Assignment Vs Double Closing
Some people like to assign properties and others like to double close. Some people aren't sure what the difference is so I thought it would help to explain. In the real estate investment world, assigning a contract is what most wholesalers use as their method to make money. Assigning a contract is assigning the rights on an agreement of sale for someone other than the original buyer to close and own the property. In this instance, the rights are being sold and the house is only going through one transaction with an assignment fee. In a double closing there are actually two transactions happening. The double closings normally take place during the same day and sometimes within seconds of each other. The original buyer takes title to the property and then sells it to an end buyer. The reason people use the double closing method is usually because there is a large profit and they prefer the end buyer is not aware of it. In the event of a double closing, there are two sets of taxes, fees etc so when there is a small profit being made, the assignment is normally used.
Ian Walsh
215.839.3271
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