Assignment vs Double Close: Pros and Cons
Every wholesale deal uses one of two closing methods: assignment of contract or double close. Both get you paid, but they differ in cost, speed, privacy, and legal complexity. Here is when to use each.
Side-by-side comparison
| Factor | Assignment | Double Close |
|---|---|---|
| Your closing cost | $200-$500 | $2,000-$5,000 |
| Fee visibility | Visible to seller and buyer | Private (separate transactions) |
| Speed | Faster (one transaction) | Same day or +1-2 days |
| Capital needed | None (beyond earnest money) | Transactional funding (1-3% fee) |
| Legal complexity | Simple | Two separate closings |
| Contract restrictions | Must allow assignment | Works with non-assignable contracts |
When to assign
- Your assignment fee is under $10,000 (no one objects to a reasonable fee)
- The contract allows assignment
- You want the lowest closing costs and fastest timeline
- Seller and buyer are both aware of and comfortable with the fee
When to double close
- Your fee exceeds $15,000-$20,000 (perception issue at high fees)
- The contract prohibits assignment (MLS purchases, REO properties)
- You want to keep your profit private
- The additional $2,000-$5,000 in costs is small relative to your spread
The cost of privacy
Double closing costs $2,000 to $5,000 more than assignment due to two sets of closing costs, two title insurance premiums, and transactional funding fees. On a $30,000 spread, that $3,000 extra cost is worthwhile for privacy. On a $7,000 spread, it eats nearly half your profit.
Bottom line
Default to assignment for simplicity and cost savings. Use double close when your fee is large, the contract prohibits assignment, or you need privacy. Many wholesalers use assignment for 80% of deals and double close for the 20% with larger spreads.