Once you have a property under contract and a cash buyer lined up, you have to decide how to actually collect your fee. There are two standard exits in wholesaling: the assignment and the double close. Most new wholesalers default to assignment because it is simpler and cheaper. Experienced operators know that sometimes a double close is worth the extra cost.
Knowing the difference, and knowing when to use each, protects your margin and keeps your deals clean. Here is how they compare.
How an Assignment Works
An assignment is the classic wholesale exit. You put the property under contract with the seller, then you sell your position in that contract to an end buyer for an assignment fee. You never take title to the property. At closing, the buyer steps into your shoes, purchases the house directly from the seller, and the title company pays you your fee.
It is fast, it is inexpensive, and there is only one closing. Because you never take ownership, there are no double sets of closing costs and no need to fund the purchase, even briefly. For the majority of standard wholesale deals, assignment is the right tool.
The one downside of assignment is transparency. Your assignment fee usually appears on the closing statement, so both the seller and the buyer can see exactly what you are making. On most deals that is fine. On deals with a large spread, it can create friction.
How a Double Close Works
A double close, sometimes called a simultaneous close, is exactly what it sounds like: two separate transactions. First, you buy the property from the seller and take title. Then, moments or days later, you sell it to your end buyer. You are a genuine owner in the middle, if only briefly.
Because there are two full transactions, the seller only sees what they sold for, and the buyer only sees what they paid. Your spread stays private. The tradeoff is cost and complexity. You pay two sets of closing costs, and you either need to fund the first purchase yourself or use short-term transactional funding to cover the gap.
When to Use Each
The decision usually comes down to the size of your spread and how sensitive the parties are to it.
Use an assignment when:
- Your fee is modest and neither party is likely to object to seeing it
- You want the fastest, cheapest path to closing
- The contract permits assignment and the end buyer is fine with it
- You are moving volume and want to keep every deal simple
Use a double close when:
- Your spread is large enough that showing it could blow up the deal
- The end buyer's lender will not allow an assignment
- You want to keep your numbers private from both sides
- You are working with an institutional buyer that requires clean title from you
Rule of thumb: if the assignment fee is small and uncontroversial, assign it. If the spread is large enough that daylight on it could cost you the deal, the extra closing costs of a double close are usually worth paying.
The Costs Compared
Assignment is the cheaper exit by a wide margin. You pay no closing costs of your own because you never take title. Your assignment fee is your profit, minus any minor administrative costs.
A double close carries two sets of closing costs, plus potential transactional funding fees if you are borrowing the purchase amount for the day. That funding is typically short term and priced accordingly, but it is a real expense. You need enough spread to absorb those costs and still walk away with the profit you underwrote.
Why Deal Quality Matters More Than the Exit
Here is the thing most new wholesalers miss. Whether you assign or double close, the profit was determined long before closing day. It was set when you underwrote the deal, made the offer, and locked in your spread. The exit strategy protects that spread; it does not create it.
That is why the front end of the deal is where your energy belongs. Accurate comps, a realistic ARV, and a solid repair estimate are what make a deal worth either exit. And to nail the repair estimate, you need real condition data on the property.
This is where a clean property documentation process pays off. When you send the seller a photo submission link and get organized, room-by-room images the same day, you can underwrite the deal accurately and set a spread that survives to closing. A well-documented deal is also easier to sell to a cash buyer, which means your chosen exit, assignment or double close, goes smoothly instead of stalling.
The Bottom Line
Assignment is the default: fast, cheap, and simple, ideal for the majority of deals. The double close is your tool for large spreads, privacy, and buyers whose financing will not allow an assignment. Learn both, keep the extra cost of a double close in mind, and choose based on the specific deal rather than habit. But remember that the real money is made on the front end, when you underwrite the deal right and document the property well.