When to Wholesale vs. When to Double Close?

Question

I have noticed that some wholesalers have used the method of double closing to facilitate some of their deals. As I understand a double-close means literally buying the property as the buyer then turning around and selling it (immediately) to another buyer the. At the same time, this hides from the original seller your intentions to resale the contract to a higher paying bidder buyer. So my question is this: In what instance would I want to utilize this double close method instead of doing the standard wholesale method?

Elvira Longoria · Answer

@Barry Pekin

Thanks for that info Barry. I have also found Double Close method unessessary and a little shady to be honest. I think the neccessity of it has alot to deal with kind of person you are dealing with but I wasn't too sure if there was some other underlying reason for it. Thanks again for you input!

Barry Pekin · Answer

I'm not a fan of double closing, or of hiding anything from the seller.  I prefer to be very open and honest with them.  Yes, you are going to make a profit on the deal, and they will be ok with that if they understand the work you're doing for them.  You're helping them out of a tight situation by finding someone who will quickly buy their house as is.   As such, I prefer the standard contract assignment to the buyer.

You also save expenses by avoiding two closings.