BiggerPockets

I am by no means a wholesaling expert however, if you use an exit strategy of "assignment of contract" your investor buyer signs (as do you) a form entitled assignment of contract which stipulates that they are to take over the purchase contract and pay you a fee.
Keep in mind that your buyer will have to be an all cash buyer, or at least pay the assignment fee in cash as a lender will not loan on the purchase price + assignment fee (in most cases that I am currently aware of).

Your other option is to double close which involves you having a title company willing, familiar, and able to do them. You will have double the costs for closing so keep that in mind.

Can your investor just go around you to the seller? Yes and no. If you approach a buyer and you have only three days left to do the deal, then they could simply wait until your contract expires and circumvent you. To protect yourself, you need to have a reasonable size buyers list and get multiple interest right away. If you are negotiating great investment deals, the investors will come to you. The key is the quality of your investment. If it is just average or below average, you will have little interest, and a great deal will bring numerous buyers wanting the deal.

As a buyer of 6-8 properties a month for the past 4 years I have some insight on this subject.
The very most important aspect of "wholesaling" properties without actually having any money is a solid buyers list. This might only be 1-2 people in your market who actually have the cash or credit line to be able to close quickly. You need to know what your buyer expects in a property, his buying guidelines etc...
I have a handful of "wholesalers" that know what i want, what i am willing to pay and the areas that i will invest in. Our relationship is such that when they have a potential property, we discuss it in detail and i give them the price range that i am a buyer for before they make an offer.
you have to be careful on contract assignments. in my experience, the majority of banks will not allow an assignment on a foreclosed property period. most title companies will only do a double close if the buyer is paying cash. another scenario that just happened to me for the 1st time in the past 200+ deals is that i bought a foreclosure but my agent didnt inform me it was a HUD home. i paid $25k cash and had it rehabbed and sold in 3 weeks to one of my buy and hold investors that was also paying cash but my title company informed me that i couldnt resell it for 90 days for more than $30k.
my deal is still good, i just have to wait 60 more days to get paid.

what exactly is double closing

Originally posted by Justin Stores

what exactly is double closing

It is where you open two escrow simultaneously wher one is your seller (A) and you (B). The second escrow is you (B) and your end buyer (C).
It is used so that you don't have to come to the table with your own funds to cl;ose a deal. You use funds from C to close your A_B transaction, then the B_C transaction closes shortly after and you keep the difference as your profit. This is done when you cant simply "assign" a contract.