You found the deal. You have the end buyer. Now you just need to close it. In the world of Florida real estate wholesaling, this is where most people get nervous. They worry about showing their profit or getting flagged for unlicensed brokerage.
Double closing is the move that separates the amateurs from the professionals. It allows you to protect your privacy and your paycheck simultaneously. But if you do it wrong, you’re not just risking a deal: you’re risking a visit from the Florida Department of Business and Professional Regulation.
As the Founder and CEO of Independence Title, I have seen every type of deal structure imaginable. My team and I focus on the high-level, complicated stuff that other title companies in Fort Lauderdale won't touch. We don't just process paperwork; we provide a concierge title experience that keeps you out of legal hot water.
The Truth About Wholesaling in Florida
The reality is that wholesaling is under a microscope. Regulators are cracking down on people who act as unlicensed brokers. If you are out there marketing properties you don't own, you are walking a thin line.
The "Truth" is simple: You cannot sell a property that you do not own or have a legal equitable interest in. Many wholesalers try to hide behind simple assignments, but assignments reveal your entire profit margin to both the seller and the buyer. This leads to "haircuts" on your fees or, worse, deals falling apart at the closing table because a seller feels cheated.
Double closing solves this by making you a true principal in the transaction. You buy it, then you sell it. You are the buyer in the first transaction and the seller in the second. This isn’t a loophole; it’s a legitimate business structure that relies on the principal-buyer exemption under Florida Statute §475.011.
The Lesson: The A-B and B-C Structure
To understand double closing, you have to understand the flow of the transaction. We call this the A-B B-C structure. "A" is the original seller. "B" is you (the wholesaler). "C" is your end buyer.
In a traditional double close, there are two separate transactions occurring back-to-back.
- A–B Transaction: You buy the property from the seller.
- B–C Transaction: You sell the property to your end buyer.
In the eyes of the law and the underwriters at Florida title insurance companies, these are two distinct legal events. This means you need two sets of closing costs, two title policies, and: most importantly: funding for the first leg.
This is where Transactional Funding enters the chat. Transactional funding is a short-term, "flash" loan used to fund the A-B side of the deal. The lender provides the funds to close your purchase from Seller A, and those funds are repaid immediately (often within minutes or hours) from the proceeds of your sale to Buyer C.
Why Transactional Funding is Non-Negotiable
Years ago, some title companies allowed "dry fundings," where the end buyer’s money (C’s money) was used to fund the wholesaler’s purchase (A–B side). Today, that is a massive red flag. Most underwriters for Florida title insurance companies prohibit this practice because it creates a chain of title liability.
Slow is smooth. Smooth is fast. Doing it the right way means bringing your own funds: or transactional funds: to the table. This ensures that the A-B transaction is fully funded and legally closed before the B-C transaction begins.
Starting in 2024, Florida introduced the Commercial Financing Disclosure Law (CFDL). This means any transactional lender providing a business-purpose loan under $500,000 must provide you with clear, written disclosures of the terms. If your lender isn't doing this, they aren't following the law. At Independence Title, we ensure every part of your closing meets current Florida regulatory standards.
The Playbook: Executing a Flawless Double Close
If you want to protect what matters most: your reputation and your profit: you need a disciplined approach. Follow this playbook to execute a legal, professional double close in Florida.
Step 1: Secure an Assignable Purchase Agreement (A–B)
Your contract with Seller A must be solid. While you aren't "assigning" the contract in a double close, you still need the right to close in an entity (like an LLC). This provides a layer of protection and allows you to meet the requirements of most transactional lenders.
Step 2: Vet Your End Buyer (B–C)
You cannot double close without a guaranteed exit. Transactional lenders will not fund your A-B side unless they see a fully executed B-C contract and proof of funds from your end buyer. Whether they are using cash or a hard money loan, that money needs to be sitting in the title company's escrow account.
Step 3: Choose an Investor-Friendly Title Company
Not every title company in Fort Lauderdale understands the nuances of double closings. You need a team that knows how to handle back-to-back settlement statements and understands underwriter disclosure requirements. We specialize in these complex deals, ensuring that Seller A and Buyer C are handled with professional care while your interest is protected.
Step 4: Verify Before Wire
The wire is never real until it is verified. This is our mantra. In a double close, there are multiple wires moving. We utilize a secure IT system to prevent title wire fraud, which is rampant in Florida. We will never send you wire instructions via email without a secondary verification process.
Step 5: Execute the A-B and B-C Closings
On closing day, the transactional lender wires the funds for the A-B purchase. We record the first deed. Immediately after, we execute the B-C closing. The end buyer's funds come in, the transactional lender is paid back their principal plus a small fee, and you walk away with the spread.
Protecting Your Deal from Common Pitfalls
Even with the best playbook, things can go sideways if you don't stay disciplined. Here are the three most common mistakes I see wholesalers make:
- Failure to Disclose to Seller A: Under certain underwriter rules, the title agent may be required to disclose to the original seller that you are reselling the property immediately. This is why having a "Concierge Title Experience" matters. We know how to handle these disclosures professionally so the deal stays on track.
- Marketing the Property, Not the Contract: Until you actually own the property, Florida law (Chapter 475) says you should only market your "equitable interest" or your "contract rights." Don't post the property on the MLS as if you are the listing agent unless you are licensed.
- Cutting Corners on Funding: Trying to use "C's money" to fund "A's purchase" is a recipe for a canceled title policy. It’s worth the 1-2% fee for transactional funding to ensure the deal is legally bulletproof.
Learn. Teach. Lead. Repeat.
At Independence Title, we believe in educating our clients. We want you to grow your real estate profile because when you win, the Florida real estate market wins. Whether you are doing your first double close or your hundredth, you need a partner who understands the stakes.
We provide more than just title insurance; we provide the financial strength and confidence needed to scale your business. From Land Trusts to Closing Cost Calculators, we give you the tools to lead in this industry.
Don't let a complicated deal scare you off. With the right structure and the right team, double closings are the most effective way to build a high-volume wholesaling business in the Sunshine State.
Protect What Matters Most
Ready to take your investing to the next level? If you have a deal that requires a double close or transactional funding, don't leave it to chance.
I’m Kevin Tacher, The Title King. My team at Independence Title is ready to guide you through the process and ensure your next closing is worry-free. We handle the heavy lifting so you can focus on finding the next deal.
Contact us today to schedule your next closing and experience a true concierge title service.
How can we help you protect your next real estate investment?
