Double Closing vs Assignment Contract | Which is Best for Wholesaling Real Estate?

Hey guys it’s Cody Sperber the Clever Investor here and today I want to talk about closing wholesale deals! 🤑 All the time I get asked about the difference between assignments and double closes, so today I thought I would break it all down for you.

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Wholesaling real estate is one of the quickest ways to make money through real estate investing. You don’t need money, experience, credit or a real estate license. Which is why so many new real estate investors choose to wholesale real estate. Expect when it comes to closing a real estate wholesale deal you need to know if you want to do an assignment OR a double close. So let’s break it down…

✔ Assignment:

Basically an assignment is where you’ve already worked out a deal to buy a piece of real estate from a motivated seller and you’ve filled out a purchase and sale agreement. Inside that purchase and sale agreement is all the terms of the deal. Once you have that house under contract you have equitable rights in the property. In order to do an assignment you would go and find a cash buyer and assign your contractual rights onto someone else. Basically this cash buyer is stepping into your shoes, and you’re stepping aside and you would then get the assignment fee.

Pros: It’s cheap because it’s one set of closing costs that the cash buyer is likely covering and there’s only one transaction. It’s also simple because your contract is literally ONE page! All of this can make an assignment deal very fast.

Cons: Everyone knows what your assignment fee is, basically if you’re making too much money either side is going to be upset with you. Consider your bridges burnt and you can have your seller getting squirrely or you can have a cash buyer back out of the deal. Basically if you’re making $5K or less, you should go with an assignment.

✔ Double Close:

A double close in real estate is where you have two transactions happening at the same time. The wholesaler (aka YOU) is going to have one transaction with the motivated seller, and another transaction with the cash buyer. You would have a purchase and sales agreement with the motivated seller and then you start shopping the deal around town. Once you find a cash buyer you would fill out purchase and sales agreement with the cash buyer. With both deals you want the contract to lean in your direction. For instance, with the motivated seller you want flexibility, just in case you have to abandon ship. For your cash buyer you want stricter terms so they can’t bail on you once they committed.

Pros: With a double close you have good visibility. Nobody is going to be able to know how much you’re making because it’s in two separate transaction. Anything near $20K, you’re going to want to do a double close, no hurt feelings on how much money you’re making.

Cons: Despite the potential of making really good money a double close is going to cost way more. You have two sets of closing costs, you would likely pay the motivated sellers closing costs and the cash buyer will pay yours. But different from an assignment, you have to pay a set of closing costs meaning you might make a little less.

Hopefully this helps you guys get started and pushes you to start writing some offers!

Oh and if you want my FREE set of contracts then go here:
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DROP a COMMENT about what you thought about this video & what you wanna see next..until next time..

- Take care, comb your hair..

Cody Sperber, Clever Investor OUT! 😎

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ABOUT CODY:
Cody Sperber is a real estate investor, cryptocurrency investor, social media influencer, and entrepreneur from Arizona that has successfully flipped over 1000 houses and is currently one of the largest investment educators in the world. He's been featured in Forbes, INC, Entrepreneur, Buzzfeed, and Huffington Post as well as on multiple episodes of Million Dollar Listing Los Angeles.

Видео Double Closing vs Assignment Contract | Which is Best for Wholesaling Real Estate? канала Clever Investor