Wholesaling 101:

Double closings vs Assignments

- Double Closings: You use the end buyers funds to purchase the home form the seller, and collect the fee that is left over as profit.

- Assignment: You sell the OPPORTUNITY to buy a property for a fee. You assign it.

Now when do you use each? (IMPORTANT)

During a double closing you are basically closing twice. Once with the seller, and then with the buyer 30 seconds later. Since you’re closing twice, you have to pay closing costs (Usually $500-$1500) this WILL cut into your profit. But...

Double closings are seen as “safer” because you get 2 sets of HUDS, meaning the seller will never even know you made a fee for selling their home. If you’re making $10,000+ I recommend doing this because pocket watchers may hate the fact that you’re making 5 figures.

Assignments:

Assignments mean you technically never close. You sell a contract to purchase for a fee. Let’s say that’s $10,000.

At the closing table on the HUDS, the seller and buyer will both are exactly how much you made as an “assignment fee.” Also...

Since you’re technically not closing because you “sold the contract,” you pay no closing costs. I only recommend assigning if both parties are okay with you making a fee.

Which one will you use on your next deal?