There are various paths through the complex web of transactions in real estate. Among these techniques, double closing and assignment are two methods to know. Whether you’re a first-time real estate investor or an experienced player, you must understand how to employ these two tested strategies.
What Is Double Closing and How Does It Work?
As the name suggests, double closing requires you to make two contracts. One is with the seller to purchase the property, and the other is with the final purchaser to sell it to them. The sales from the seller to you and from you to the ultimate buyer happen back-to-back on the closing day, frequently at the same title firm.
With wholesale real estate double closing, you are the only one who can see how much money you are making from the deal. Since there are two transactions, you must deal with two sets of closing charges. However, this shouldn’t prevent you from using this approach.
What Is the Assignment Contract, and How Does It Work?
Using this strategy, you assign your position in the contract with the distressed seller to your cash buyer. The trick is that since you are a principal in the transaction and are not required to have a realtor’s license to wholesale homes in this manner, you are permitted to charge an assignment fee. Once the deal is closed, you have money in your pocket.
The advantage of this approach is that it only involves one set of closing charges, which your cash buyer will cover. It also costs very little money. The drawback is that privacy is lost. The assignment contract’s requirement ensures that all parties can see how much money you bring in from the agreement. The deal’s transparency can make the parties challenging to work with if you make a sizable profit.
Which Should I Pick: Double Closing or Assignment?
It depends on a few factors when deciding between the two. Double closing can be the best option if you value privacy and transaction control. If you’re looking for a quick and inexpensive way to turn a profit, then an assignment contract should be your pick.
I hope this helps you understand the distinctions between a double close and an assignment of a contract transaction a little better. With this knowledge and set out your real estate endeavors, and break into this profitable industry. However, having the proper partner, such as DoubleClose.Com, can make all the difference as you begin your real estate experience. Do you require transactional funding for double close deals in your city? We collaborate with real estate wholesalers anywhere. After completing our quick qualification process, you will be on your way to closing. Contact us right away to find out more!