Assignment Basics
In an assignment, you transfer your contract rights to a buyer. The buyer closes directly with the seller. Your assignment fee is disclosed in the closing statement.
Simple, fast, lower closing costs. But your fee is visible. The transparency can create friction if sellers feel you're making "too much" or if buyers question why they're paying over contract price. However, many sellers and buyers understand the value you provide and accept reasonable assignment fees without issue. The simplicity of a single closing saves everyone time and money.
Double Close Basics
In a double close, you close two transactions: buying from the seller (A-B), then selling to your buyer (B-C). Each transaction has separate funds. Your spread is not directly disclosed to either party.
More complex, higher closing costs. But your spread is private. You need title company support for same-day closings - not all companies handle these smoothly. Transactional funding may be required if your buyer's funds can't be used for your purchase, adding costs. The two-transaction structure means two sets of closing costs, reducing your net profit on the same spread.
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Book a Real Estate Fit CallWhen to Assign
Assignment works well for smaller fees, sellers who understand the transaction, and buyers comfortable with disclosed fees. Most deals can be assigned.
Assignment is the default for efficiency. Fees under $10,000 rarely create problems - the parties generally accept that you're being compensated for your work finding and negotiating the deal. Experienced investors on both sides understand wholesaling and don't object to reasonable fees. Reserve double closing for situations where transparency would genuinely threaten the transaction.
When to Double Close
Double close when the spread is large enough to create seller or buyer sensitivity, when state regulations require it, or when either party prefers privacy.
The extra cost is worth it when it protects the deal. A $30,000 assignment fee might make a seller regret their price or a buyer question their value. Double closing keeps both sides focused on their transaction without worrying about your profit. Some sellers specifically request not knowing your spread, preferring to evaluate their price on its own merits. Respect those preferences.
State Considerations
Some states have regulations affecting assignment or double closing. Know your state's rules. Consult local counsel if uncertain.
Compliance protects your business long-term. Some states require disclosure of your role even in double closings. Others have seasoning requirements that complicate same-day transactions. A few states have attempted to regulate wholesaling more strictly. Stay current with your state's rules and build relationships with attorneys who understand real estate investor transactions. The landscape evolves, and what worked last year may not work next year.
Sources
The external data in this article draws on the sources below. Figures described in the text as estimates or industry triangulations are directional and are not attributed to a single dataset.