Wholesaler Double Close vs Assignment of Contract Profit Calculator

Compare two wholesale real estate exit strategies: assigning the contract to your buyer (cleanest, no funding) vs double close (separate AB and BC closings, masks profit). See net wholesale fee after transactional funding, transfer tax, and closing costs.

Contract price with seller (AB) (USD)

Sale price to end buyer (BC) (USD)

Assignment fee path: title fees (USD)

Double close: transactional funding fee (% of AB)

Double close: extra title/closing cost per side (USD)

State transfer tax rate (% — both sides if DC)

Net profit advantage — Assignment vs Double Close

Assignment is typically more profitable, but exposes the spread

Assignment net profit

—

Spread − title fee

Double close net profit

—

Spread − funding − title × 2 − transfer tax × 2

Gross spread (AB → BC)

—

Sale − contract

Double close fee burden

—

Funding + extra title + transfer

Line item	Assignment	Double close

Note: Assignment is cleanest — you sign the contract with the seller, then assign your buyer position to an end buyer for a fee, with no money out of pocket. Double close is used when your end buyer is a hard-money lender that won't lend on assigned contracts, or when the spread is so large you don't want it visible on the HUD-1. Many states require wholesalers to be licensed or disclose intent.

Wholesaling exit strategies — assignment vs double close

Wholesale real estate has two primary exit strategies. In an assignment of contract, the wholesaler signs a purchase agreement with the seller, then assigns the buyer position to a cash investor for a fee. The end buyer closes directly with the seller — the wholesaler never takes title. Costs are minimal: small title fee for the assignment recording, no transfer tax, no transactional funding. The wholesaler's fee is disclosed on the HUD-1 settlement statement at closing.

In a double close (also called a back-to-back closing), the wholesaler buys the property from the seller (AB transaction), then immediately resells it to the end buyer (BC transaction), often using transactional funding (24-hour loan) to bridge the AB purchase. Two separate closings occur — the spread between AB and BC is the wholesaler's profit, but it's hidden because the end buyer never sees the AB price. Costs are higher: transactional funding fee (1–3% of AB), extra title fees, and transfer tax on both transactions.

When to use each strategy

Use assignment when (1) the spread is reasonable (under 20–25% of contract price), (2) the end buyer is comfortable seeing the wholesaler fee on the HUD, (3) the original contract permits assignment (most do unless explicitly prohibited), and (4) the property is in a state where wholesaling without a license is legal.

Use a double close when (1) the spread is large and you want privacy, (2) the end buyer is a hard money lender, REIT, or institutional investor whose loan documents prohibit funding assigned contracts, (3) the original contract prohibits assignment, or (4) you're worried the end buyer will renegotiate if they see the AB price. The extra cost typically runs $2,000–$5,000 for a $150K–$200K deal.

State licensing and legal risks

An increasing number of states regulate or require licensing for wholesalers. Illinois, Oklahoma, Philadelphia, Massachusetts, and others require a real estate license or limit the number of deals per year. Texas requires disclosure of equitable interest. Other states require the wholesaler to disclose intent to assign in the original contract. Doing too many deals without disclosure can trigger unlicensed brokerage charges.

Always consult a local real estate attorney before wholesaling. The NAR and most state Realtor associations have lobbied for stricter wholesaler regulation. Bigger Pockets and other communities maintain state-by-state wholesaler legal guides updated annually.

Sources: NAR.realtor wholesaler regulation, BiggerPockets wholesale guides, state attorney general consumer protection portals, IRS Publication 463 (Travel, Gift, and Car Expenses) for wholesaler business deductions. Last updated: May 2026.