Blind HUD vs. Double Close: Which Should You Use, and When?

One of the biggest challenges of successfully wholesaling deals with bigger spreads is figuring out how to keep sellers and/or buyers from seeing your profit.

The two most common strategies for this are Blind HUDs (Keeps your assignment fee hidden by only showing a partial settlement statement.) and Double Closes (You buy the property first, then sell it separately to your end buyer on the same day, also accomplishing the goal of keeping your profit confidential.)

Both methods have pros and cons, and which one is best depends on the size of your assignment fee, local regulations, and how much transparency you think you can get away with without losing the deal.

What Is a Blind HUD (Split HUD)?

A Blind HUD (or Split HUD) is a strategy where the seller and buyer each receive separate settlement statements, meaning they only see their side of the transaction and not your wholesale(assignment) fee.

How It Works:

• You have a traditional contract for purchase and sale between you (the wholesaler) and the seller.

• You also have an Assignment of Contract agreement between you and the end buyer.

• The title company prepares separate settlement statements (HUDs) for the seller and buyer.

• The seller’s HUD shows the agreed purchase price but does NOT show your assignment fee.

• The buyer’s HUD includes the total price they’re paying—including your assignment fee.

Pros of a Blind HUD:

✅ Cheaper & Faster – Only one closing, meaning fewer fees and less paperwork.
✅ Easy to Execute – As long as your title company allows it, you don’t need outside funding.
✅ Keeps Seller Comfortable – The seller doesn’t see your assignment fee, which helps avoid uncomfortable questions and/or feelings.

Cons of a Blind HUD:

❌ Not Every Title Company Allows It – Some title companies consider it unethical and refuse to split HUDs.
❌ Potential Trust Issues – If the seller later finds out what you made, it could create tension or legal risks.
❌ Legal Limitations in Some States – Certain states require full transparency in transactions, meaning a Blind HUD isn’t always an option.

What Is a Double Close?

A Double Close means that you actually buy the property from the seller before selling it to the end buyer. It’s two separate transactions, keeping your profit completely hidden. Both transactions happen on the same day

How It Works:

• You close on the property first with the seller, using either your own cash, transactional funding, or hard money.

• Once you officially own the property, you immediately resell it to your end buyer.

• Each transaction has its own HUD statement, so the seller never sees what you sell it for.

Pros of a Double Close:

✅ 100% Privacy on Your Profit – Since the transactions are separate, neither party sees how much you made.
✅ Looks More Professional – You’re actually closing on the deal, which can improve credibility with buyers.
✅ Avoids Seller/Broker Pushback – No risk of sellers backing out when they see your fee.

Cons of a Double Close:

❌ Higher Costs – You pay two sets of closing costs, which can hurt if your profit margins aren’t big enough.
❌ May Require Outside Funding – Since you must purchase the property first, you need transactional funding, hard money, or your own cash. However, if you can find an awesome title company, they will allow you to use the funds from the second close to fund the first one.
❌ Takes More Time – Coordinating two closings means more moving parts, which can slow things down. However, in my experience, this hasn’t been an issue.

Which States Allow Blind HUDs & Double Closings?

Some states regulate or prohibit these strategies, so it’s crucial to check local laws.

🚫 States with Restrictions on Double Closings:

• Illinois – Requires full transparency on all transactions. Double closings are discouraged or heavily regulated.

• Maryland – Prohibits double closes if there’s no clear disclosure of all funds to all parties.

• Minnesota – Heavily regulated; some title companies refuse to do Double Closings due to compliance risks.

✅ States Where Double Closings Are Legal (With Conditions):

• California – Allowed, but each closing must happen separately with its own funds.

• Florida – Permitted, but some title companies won’t let you use the end buyer’s funds to fund your purchase from the seller.

• Texas – Allowed, but regulated and heavily dependent on your title company.

⚠ What About Blind HUDs?

Blind HUDs are often at the discretion of the title company. Even in states where it’s technically legal, not all title companies will allow it. Some see it as a potential ethical issue.

💡 Pro Tip: Always work with an investor-friendly title company that understands wholesaling and creative financing strategies.

Which Strategy Should You Use?

So, should you go with a Blind HUD or a Double Close? It depends on your situation!

💰 Use a Blind HUD if:

• Your assignment fee is small (under $10K–$15K).

• Your title company allows it.

• You want a faster, cheaper closing.

🏡 Use a Double Close if:

• Your assignment fee is large (over $15K).

• You want to keep your profit 100% private.

Bottom Line?

Both Blind HUDs and Double Closings are powerful tools for wholesalers—when used correctly.

⚡ Blind HUDs are faster and cheaper, but are not permitted by all title companies.

⚡ Double Closings are more private and professional but require more money and time.

The title company I work with most often doesn’t allow blind HUDS, so I usually opt for double closes. However, if the assignment fee is under $10k, I am generally ok with everyone seeing that number as they understand that investors have to make money too.

In conclusion, I’d say a double close is the most ideal option, as the pros outway the cons. The double closing costs aren’t a long term issue as the goal is to move toward only doing deals with bigger spreads anyway.

Hope this was super helpful!

Best,

Cass