Double closing costs: both sides, one formula.
In a double close you buy the property from the seller and resell it to your end buyer, usually the same day. You pay buyer-side costs on the first closing and seller-side costs on the second, plus transactional funding if you borrow the purchase money. What you keep is the resale price minus your contract price minus all of that.
The formula
Which side pays transfer tax and owner's title insurance depends on the state, county and contract. Ask your title company for a settlement estimate for each closing and put every line in one of the two buckets above.
Double close or assignment?
An assignment has one closing, and your fee is paid at it. A double close keeps your spread off the assignment paperwork, and works when the contract can't be assigned, but costs a second closing and often funding. Put your numbers into the free assignment vs double close calculator to see what you keep each way. If the assignment fee would be large enough to put the buyer off, also check that the deal still works for them in the wholesale deal analyzer.
Ask your title company before you sign
1. Do you close back-to-back transactions?
Some title companies don't. Find one that does before you go under contract.
2. What will each closing cost?
A settlement estimate for closing A and closing B, line by line, at your contract and resale prices.
3. Will the end buyer's lender accept it?
If your buyer is financing, some lenders have rules about how recently the seller took title. Cash buyers avoid this.
4. Can transactional funding be used here?
Confirm the title company works with your funder and when the funds must arrive.
What to track in your CRM
Exit type and both sets of costs
A picklist for assignment or double close on every deal, with closing A, closing B and funding costs as fields. Reports by exit type then show what you actually kept, not just the spread.
Questions
What is a double close?
Two closings back to back, often the same day. In the first you buy the property from the seller; in the second you sell it to your end buyer. You are the buyer in one and the seller in the other, so you pay closing costs on both.
Why double close instead of assigning?
Usually because the spread is large and you do not want the seller or buyer to see it on the assignment paperwork, or because the contract does not allow assignment. The cost is a second set of closing costs and, if you do not use your own cash, transactional funding.
How much does a double close cost?
It depends on the state, county, title company and price, so there is no single number. Ask your title company for a settlement estimate for each closing before you choose, and add any transactional funding fee.
Who pays transfer tax and title insurance?
It depends on local custom and the contract. In some places the seller pays transfer tax, in others the buyer, or it is split. In a double close you are on both sides, so check each line of both estimates.
Can every title company do a double close?
No. Some will not close back-to-back transactions, and some end-buyer lenders have rules about how recently the seller bought the property. Ask before you go under contract. This page is not legal or tax advice.
Related
Assignment vs double close · Assignment fee guide · Wholesale deal analyzer · All guides · All free tools
Last updated October 2026. Not legal or tax advice.
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