Who pays for the double closing?

I’m interested in doing a double closing with my first wholesale deal.

I was wondering how I can get the 3rd party buyer to pay for the closing costs? Also, do I have to pay for 2 separate closings?

Thanks so much

There will be 2 separate sets of closing costs- one when you are buying, and one when you are selling.

It should say in your contract who pays for what costs.

I always sell my deals at a net price to me, which means my buyer pays all of the closing costs on the second transaction.

I deal with REOs, and most times they pay the majority of my closing costs on the first transaction, because they force me to use their title company…so I usually only pay a small amount in closing fees when doing a simultaneous close. :cool


Steph is spot on.

You might also look at doing a lease option…Done correctly you can get the same outcome, with far less cost, and headache.

when doing a double close do I have to find financing for the property for the first close or since I have a buyer i’m assigning the contract to it would only be a back up in case they don’t show??

If you have a property under contract and are assigning the contract to your buyer, then you do not need to do a double close. You just assign the contract over to your buyer for a fee, and then get paid at closing.

Whether you are assigning a contract or doing a double close, you should be prepared to close on the deal yourself in the event your buyer falls through. You do not want to make a habit out of backing out of deals.


So the only reason to double close is to hide my purchase price from the buyer to avoid renegotiating. With that said I would need to fund the deal myself on the first close and make sure my buyer has obtained funding for the second close. Am I correct?

Other reasons to do a double close would be if your seller will not let you assign your contract (like REOs and short sales).

Yes, the rest is correct- there will be 2 closings, one where you are buying from the seller, and one where your buyer is buying from you. There are companies out there who will lend you the cash for the first transaction for a few points and a fee. Coastal Funding is one that comes to mind. Try googling them for more info.

Good luck,
Steph :cool