Closing a Deal

Closing is the finish line. Everything you have done -- finding the deal, analyzing the numbers, marketing to buyers, negotiating offers -- culminates in a closing at the title company where ownership transfers and you collect your assignment fee. This guide walks through what happens between accepting an offer and marking a deal as Closed in Deal Run, including the contracts involved, the money flow, and what to watch for.

Assignment contract basics

In a wholesale transaction, you are not buying and selling the property yourself. You are assigning your contractual right to purchase the property to an end buyer, for a fee. This involves two separate contracts:

Buy assignment (you and the deal source)

The buy assignment is the contract between you (the assignee) and the deal source or seller (the assignor). It gives you the right to purchase the property at an agreed price. Key terms include the purchase price, earnest money amount, option period (if applicable), and closing date. In Texas, the underlying contract is typically a TREC 1-4 Residential Purchase Contract, with the assignment addendum attached.

The buy assignment usually includes a termination period -- a window during which you can back out if you cannot find a buyer or if your due diligence reveals issues. This protects you from being locked into a deal you cannot move.

Sell assignment (you and the end buyer)

The sell assignment is the contract between you and the end buyer. It transfers your purchase right to the buyer for a higher price. The difference between what you owe the seller and what the buyer pays is your assignment fee. Key differences from the buy side:

• Earnest money is typically non-refundable. This protects you from buyers who tie up your deal and then walk away. Non-refundable earnest money ensures the buyer has skin in the game.
• There is usually no termination or option period. Once the buyer signs, they are committed. If they back out, they forfeit their earnest money.
• The assignment fee is explicitly stated in the contract so all parties know exactly what you are making on the transaction.

For a deeper look at contract terms and structures, see Assignment Contracts.

Title company coordination

The title company (or closing attorney, depending on your state) is the neutral third party that handles the closing. They perform the title search, hold earnest money in escrow, prepare closing documents, and distribute funds at closing. Your responsibilities during this phase include:

• Selecting a title company. Choose one experienced with assignment transactions. Not all title companies are comfortable with wholesale deals -- some charge additional fees or refuse assignment closings entirely. Build a list of investor-friendly title companies in your market. Ask other wholesalers who they use.
• Sending contracts. Provide the title company with both the buy-side and sell-side contracts so they can prepare the HUD-1 settlement statement (or Closing Disclosure) correctly.
• Confirming clear title. The title company will run a title search to verify there are no liens, encumbrances, or ownership disputes. If issues arise -- a tax lien, a mechanic's lien, a missing heir -- the title company will work to resolve them, but this can delay closing.
• Scheduling the closing date. Coordinate between the seller, buyer, and title company to set a date that works for everyone. If your buy-side contract has a closing deadline, make sure the sell-side closes on or before that date.
• Wiring instructions. Confirm where the buyer should wire their funds and verify wiring instructions directly with the title company by phone to prevent wire fraud.

Earnest money handling

Earnest money serves as a good-faith deposit showing that the buyer is serious about the purchase. In a wholesale transaction, there are typically two separate earnest money deposits:

• Your earnest money to the seller -- deposited when you sign the buy-side contract. This is typically $500 to $5,000 depending on the deal size and market norms. In Texas, this is held by the title company.
• The buyer's earnest money to you -- deposited when the buyer signs the sell-side assignment. This is also held by the title company. As noted above, this is usually non-refundable to protect you.

Both deposits are credited toward the purchase price at closing. Your earnest money reduces what you owe the seller, and the buyer's earnest money reduces what they owe at closing. These are not additional costs on top of the purchase price -- they are advance portions of it.

Double close vs. assignment: when to use each

There are two ways to structure the closing, and the right choice depends on the deal:

Assignment (single close)

In an assignment, you never actually take ownership of the property. You assign your purchase contract directly to the end buyer. The seller transfers title directly to the buyer at closing, and your assignment fee is paid from the closing proceeds. This is the simplest and most common structure for wholesale deals.

Pros: Simpler paperwork, one closing, lower closing costs (only one set of title fees), faster.

Cons: Your assignment fee is visible to all parties on the closing statement. Some sellers object when they see a large assignment fee. Some title companies add fees for assignment transactions.

Best for: Most standard wholesale deals, especially when your assignment fee is reasonable relative to the deal size and you are comfortable with fee transparency.

Double close

In a double close, two separate closings happen (often on the same day, sometimes minutes apart). In the first closing (the "A-to-B"), you buy the property from the seller. In the second closing (the "B-to-C"), you sell the property to the end buyer. You briefly own the property between the two transactions.

Pros: Your profit is not visible on the seller's closing statement. The seller only sees what they are receiving. The buyer only sees what they are paying. This is useful when your assignment fee is large and might cause friction.

Cons: Two sets of closing costs (you pay title fees, transfer taxes, etc. on both transactions), more paperwork, requires a title company willing to do same-day double closings, and you may need transactional funding (short-term financing to cover the first closing until the second closing funds arrive).

Best for: Deals where the assignment fee is large (over $15,000 to $20,000), deals where the seller might object to the fee, or deals where you want to keep your profit private.

What happens in Deal Run when you close

After the closing is complete at the title company and funds have been distributed, return to Deal Run and move the deal to the Closed stage. Here is what happens:

1. Record your assignment fee. Enter the final assignment fee amount when prompted. This is the net amount you received after any closing costs or adjustments.
2. The deal card moves to Closed. It appears in the Closed column on your deal tracking board with a green status badge.
3. Marketing page is unpublished. The public marketing page for this deal is automatically taken down since the property is no longer available. Existing links will show a "This deal has been closed" message instead of the listing.
4. Activity timeline is updated. A closing entry is logged with the date, fee amount, and buyer information.
5. Buyer list is updated. If the closing buyer is in your buyer list, their deals_closed count increments. Over time, this helps you identify your most reliable repeat buyers.
6. Dashboard metrics update. Your total closed deals count, total assignment fees collected, and average fee per deal all update on your dashboard.

Tracking your assignment fee

Deal Run tracks your assignment fee for each closed deal and aggregates these into lifetime and period-based statistics on your dashboard. You can see:

• Total assignment fees collected -- your all-time gross revenue from closed deals
• Average assignment fee -- helps you understand your typical deal size and set pricing expectations for future deals
• Monthly/quarterly revenue -- track your income trends over time to see if your business is growing
• Fee per deal -- visible on each closed deal's detail page for quick reference

These numbers matter for more than just ego. When you apply for business credit, bring on a partner, or evaluate whether your marketing spend is generating adequate return, having clean revenue data organized by deal is invaluable.

What if a deal falls apart before closing?

Not every deal that reaches Under Contract actually closes. Buyers back out, title issues surface, sellers change their minds, or financing falls through. When this happens:

• Move the deal backward. Drag the deal card back to the appropriate stage. If the buyer backed out but you still have other interested parties, move it back to Offers or Active Marketing.
• Document what happened. Add a note to the activity timeline explaining why the deal fell through. This is valuable data for future deals -- patterns in why deals fail point you toward improvements in your process.
• Handle earnest money. If the buyer's earnest money was non-refundable (standard on sell-side assignments), you retain it as partial compensation for the lost deal. The title company handles the disbursement.
• Re-market if needed. Refresh your marketing package, send a new blast to your buyer list, and start the process again. Many deals close on the second or third attempt with a different buyer.

Closing checklist

Use this as a quick reference when approaching closing on any deal:

1. Buy-side contract is signed and earnest money deposited
2. Sell-side assignment is signed by the end buyer with earnest money deposited
3. Title company selected and both contracts submitted
4. Title search completed with no unresolved issues
5. Closing date confirmed with all parties
6. Wire instructions verified by phone with the title company
7. Buyer has funds ready (cash on hand or hard money loan approved)
8. Closing documents reviewed and signed
9. Funds distributed and assignment fee received
10. Deal marked as Closed in Deal Run with fee amount recorded