Are you ready to wholesale houses like a pro—but without the risk of being stuck with a property you don’t want?

With our Wholesaler Contract Package, you’ll discover the 3 most effective ways to structure a wholesale deal (plus the pros and cons of each)—along with ready-to-use, fill-in-the-blank contracts that you can start using today!

Let’s break it down…

Wholesaling real estate is a popular investment strategy that involves connecting motivated sellers with interested buyers for a profit. However, structuring these deals effectively is essential for success in the competitive real estate market. In this blog post, we will explore three smart ways to structure your wholesale deals, and we’ll even provide free contract templates to help streamline the process.

Key Points

Assignment of Contract: One of the most common ways to structure a wholesale deal is through an assignment of contract. This method involves entering into a purchase agreement with a seller and then assigning the rights to the contract to a buyer for a fee. The benefit of this approach is that it allows wholesalers to profit from the deal without actually taking ownership of the property. We’ll provide a free assignment of contract template to simplify this process.

Double Closing (Simultaneous Closing): Another smart strategy for structuring wholesale deals is through a double closing, also known as a simultaneous closing. With this method, the wholesaler essentially purchases the property from the seller and then immediately resells it to the end buyer in a back-to-back transaction. This approach can be beneficial when the seller and end buyer prefer not to know about each other. We’ll include a free double closing contract template for your convenience.

Option Contracts: Utilizing option contracts is a creative and flexible way to structure wholesale deals. Wholesalers can secure the right to purchase a property at a predetermined price within a specified period, allowing them to market the property to potential buyers. If a buyer is found, the wholesaler can exercise the option and close the transaction. We’ll provide a free option contract template to facilitate this process.

Wholesaling real estate can be a lucrative venture, and understanding the different ways to structure deals is paramount for success in the industry. Armed with these smart strategies and free contract templates, you’ll be well-equipped to streamline your wholesale transactions and maximize your profits.

Method 1: Buy It & Re-Sell It (Double Closing)

Step-by-Step:

1. Get a signed Purchase & Sale Agreement from a motivated seller.

2. Use your own (or transactional) funding to buy the property.

3. Without doing any repairs, find a new cash buyer.

4. Get a new signed contract to sell the property.

5. Complete a second closing and walk away with profit.

Pros:

• Your wholesale fee stays hidden from the end buyer.

Cons:

• You’ll need your own funding for the initial purchase.

• You’ll pay double closing costs, which can eat into your profit.

Double Closing in Real Estate: The Simultaneous Buy & Sell Strategy

Double closing, also known as back-to-back closing or simultaneous closing, is a real estate investment strategy where you purchase a property and immediately resell it to another buyer—often on the same day!

This technique allows investors to profit without using their own money for the purchase, making it popular among wholesalers and creative investors.

How Double Closing Works

1. Find the Deal – You locate a motivated seller willing to sell below market value
2. Secure Buyer #1 – You get the property under contract with the seller
3. Find Buyer #2 – You find an end buyer willing to purchase at a higher price
4. Close Twice in One Day – You first buy the property, then immediately sell it

The magic happens at the closing table! You’re essentially “flipping the paper” rather than the property itself. The first transaction funds the second one, and you walk away with the profit margin.

Benefits of Double Closing

• Minimal cash required (sometimes zero!)
• No need for traditional financing approval
• Your profit is protected (end buyer doesn’t see what you paid)
• Can work with higher-priced properties than assignment deals
• Creates a clean chain of title

Risks and Considerations

• Closing costs are paid twice
• Requires coordinating two transactions perfectly
• Need a title company/attorney familiar with double closings
• Some lenders prohibit same-day closings

Is Double Closing Right for You?

If you’re looking to get started in real estate with minimal capital but want to protect your profit margins, double closing might be your ticket to investment success! Just remember to work with knowledgeable professionals who understand this strategy.

Method 2: Assignment (Single Closing)

Step-by-Step:

1. Get a signed Purchase & Sale Agreement with the seller.

2. Find a cash buyer ready to close.

3. Assign the original contract to the buyer using an Assignment Agreement.

4. Buyer steps in, closes the deal, and pays your assignment fee.

Pros:

• No funding needed

• Only one closing—so fewer fees.

Cons:

• The buyer sees exactly what your wholesale fee is.

Assignment in Real Estate: The Single Closing Strategy

Assignment, or single closing, is a popular real estate investment technique where you contract to purchase a property but then “assign” your rights in that contract to another buyer—without ever taking ownership yourself!

This method is a wholesaler’s dream, allowing you to profit from real estate deals with minimal risk and often without using any of your own capital.

How Assignment Works

1. Find the Deal – You discover a motivated seller offering a property below market value
2. Get It Under Contract – You sign a purchase agreement with the seller
3. Include Assignment Clause – Ensure your contract has language allowing assignment
4. Find an End Buyer – Market the deal to your network of investors
5. Assign Your Contract – Transfer your rights to the end buyer for a fee
6. One Closing Only – Step aside as the end buyer closes directly with the seller

The beauty is in the simplicity—only one closing takes place!

Benefits of Assignment

• Lower transaction costs (only one closing)
• Minimal paperwork compared to double closing
• No need to secure funding for the purchase
• Can exit the deal quickly
• Less coordination required between parties

Risks and Considerations

• Your assignment fee is visible to all parties
• Some sellers prohibit assignment in their contracts
• Not ideal for bank-owned properties or listed homes
• Limited control over the closing process
• Potential for deals to fall through if end buyer backs out

Is Assignment Right for You?

If you’re looking to start wholesaling with minimal complications and transparent transactions, assignment contracts offer a straightforward path to profits. They’re perfect for beginners who want to test the waters before diving deeper into real estate investing!

The key is building a solid network of investors who can close quickly when you bring them deals.

Method 3: Option Agreement

Step-by-Step:

1. Sign an Option Agreement to purchase a property.

2. Find a buyer who wants to purchase the property.

3. Assign your Option Agreement to the buyer.

4. Buyer exercises the option, closes, and pays you the fee.

Pros:

• No upfront funding needed.

• Just one closing, with fewer fees.

Cons:

• Again, the buyer sees your wholesale fee.

Option Agreements in Real Estate: The Strategic Right-to-Buy Method

An option agreement in real estate is a powerful investing strategy that gives you the exclusive right—but not the obligation—to purchase a property within a specific timeframe at a predetermined price. Think of it as “reserving” a property while you decide what to do with it!

This flexible technique bridges the gap between traditional purchases and creative investing, offering unique advantages for savvy investors.

How Option Agreements Work

1. Negotiate With the Seller – Reach an agreement on purchase price and timeframe
2. Pay Option Fee – Provide a non-refundable fee for the exclusive right to buy
3. Secure the Contract – Document terms, timeline, and conditions
4. Decide Your Exit Strategy – You can buy yourself, assign your option, or walk away
5. Exercise or Let Expire – Purchase the property or allow the option to lapse

The magic lies in controlling the property without owning it!

Benefits of Option Agreements

• Low upfront cost (just the option fee)
• Time to analyze, market, or find funding
• No ownership costs during option period (taxes, maintenance)
• Flexibility to walk away if better opportunities arise
• Potential to lock in today’s price for future purchase
• Can be combined with lease agreements (lease-option)

Risks and Considerations

• Option fee is typically non-refundable
• Seller retains ownership until purchase is complete
• Market could decline during option period
• Legal complexity requires proper documentation
• Some states have specific regulations for option contracts

Is an Option Agreement Right for You?

Option agreements shine when you spot great potential but need time—whether for due diligence, arranging financing, finding an end buyer, or waiting for market conditions to improve. They’re perfect for investors who value flexibility and want to minimize risk while maintaining control!

The key is negotiating terms that give you enough time and favorable conditions to execute your strategy successfully.

Each of these methods has a time and place. With the right approach—and the ready-made agreements inside our Wholesaler Contract Package—you can wholesale safely, legally, and profitably without the risk of ending up with a home you don’t want.