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The Wholesaler’s Strategy Guide

The Double Close Explained

A double close is a wholesaling strategy where you legally buy a property from the original seller and immediately resell it to your end buyer through two separate, fully-documented real estate transactions — with your profit completely off both settlement statements.

The Legal Structure

What Actually Happens on Paper

A double close is not one transaction with three parties — it’s two completely independent real estate transactions executed back-to-back. Each has its own paperwork, its own closing, and its own deed recording.

1

Two Purchase Contracts

An A–B contract between the original seller and you, and a separate B–C contract between you and your end buyer.

  • Independent prices and terms
  • Each enforceable on its own
  • Neither references the other
2

Two Settlement Statements

The title company prepares a separate HUD/CD for each transaction. Your spread shows only on the disbursement summary, not on either party’s closing statement.

  • Seller sees A–B only
  • End buyer sees B–C only
  • Profit stays between you and escrow
3

Two Deed Recordings

The first deed transfers title from the original seller to you. The second deed transfers it from you to the end buyer. Both record at the county recorder’s office.

  • You appear in the chain of title
  • Recordings often minutes apart
  • Public record — fully transparent
Terminology

The Words Wholesalers Actually Use

Title companies, lenders, and wholesalers use a specific vocabulary. Knowing these terms makes the rest of the process much easier to follow.

A–B Leg

The first transaction: original seller (A) sells to you (B). This is the leg that needs transactional funding.

B–C Leg

The second transaction: you (B) sell to your end buyer (C). The B–C funds repay the A–B transactional funding.

Transactional Funder

The capital partner who provides short-term funds for the A–B closing. Repaid the same day from B–C proceeds.

Simultaneous Close

Another name for a same-day double close. Both transactions happen on the same business day at the same title company.

Wet Close

A closing where funds are wired and deed recorded the same day. The default for Arizona double closes.

Dry Close

A closing where docs are signed but recording is delayed (rare in Arizona, common in some other states).

Escrow Holdback

Funds held by the title company between A–B closing and B–C closing — typically only minutes to a couple hours.

EMD

Earnest Money Deposit — goodwill funds put up at contract signing. Note: we do NOT offer EMD funding.

Chain of Title

The historical record of property ownership. In a double close, both you and the end buyer appear in this chain.

Assignment

The alternative to a double close. You transfer your contract rights to your end buyer for a fee that appears on the settlement statement.

The Honest Tradeoffs

When the Strategy Wins — and What It Costs

No strategy is right for every deal. Here’s a straightforward look at what you gain and what you give up by structuring as a double close instead of an assignment.

+ Advantages of a Double Close
  • Your profit spread stays private — nobody on either side sees it
  • Works on non-assignable contracts (REO, HUD, probate, anti-assignment clauses)
  • No assignment-disclosure issues with state regulators or attorneys
  • End buyer’s lender has clear title in your name — no underwriter confusion
  • Two clean transactions for your bookkeeping and tax records
  • Comfortable with larger spreads ($15K+) where disclosure would create friction
− Tradeoffs to Know
  • Higher closing costs — two sets of title insurance, recording fees, escrow fees
  • Transactional funding fee (we publish ours on the fees page)
  • More moving parts — both legs must close on time or the chain breaks
  • Requires a title company experienced with back-to-back transactions
  • Two separate closings on your calendar even if minutes apart
  • Higher administrative overhead than a simple contract assignment
Setting the Record Straight

Common Myths About Double Closes

Most of what you’ll read in wholesaling forums is wrong, exaggerated, or applies to a different state. Here’s what’s actually true in Arizona.

MYTH · “Double closes aren’t legal.”

FACT · Double closes are fully legal in Arizona when properly funded and documented through a licensed title company. They are simply two real estate transactions executed in sequence — both above-board, both recorded, both compliant with ADRE rules. See the Arizona Department of Real Estate at azre.gov for current statutes.

MYTH · “Title companies refuse to do them.”

FACT · Most experienced Arizona title companies will close back-to-back transactions if the file is clean and funded properly. The few that decline are usually concerned about poorly-documented seasoning or funds-source issues — both solvable with the right transactional funder.

MYTH · “You need cash in the bank to qualify.”

FACT · You do not need to fund the A–B closing from your own pocket. A transactional funder wires the A–B funds to escrow, and gets repaid from the B–C closing the same day. The deal funds itself.

MYTH · “The end buyer’s lender will see your spread.”

FACT · The end buyer’s lender only sees the B–C transaction. Your purchase price from the original seller (A–B) is a separate deal that does not appear on the B–C settlement statement. The lender underwrites against the B–C purchase price and appraisal — full stop.

MYTH · “You need a real estate license.”

FACT · You do not need a license to wholesale property you have under contract or that you own briefly during a double close. You are principal to both transactions — not a broker representing someone else. (You DO need a license to represent other people’s deals.)

Ready to Run Your First Double Close?

Submit your A–B and B–C contracts. We’ll review your package same day and confirm whether you can close.