What Is Double Closing in Real Estate?

Double Closing Basics

A double closing is when you buy and sell the same property on the same day. It involves two separate closings that happen back-to-back, usually within hours of each other.

Here’s the simple breakdown: You find a property, get it under contract to buy it, then find someone else who wants to buy it from you for more money. Both deals close on the same day.

How Double Closing Works

The process involves two separate purchase contracts and two separate closings:

First Closing (A to B)

• You buy the property from the original seller
• You become the legal owner
• The deed transfers to your name

Second Closing (B to C)

• You sell the property to your buyer
• The deed transfers from you to the final buyer
• You get paid the difference between what you paid and what you sold it for

The money from the second closing often pays for the first closing, which is why timing is so important.

Double Closing vs. Wholesaling

Double closing is different from assignment contracts, which is another common wholesaling method:

Assignment Contracts

With assignment, you never actually buy the property. You just transfer your rights to buy it to someone else. The original seller sells directly to your buyer.

Double Closing

With double closing, you actually own the property, even if just for a few hours. This gives you more control but also more risk and responsibility.

Benefits and Drawbacks

Benefits

• Your profit stays private
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• You have full control during the short ownership period
• Some sellers prefer dealing with actual buyers, not wholesalers
• You can make repairs or improvements between closings if needed

Drawbacks

• Higher costs ( two sets of closing costs, title insurance, etc.)
• More complex paperwork and coordination
• You temporarily own the property and its risks
• Need more cash or financing for the first purchase

Legal Things to Know

Double closing is legal, but there are important rules to follow:

Full Disclosure

Be honest with all parties. Don’t hide the fact that you’re buying and selling the same day. Most title companies and lenders want to know about double closings upfront.

Financing Rules

If your final buyer is using a loan, their lender might have rules about same-day transactions. Some lenders require a “seasoning period” where you must own the property for a certain time before selling.

Who Uses Double Closing?

Double closing is commonly used by:

• Real estate wholesalers who want privacy
• Investors who want full control during the process
• People who need to make quick improvements between purchase and sale
• Investors dealing with sellers who won’t accept assignment contracts

It’s not typically used by regular home buyers or sellers in normal real estate transactions.

Getting Started Safely

If you’re thinking about double closing, here’s how to do it right:

• Work with an experienced title company that handles double closings
• Have a real estate attorney review your contracts
• Make sure you have funding lined up for the first purchase
• Understand all costs involved before starting
• Have backup plans if the second closing falls through

Double closing can be a useful tool for real estate investors, but it requires careful planning and professional help. Always prioritize legal compliance and honest dealing with all parties involved.