What is the difference between a double close and an assignment?

An assignment transfers your original contract and puts your fee on the settlement statement. A double close uses two separate contracts and two closings, so what you paid and what you sold for stay on separate paperwork.

Do both closings have to happen on the same day?

Yes. A double close is a simultaneous transaction, under 24 hours. If your two closings are days or weeks apart, transactional funding is the wrong product for the deal.

Can I double close with any title company?

No. The closing agent has to be willing to run back-to-back closings, disburse the A-B leg from the C-side proceeds, and send funds by wire rather than check. Confirm all three before you go under contract.

What does double close funding cost?

It starts at 1.5% of the amount funded with a $1,500 minimum, so $1,500 on a $100,000 purchase. The fee comes out of the spread at closing and there's nothing due up front.

Why does it matter whether the title company wires the funds?

A wire returns our capital within about thirty minutes of the second closing. A check can take a week to arrive and clear, which turns a same-day transaction into a week-long loan.

Do you check credit for double close funding?

No. We underwrite the transaction, which is why the two contracts and the title company matter more than your credit profile.

Double close funding for the A-B leg

Two contracts, two closings, one day. You buy from the seller and sell to your end buyer within hours, and we fund the purchase so your own money never has to show up.

What a double close is

A double close is two separate but related closings that happen on the same day. You will also hear it called a simultaneous closing or a back-to-back closing.

There are three parties. The seller is A, you are B, and your end buyer is C. A sells to B, then B sells to C, and both of those happen within hours of each other.

The important part is the timing. Two contracts, same day, under 24 hours. If your second closing is next week, you've got something else on your hands.

Why investors double close instead of assigning

On an assignment you hand your contract to the end buyer and your fee shows up on the settlement statement for everyone to read.

On a double close there are two contracts and two closings, so what you paid and what you sold for stay on separate paperwork.

Some people want their spread kept private. Others are working around a 1031 exchange, a state rule, or a transfer into an LLC.

We don't need the reason. We need your two contracts to line up and your title company to be able to run it.

Where the money comes from

Say you've got a property under contract at $100,000 and an end buyer at $120,000.

You can't sell what you don't own, so we fund the $100,000 for the A-B closing. Minutes later the B-C closing funds from your end buyer, and that money pays us back.

At 1.5% our fee on that deal is $1,500, which is also our minimum, taken out of the spread at closing. You keep $18,500.

Nothing's due before closing. We don't fund until the table is ready, so there's nothing to charge you up front.

You can't sell what you don't own. Funding the A-B leg is the only thing standing between the contract and the spread.

What your title company has to be able to do

This is where double closings die, and it's almost always fixable if you check early.

Ask your closing agent these before you go under contract.

Will they wire the funds rather than cut a check? Some title companies only send checks because of wire fraud. If we wire $100,000 and a check comes back, that money is tied up for a week instead of thirty minutes. That kills the deal for us.
Have they done a double closing before? Plenty of title companies haven't, and finding that out on closing day gets expensive.
Will they run both closings, ideally at the same office on the same day? Two different title companies is workable, but it costs more because it's slower and riskier.
Will they disburse the A-B leg from the C-side proceeds? That's the mechanism the whole structure depends on.

What we need from you

Double closes need less verification than earnest money deals, and they move faster because of it.

Both contracts. The A-B and the B-C. If you've only got one, you either don't have a double close yet or you're not ready to submit.
Your title company contact. The escrow officer or attorney handling the closing, so we can confirm the wire and the timing directly.
The closing date, and confirmation that both legs land on it.

What it costs

Double close funding starts at 1.5% of the amount funded, with a $1,500 minimum. On $100,000 that works out to exactly $1,500.

There's no interest, because the money is out for hours. There's no up-front fee, because we don't fund until closing.

The rate moves with the size and the complexity of the deal. Two title companies instead of one costs more, because it takes longer and carries more risk.

We fund up to $100M on double closings, in all 50 states.

Why deals get rejected

Most of them come apart for the same few reasons.

The closings are not on the same day: If we fund the buy and the sell happens two weeks later, we didn't fund a transaction. We bought a house. That's a different product and a different conversation.
Only one contract exists: No B-C contract means no end buyer locked in, which means there's nothing to repay us. Come back when both are signed.
The title company will not wire: A check turns a thirty minute round trip into a week. Confirm this with your closing agent before you contract, not after.
The numbers don't match the contracts: The purchase price you send us has to be the purchase price on the A-B contract. When those disagree, everything stops until we know which is real.

Common questions

What is the difference between a double close and an assignment?: An assignment transfers your original contract and puts your fee on the settlement statement. A double close uses two separate contracts and two closings, so what you paid and what you sold for stay on separate paperwork.
Do both closings have to happen on the same day?: Yes. A double close is a simultaneous transaction, under 24 hours. If your two closings are days or weeks apart, transactional funding is the wrong product for the deal.
Can I double close with any title company?: No. The closing agent has to be willing to run back-to-back closings, disburse the A-B leg from the C-side proceeds, and send funds by wire rather than check. Confirm all three before you go under contract.
What does double close funding cost?: It starts at 1.5% of the amount funded with a $1,500 minimum, so $1,500 on a $100,000 purchase. The fee comes out of the spread at closing and there's nothing due up front.
How much can you fund on a double closing?: Up to $100M, in all 50 states.
Why does it matter whether the title company wires the funds?: A wire returns our capital within about thirty minutes of the second closing. A check can take a week to arrive and clear, which turns a same-day transaction into a week-long loan.
Do you check credit for double close funding?: No. We underwrite the transaction, which is why the two contracts and the title company matter more than your credit profile.

Send us both contracts

Submit the A-B and the B-C along with your title company contact. We confirm the wire and the timing directly with them, so you aren't stuck relaying messages.

Submit My Deal

Or you'd rather be the one funding these

Double closes are quick, they need less verification than earnest money, and the capital is back in your account the same day.

If the lending side is what caught your eye, I run a free group where I break down how this business actually works, including the parts nobody puts in the ads.

Join the free group

Keep reading

Funding is for business-purpose real estate transactions and is subject to underwriting. Published rates are starting points and can change with the size, structure, and risk profile of a specific deal.