands wholesaling, and the title company is comfortable with assignments. They’re also ideal when speed matters and the deal doesn’t require additional complexity.



For new wholesalers learning the ropes, assignments can be a great starting point—as long as you understand their limitations.

When a Double Close Is the Smarter Play

Double closes shine when the spread is significant, the buyer is sensitive to pricing, or the title company has strict assignment policies.



They’re also useful when you want to maintain professionalism and reduce emotional negotiations. Many experienced wholesalers move toward double closes as they scale—not because assignments stop working, but because the stakes get higher.

How Fuel My Deal Helps Wholesalers Navigate Both

At Fuel My Deal, we work with wholesalers at every stage. If an assignment works, we’ll tell you. If a double close protects your profit, we help you structure it properly—with transactional funding and title coordination when needed.

The goal isn’t to complicate your deal. It’s to get it across the finish line cleanly.

FAQs

What is the main difference between a double close and an assignment?
An assignment transfers your contract to the buyer, while a double close involves two separate closings and keeps your profit private.

Is a double close legal?
Yes. Double closes are legal when handled correctly through a compliant title company.

Do I need transactional funding for every double close?
In most cases, yes. Transactional funding temporarily covers the first purchase.

Are double closes more expensive?
They typically involve higher costs due to two closings and funding fees.

Can beginners use double closes?
Absolutely—especially when guided by an experienced funding partner.

Which strategy is safer?
Neither is inherently unsafe. The safer option depends on the deal, the spread, and the parties involved.

Can I switch strategies mid-deal?
Often yes, but it’s best to decide early to avoid delays.

Choose Strategy, Not Stress

The real mistake most wholesalers make isn’t choosing the “wrong” strategy—it’s using the same strategy for every deal.

Assignments and double closes are both valid tools. The difference is knowing when each one protects you. Smaller spreads, experienced buyers, and assignment-friendly title companies often make assignments the cleanest path. Bigger spreads, sensitive negotiations, or strict title requirements usually call for a double close.

As you grow, your goal shouldn’t be to close faster at any cost—it should be to close cleaner, with fewer surprises and more control. That’s how you protect your reputation, your relationships, and your profits over the long term.

If you’re ever unsure which structure makes the most sense, that’s normal. The smartest wholesalers don’t guess—they get support, pressure-test the deal, and choose the path that keeps them in control from contract to closing.



From there, the next step is simple: get clear on the strategy before you’re at the closing table.