The direct answer
A wholesale assignment and a double-close transaction can produce different proceeds, cash requirements, disclosure obligations and risks. In an assignment, a contract interest may be transferred for an agreed fee; in a double closing, the wholesaler actually purchases and resells the property through two settlements subject to applicable law.
Define the transaction structure
Verify assignability, local licensing restrictions, required disclosures and contractual obligations; not every deal permits assignment.
To apply the approach to an editable scenario, use the Wholesale Real Estate Calculator. For the neighboring question, explore Maximum Allowable Offer Calculator.
Calculate net assignment proceeds
An assignment fee should be reduced by marketing, legal, transaction and other relevant expenses rather than treated as pure profit.
Price both closings in a double close
Acquisition funding, title and settlement costs, transfer taxes, financing fees and timing risk can affect cash profit. The two sale prices alone do not establish economic return.
Worked example
An assignment with a $15,000 fee and $2,000 related expenses yields $13,000 before taxes. A double close with a $25,000 price spread but $9,000 total transaction/funding expenses yields $16,000 before taxes and additional risks.
Open Wholesale Real Estate Calculator and test your assumptions →
Common mistakes and limitations
Do not assume the larger price spread is automatically the better deal or that wholesaling rules are identical in every state.
Wholesale real-estate legality and licensing rules vary by jurisdiction; calculator is numerical only and does not provide legal advice.
Frequently asked questions
Is a double close always required to wholesale?
No. Feasible structures depend on contract terms and local law.
Is an assignment fee all profit?
No. Relevant expenses and possible taxes reduce the amount retained.
Sources and further reading
The article’s examples are illustrative arithmetic. The references below provide context for operating, valuation or transaction concepts; they do not endorse the assumptions or the calculator.
- IRS — Publication 527 (2025), Residential Rental PropertyRental income and expense concepts; operating/rental expense context.
- Office of the Comptroller of the Currency — Comptroller's Handbook — Commercial Real Estate LendingNOI, direct capitalization, cap-rate valuation and DCF concepts for commercial real estate.
Read our editorial policy for the scope of these educational methods.