Direct Title Transfer


I met a guy at the local REIA club and told him about double closings and how they requires the full fund upfront. He said to ask the title company if they do Direct Title Transfer. From what I understand, it’s closing with the buyer first and then close with the seller. Is this even possible and if it is, is it the same process as double closing? Someone please advise.



That sounds like a simultaneous close where the buyer will fund the transaction. It’s a tad complicated for me to explain since I’ve never done one but if you search the forums for it it has been explained very well.

Double Closings – Why and How

Okay, so by now you understand what wholesaling is so why you would want to double-close. Wouldn’t you rather just get your assignment fee in whole and boogie? Not always.

Here are three reasons to use a double closing:

  1. A double closing allows you to use the buyer’s funds to close the first sale.

  2. The buyer may need to finance your assignment fee if it is outrageous, say $40,000 or something along those lines.

  3. You might not want your buyer to know how much money you are making. Any assignment over industry normal, you always want to double.

Double Closing (Wikipedia): “A double closing is the simultaneous purchase and sale of a real estate property involving three parties: the original seller, an Investor (middleman), and the final buyer.”

The underlying reasons for having a double closing vary. The most pressing and usual reason is to allow the middleman to use the purchaser’s funds to acquire the property from the original seller. Another common reason for a double closing is to conceal the identity of the purchaser or seller.

Typically, a real estate Investor first enters into a contract to purchase a property and then subsequently (before closing the purchase) enters into a contract to sell the property (hopefully for a higher price). The Investor then utilizes a double closing to close both transactions at approximately the same time.

A quick note to mention is that this is not a simultaneous closing. A simultaneous closing is a real estate seller financing technique, whereby the private mortgage note created by the seller is simultaneously sold to a note buyer on closing.

I know I mentioned this before, but it is worth mentioning again. Always take title insurance on both closings in a double closing scenario.

Hope this helps,

Matt Gerchow

Thank you both for responding. There are two reasons I discuss about double closing is because I have “read” and “heard” that banks do not allow assignments. Then, I also “heard” and “read” that banks do allow assingments. I want to get around the fact that, when dealing with REO’s, the banks will require proof of funds upfront or else they would not even look at the offer.

Another reason is most of the title companies I called said they do double closings but will require the funds upfront or else it’s illegal. I know that this topic had been discussed before where they title company doesn’t know what wholesaling/double closing really is.

So, the direct title transfer can be done if I don’t qualify for a loan or a proof of fund? Please advise.



Yia and others,

I have an REO under contract and am also interested to hear how this is handled.

From Matt’s post, he explains a double close with buyer’s funds funding the first transaction. But how does the buyer take title? Is a direct title transfer or quit claim deed used?

Here is how I understand the double close, please let me know if this is incorrect…I need to bring funds to close the first transaction which is my contract with the bank. Then the second transaction is done with the buyer’s funds to close my contract with the buyer. This is how the buyer takes title.

It seems the scenario in the first paragraph is an assignment that cannot be done with an REO. The second paragraph is a double close that can be done.

My big question: Can I use the buyer’s funds to close my REO transaction, then transfer my interest of the property to the buyer using a quit claim deed or similar?

Thanks much!