Assignment of Contract vs. Double Closing

Every wholesale real estate deal comes down to a choice: assignment of contract vs. double closing. Both strategies let you profit as the middleman without being the end buyer — but they work differently, cost differently, and aren't always interchangeable. Picking the wrong one for a deal can cost you your profit, your buyer, or both.

This guide breaks down how each strategy works, compares them side by side, and explains when to use which — so you can make the right call every time.

What Is an Assignment of Contract?

An assignment of contract is a wholesale strategy where you sign a purchase agreement with a seller, then transfer ("assign") your rights under that contract to an end buyer — for a fee. You never take title to the property. Instead, the end buyer steps into your position and closes directly with the seller.

How It Works

1. You negotiate a purchase price with the seller and sign a purchase agreement that includes an assignability clause.
2. You find an end buyer and sign an assignment agreement transferring your contractual rights to them — for an assignment fee.
3. The end buyer closes with the seller. Your assignment fee is paid at closing.
4. You never appear on the deed. The transaction is between the seller and the end buyer.

The title company facilitates the closing between the seller and end buyer, handling the title search, title insurance, and settlement — and pays out your assignment fee from the closing proceeds.

Pros and Cons of Assignment of Contract

Pros:

• Lower closing costs — only one set of settlement fees and one title insurance policy
• Simpler — fewer moving parts, less coordination required
• No need for transactional funding — you never need to fund a purchase yourself
• Faster — one closing, one timeline

Cons:

• Your profit is visible — the end buyer (and sometimes the seller) can see the difference between your contract price and what they're paying
• Not all sellers will accept assignable contracts — some add "no assignment" clauses
• Some end buyer lenders won't allow it — certain loan types require the buyer to have a direct contract with the seller
• If the end buyer backs out, you're still obligated on the original contract

What Is a Double Closing?

A double closing — also called a simultaneous closing or back-to-back closing — involves two separate transactions. In the first (A–B), you buy the property from the seller. In the second (B–C), you sell it to the end buyer. Both closings typically happen on the same day.

How It Works

1. You sign a standard purchase contract with the seller.
2. You sign a separate purchase contract with your end buyer.
3. The title company closes the A–B transaction — you take title, a title insurance policy is issued.
4. The title company immediately closes the B–C transaction — you sell to the end buyer, a second title insurance policy is issued.
5. You pocket the spread between the two purchase prices, minus closing costs on both transactions.

Unlike an assignment, you briefly own the property as legal title holder between the two closings — sometimes for just a few hours.

Pros and Cons of Double Closing

Pros:

• Your profit stays private — the end buyer only sees their B–C purchase price, not what you paid the seller
• Works with more end buyers — including those using certain financing that won't allow assignments
• No assignability clause needed — it's two separate, standard purchase contracts
• Harder for the seller to object — they're just selling to you; what you do next is your business

Cons:

• Higher closing costs — two full sets of closing costs, including two title insurance premiums
• Requires funding for the A–B leg — either your own cash or transactional funding
• More coordination — two closings, two title searches, two sets of documents
• More can go wrong — if the B–C falls through, you own the property

Side-by-Side Comparison

| | Assignment of Contract | Double Closing | |---|---|---| | You take title? | No | Yes (briefly) | | Profit visible to end buyer? | Yes | No | | Closing costs | One set | Two sets | | Requires your own funds? | No | Yes (or transactional funding) | | Works with all lenders? | No | Usually yes | | Assignability clause needed? | Yes | No | | Complexity | Lower | Higher | | Best for | Smaller spreads, fast deals | Large spreads, financing end buyers |

When to Use Assignment of Contract

Assignment of contract is the right call when:

• Your spread is modest. If you're making a few thousand dollars on a deal, paying double closing costs will eat into your profit meaningfully. Assignment keeps your cost of closing low.
• Your end buyer is a cash buyer or uses investor-friendly financing. Cash buyers don't care about assignment restrictions, and some hard money lenders allow it.
• The seller is flexible. Some sellers are comfortable with an assignable contract; others aren't. If you've built rapport and they're not asking questions, assignment is often the cleaner path.
• You need to move fast. One closing is simpler to coordinate than two. If your deal is on a tight timeline, assignment of contract removes a layer of complexity.

Assignment of contract is the most common structure for beginning wholesalers in markets like Indianapolis and Kansas City because of its simplicity and lower cost.

When to Use a Double Closing

A double closing makes sense when:

• Your spread is large. If you're making a significant margin on a deal, the cost of two closings is worth paying to keep that number private. A large assignment fee disclosed to an end buyer can cause them to renegotiate or walk.
• The end buyer is using conventional or FHA financing. Many traditional lenders won't allow the buyer to close on an assigned contract — they want a direct purchase agreement. A double closing gives the end buyer their own clean contract.
• The seller won't accept an assignable contract. Some sellers, especially those who've dealt with investors before, insist on a non-assignable contract. A double closing works around this entirely.
• You want maximum privacy. In markets like St. Louis and Detroit, where experienced investors are active and deal details circulate, keeping your purchase price private protects your relationships and your reputation.

How Your Title Company Affects Which Strategy You Can Use

Your title company has more influence over this decision than most wholesalers realize. A few things to know:

• Not all title companies will facilitate double closings. Some are unfamiliar with the A–B / B–C structure and will refuse outright or cause delays. If you're planning to use double closings regularly, confirm your title company has done them before — in your specific market.
• Assignment of contract requires the title company to process an assignment agreement alongside the purchase contract. This is straightforward, but some processors get tripped up if they haven't seen it before.
• Transactional funding for the A–B leg may need to be coordinated with your title company. The lender, the title company, and the closing sequence all have to work together.

Working with a title company experienced in investor deals — whether in St. Louis, Indianapolis, or elsewhere — removes these friction points before they become deal-killers.

Learn more about our closing services and how Aureo Title handles both assignment of contract and double closing transactions.

Aureo Title: Ready for Both

Aureo Title works with wholesale real estate investors across St. Louis, Kansas City, Indianapolis, and Detroit. Whether you're structuring an assignment of contract or a same-day double closing, our team has handled both — and can help you close on your timeline without surprises.

Not sure which structure is right for your deal? Get in touch with our team before you go under contract — a quick conversation can save you from a costly misalignment at the closing table.

Frequently Asked Questions

Can I switch from an assignment to a double closing after I have the property under contract? Yes, in most cases. As long as your original contract with the seller doesn't prohibit it, you can restructure the exit strategy before closing. Talk to your title company early so they can prepare the correct documentation.

Which is more common — assignment of contract or double closing? Assignment of contract is more common among newer wholesalers because of its simplicity and lower cost. Double closings are more common among experienced investors who work with financed end buyers or protect large profit spreads.

Does Aureo Title charge more for a double closing? A double closing does involve two sets of title fees — that's the nature of two transactions. We provide upfront fee estimates so you can factor both sides of the closing into your deal analysis. Contact us for a quote.

Do I need a real estate license to assign a contract in Missouri or Indiana? Consult a real estate attorney in your state for definitive guidance — laws evolve. In Missouri and Indiana, assignment of contract for a fee has been common practice for real estate investors, but regulatory interpretation can change. When in doubt, get legal advice before your first deal.

What happens if my end buyer backs out of a double closing after the A–B has already closed? This is the primary risk of a double closing. If the B–C falls through after you've closed on the A–B, you now own the property. This is why thoroughly qualifying your end buyer — and their funding — before closing day is essential.

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Aureo Title helps wholesale real estate investors close deals across St. Louis, Kansas City, Indianapolis, and Detroit. Whether you're using assignment of contract or a double closing, reach out to our team to get started.