Assigning Contract vs. Double Closing: Which Wholesaling Strategy Is Better?
Author: Learning Real Estate Investing
If you’re just getting started, assigning contracts is the fastest and lowest-risk way to wholesale real estate. If you want to keep your profits private or work with stricter buyers, double closing gives you more control—but comes with more cost and complexity.
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Table of Contents
- What Is Assigning a Contract?
- What Is a Double Closing?
- Assigning Contract vs Double Closing
- When to Use Each Strategy
- Real Example
- Common Mistakes
- FAQ
- Resources
What Is Assigning a Contract?
Assigning a contract means you put a property under contract and then sell your rights in that contract to another buyer.
LREI Deal Analyzer.
You never actually buy the property. The end buyer purchases directly from the seller, and you collect an assignment fee.
Learn the full process here:
The Real Estate Investing Blueprint
What Is a Double Closing?
A double closing means you actually purchase the property and then immediately resell it to your buyer.
This involves two transactions:
- Seller → You
- You → Buyer
Assigning Contract vs Double Closing
| Feature | Assigning | Double Closing |
|---|---|---|
| Upfront Money | Low | Higher |
| Risk | Low | Moderate |
| Speed | Fast | Slower |
| Profit Visibility | Visible | Hidden |
When Should You Assign?
- You’re a beginner
- You want fast deals
- You have little capital
- Your buyer allows assignments
When Should You Double Close?
- You want to hide profit
- Assignment fee is large
- Buyer requires it
- You have funding access
Real Estate Investing Quiz.
Real Example
You lock a property at $120,000 and sell at $140,000.
- Assignment: $20,000 fee
- Double Closing: $20,000 minus closing costs
Run deals like this using:
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Common Mistakes
- Not verifying assignment clauses
- Bad deal analysis
- No buyer list
- Ignoring local laws
Finding Deals
Need leads?
this article.
Stay motivated:
FAQ
Is assigning legal?
Yes, but check local laws.
Do I need money?
Minimal for assigning, more for double closing.
Which is better?
Depends on the deal.
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