Double Closings? Assignment? Wraps? Pass Through?- What is the difference?

[Tekaeus Flowers]

Double Closings? Assignment? Wraps? Pass Through?- What is the difference?

[Ryan Webber]

You really need to spend some time reading through the forums. You have some unrelated terms mixed up.

Assignment - a wholesaling exit strategy where you assign your contract with the seller to your buyer. The transaction ends up being between your buyer and your seller and you get an assignment fee.

Double closing - a wholesaling exit strategy where you sign a contract between you and the seller and a separate contract between you and the buyer. You take the difference between the two prices minus closing costs.

Wraps - this is when you carry the note to someone but you still have a note on the property. Its called a Wrap Around Mortgage. Some states have specific laws around these types of transactions. This really isn't a wholesaling strategy.

Pass Through - refers to passing through the title insurance fee with a double closing. Called a Title Premium Pass Through. Your seller pays let's say $500 for title insurance for selling a property to you for $50,000. The title insurance fee for your transaction with your buyer in which you are selling it for $60,000 is $600. On a Title Premium Pass Through, the title agent "passes through" the $500 from the first transaction to the second transaction. This usually requires the seller to specifically sign off on it.