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Double Close Profit Calculator

A double close uses transactional funding to buy from seller, then immediately resell to end-buyer. Unlike assignment, the wholesaler technically owns the property for minutes between the two closes. Used when contracts aren't assignable or to hide spread from seller. This calculator sizes profit after higher transaction cost.

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Net profit

$28,600

Gross spread (B-C − A-B)

$35,000

Transactional funding cost

$4,000

Total close costs

$6,400

Margin % of B-C

13.62%

How the math works

A-B $175K → B-C $210K = $35K spread. Transactional fee 2% × $175K + $500 flat = $4,000. Title both sides $1,800, legal $600 = $2,400. Net $28,600 (13.6% of B-C).

Assignment would net $30-32K (fewer fees). Double close costs $2-4K more but protects the fee from seller visibility and allows stricter assignee financing. Choose assignment when possible; double close only when needed.

How to Use

  1. Enter A-B contract price (seller to wholesaler) and B-C price (wholesaler to end-buyer).
  2. Add transactional funding cost (percentage fee), double-title cost, and escrow fees.
  3. See gross spread, total costs, and net profit.

Frequently Asked Questions

When do I need double close vs assignment?

Contract bans assignment, or end-buyer requires clean chain of title (common with agency lenders). Assignment has lower cost; double close has stronger legal protection and hides your fee from seller.

What's transactional funding?

Short-term lending (hours to 1 day) for the back-to-back closing. Lender funds A-B purchase with end-buyer's C closing funds repaying within hours. Fee: 1-3% of A-B price, typically $2K-$8K on a $150K-$250K deal.

Can I avoid it entirely?

Yes. If end-buyer has cash, they can close directly to escrow after your contract, with wholesaler fee paid through escrow as a 'wholesale assignment' line. Many title companies allow this — look for wholesale-friendly title.

Tax treatment?

Same as assignment — ordinary income as a dealer. You're not holding for rental, so capital gain treatment doesn't apply. Plus: self-employment tax if you're a sole proprietor. Talk to a CPA before structuring.

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