Wholesaling: Assignment vs. Double Close

[David M. Hagley, Jr.]

I have been studying the wholesaling process and see that there are two methods: Assignment and Double Closing

From what I have read, it seems that double close would be the cleanest method.

A couple of questions that I have is:

1. What is the pros and cons of each method?

2. What is others experience with "Transnational Loans" for a double close?  

Any other input is appreciated.

David Hagley 

[Barry Pekin]

@David M. Hagley, Jr.

There are no tax implications either way.  You're going to pay taxes (regular income / short-term capital gains - both the same) no matter what.

Double closings do have double closing fees, though some title companies won't charge a full double fee because, for example, they don't have to do the title work twice.

If you're trying to prevent the seller from seeing what you're making, you can do a blind hud, or blind disclosure, or whatever it's called.  This is a mechanism where the buyer sees their half of the transaction, and the seller sees their half.  Talk to your title company about this.  If they can't do it, talk to others.  I only recently learned about this, but I believe it's been around for a while.