Double Close

A double close (also called simultaneous close, back-to-back close, or same-day close) is a real estate transaction structure where the wholesaler actually purchases the property from the original seller (A-B transaction), then immediately resells it to the end buyer (B-C transaction), with both closings occurring on the same day, often within hours of each other. Unlike assignment, the wholesaler briefly takes title to the property, which hides the wholesaler's profit from both the original seller and end buyer. Double closes are used when the original contract prohibits assignment, when the assignment fee is significantly large (and might upset the seller or end buyer if disclosed), or when the seller or title company is uncomfortable with assignments. This strategy requires a title company or closing attorney willing to facilitate both transactions and may require transactional funding (short-term loans specifically for double closes) if the end buyer's funds cannot be used to fund the A-B transaction. Double close costs include two sets of closing costs and any transactional funding fees.