Double Close Bookkeeping: 2 Closings, 1 Deal

What is a double close, in bookkeeping terms?

A double close is 1 deal with 2 settlement statements. On the first you buy the property, and on the second you sell it. The books record each statement on its own, under 1 deal reference.

The property is bought and sold on the same day. It is never on the books at the end of a month, so nothing goes on the balance sheet as a property. The purchase price is a cost of the deal, and the sale price is its revenue.

Demo Wholesale LLC closed both legs of Deal 2 on Sep 16, 2026. The deal reference is "Deal 2, 455 Sample Ct", and every line below carries it.

How is it different from an assignment?

An assignment has 1 settlement statement, and the fee is a line on it. A double close has 2, and the profit is a line on neither. It is the difference between them after costs.

Deal 1 was an assignment and Deal 2 was a double close. Here they are side by side.

On an assignment you never buy the property, so there is no purchase to record. The fee is revenue, and the title charges are its costs. We set out that single entry in assignment fee bookkeeping.

What is on the first settlement statement?

The purchase: the price, your closing costs on the buy side, and how it was paid. The deposit and the transactional funding are credits. Any balance due is what you bring to closing.

The A to B statement for Deal 2, dated Sep 16, 2026. Demo Wholesale LLC is the buyer.

The closing costs on this statement come to $1,350. The funding covered the price less the deposit: $210,000 less $2,000 is $208,000.

The deposit and the funding are credits on the buyer's side, as on any purchase. We read a buyer's closing statement line by line in purchase closing statement bookkeeping.

The entry for the A to B statement, dated Sep 16, 2026.

The deposit paid on Aug 5, 2026 clears into the purchase price. It is not a new cost.

How is transactional funding recorded?

As a loan. It arrives on the first statement and is repaid on the second, the same day, so its balance returns to zero. The lender's fee is a cost on the deal, not part of the loan.

Demo Funding LLC lent $208,000 on Deal 2. Its fee was 1% of the amount funded, $2,080.

The $2,080 fee is a separate line: a cost on Deal 2, not part of the loan.

Transactional funding is a short loan on a property, like a hard money loan on a flip. The difference is timing: it is repaid on the second closing the same day, so there are no draws and no monthly interest. We record a longer loan, from points to payoff, in hard money loan bookkeeping.

What is on the second settlement statement?

The sale: the price your end buyer paid, your closing costs on the sell side, and the payoff of the transactional funding with its fee. What is left is wired to you.

The B to C statement for Deal 2, also dated Sep 16, 2026. Demo Wholesale LLC is the seller.

The closing costs on this statement come to $2,050. The payoff to the funder is $210,080.

The entry for the B to C statement, dated Sep 16, 2026.

How do the 2 statements become 1 deal result?

Add both statements up under the deal reference: the sale price, less the purchase price, less closing costs on both sides, less the funding fee. That is the deal profit before marketing.

Deal 2, both statements under 1 reference.

The cash tells the same story by a different route. The deposit left in August, and 2 wires moved on closing day.

Net cash and profit are both $16,520, before the $3,100 of cold calling that found the deal. The $19,870 wire on its own is not the profit.

1. 1Give the deal its reference before the first closing, and file both settlement statements under it.
2. 2Record the first statement on the closing date: the purchase price and buy-side costs, the deposit applied, the transactional funding received, and any balance you wired.
3. 3Record the second statement on its own: the sale price, the sell-side costs, the funding repaid with its fee, and the net proceeds wired to you.
4. 4Check that the transactional funding account is back to zero.
5. 5Check that every wire matches a line on the bank statement for the closing day.

What documents does the deal file need?

Both settlement statements, the purchase contract, the contract with your end buyer, the funding agreement and its payoff, and the bank record of every wire. Together they rebuild both entries.

• The A to B settlement statement: the purchase, the deposit applied, the funding and the balance due.
• The B to C settlement statement: the sale, the sell-side costs, the payoff and the net proceeds.
• The purchase contract with the seller, and the sale contract with your end buyer.
• The transactional funding agreement and the payoff figure from the funder.
• The bank statement lines for every wire on the closing day, and for the deposit.

How the profit on a double close is treated on a tax return is a question for your CPA. The books supply both statements and the deal result either way.

2 statements, a same-day loan and a deposit, filed under 1 reference beside every other deal that month: that is the whole record of a double close.