Double Close
Two simultaneous closings on the same property — an investor buys from the seller then immediately sells to the end buyer.
Definition
A double close (also called a double escrow or simultaneous close) involves two separate but coordinated closings on the same property on the same day. First, the investor closes on the purchase from the seller (the A-to-B transaction). Then, the investor closes the sale to the end buyer (the B-to-C transaction).
Wholesalers use double closes when they can't or don't want to use a contract assignment — for example, if the seller prohibited assignment, if the assignment fee would be embarrassingly large for the seller to see, or if the transaction involves an MLS-listed or bank-owned property.
The mechanics require careful coordination with the title company and often require the investor to bring transactional funding (short-term bridge capital) for the A-to-B purchase, which is then repaid when the B-to-C sale closes minutes or hours later. Not all title companies are comfortable with double closes — find one that handles them regularly.
Related Terms
Contract Assignment
Transferring the right to purchase a property from a buyer (assignor) to a third party (assignee) for a fee.
Wholesaling
Finding distressed properties, getting them under contract, then selling that contract to another investor for a fee.
Title
Legal ownership rights to a property — the bundle of rights that come with owning real estate.
Exit Strategy
The plan for how and when an investor will eventually sell or dispose of an investment property.
Also in "D"
Days on Market (DOM)
The number of days a property has been listed for sale before going under contract.
Debt Service
The total cash required to cover loan payments — both principal and interest — over a given period.
Deed
A legal document that transfers ownership of real property from one party to another.