Assignment Fee vs Double Close: Which Is Better for Your Deal?

Every wholesaler faces this decision: assign the contract or double close? The answer isn’t always the same — it depends on the deal, the seller, and your end buyer.

Here’s a clear breakdown of when to use each strategy.

What Is an Assignment Fee?

An assignment is the simplest wholesale exit. You sign a purchase contract with the seller, then assign your position in that contract to a cash buyer for a fee. The buyer closes directly with the seller.

How the money flows:

1. You get the property under contract at $120K
2. You assign the contract to a buyer at $135K
3. The buyer closes with the seller at $120K and pays you a $15K assignment fee at closing

Pros of Assigning

• Simplest and fastest — One closing, less paperwork, lower costs
• No need for funding — You never actually buy the property
• Quick turnaround — Can close in days once a buyer is found
• Lower closing costs — Only one set of title/escrow fees

Cons of Assigning

• Fee is visible — Both the seller and buyer can see your assignment fee on the HUD-1/closing statement
• Some sellers won’t allow it — Certain contracts or sellers prohibit assignment
• Buyer may negotiate — If they see a large fee, they might push back
• REO/bank-owned deals — Most institutional sellers don’t allow assignments

What Is a Double Close?

A double close (also called a simultaneous close or back-to-back close) involves two separate transactions. You buy the property from the seller, then immediately sell it to your end buyer — often on the same day.

How the money flows:

1. You buy from the seller at $120K (Transaction A)
2. You sell to the end buyer at $145K (Transaction B)
3. Your profit: $25K minus closing costs on both transactions

Pros of Double Closing

• Fee is hidden — Neither seller nor buyer sees your spread
• Higher profit potential — You can mark up more aggressively since it’s not visible
• Works on any deal — Including REOs, bank-owned, and contracts that prohibit assignment
• More professional — You appear as an actual buyer, not a middleman

Cons of Double Closing

• Higher closing costs — Two sets of title fees, transfer taxes, etc.
• May need transactional funding — Some title companies require you to bring funds for the A-B transaction
• More complex — Two closings to coordinate, more paperwork
• Takes longer — Even “simultaneous” closings can take a few extra days

When to Assign

Choose assignment when:

• Your fee is under $10K and you don’t mind it being visible
• The seller’s contract allows assignment (most standard contracts do)
• You want the fastest, cheapest close possible
• You’re working with a cooperative title company that handles assignments regularly
• The deal is straightforward and the buyer won’t flinch at the fee amount

When to Double Close

Choose a double close when:

• Your spread is $15K+ and you don’t want it visible
• The seller’s contract prohibits assignment (REO, bank-owned, HUD)
• You want to appear as the buyer for credibility
• The deal has multiple potential buyers and you want to maximize your markup
• You’re doing a higher-end deal where fee optics matter

The Hybrid Approach

Many experienced wholesalers use both strategies depending on the deal:

• Small fee, easy deal → Assign (save on closing costs)
• Large spread, sensitive seller → Double close (protect your margin)
• REO or institutional seller → Double close (assignment not allowed)

How DispoBridge Handles Both

When you submit a deal through DispoBridge, we help you execute either strategy:

• For assignments: We connect you with a buyer, the assignment paperwork is straightforward, and you get paid at closing.
• For double closes: We match you with a buyer and coordinate timing so both transactions close smoothly. Some of our buyers can even provide transactional funding.

The key is getting a qualified buyer fast — and that’s what our network of 100+ cash buyers delivers.

Submit your deal and we’ll help you pick the right exit strategy.