Double closing

A double closing is two back-to-back sales of the same property. In the first, the investor buys from the owner (the A-to-B closing). In the second, usually the same day, the investor sells to the end buyer (the B-to-C closing). Each closing has its own settlement statement, so the seller and the end buyer do not see each other's price.

Wholesalers use a double close when a contract cannot be assigned, when the spread is large, or when the end buyer's lender will not accept an assignment. The investor briefly takes title, which means paying two sets of closing costs and, in many cases, using short-term transactional funding for the first purchase. Some title companies will not fund the first closing with the end buyer's money, and some lenders have seasoning rules for recently transferred titles. Confirm the approach with your title company before you sign either contract.