Double Close

Definition

A double close (also called a simultaneous close or back-to-back close) is a wholesale transaction where the wholesaler actually takes title to the property briefly, then immediately resells it to the end buyer at a higher price. Unlike an assignment, the wholesaler owns the property for minutes or hours. Double closes are used when the original contract prohibits assignment, when the wholesaler wants to conceal the spread from the end buyer, or when the lender requires a clean chain of title.