Hello, If I want to use double closing because im looking to deal with an REO.
Who pays the closing costs and also are there going to be 2 closing costs?
For example I have a property under contract for $100k and my end-buyer is willing to take it from me for $110k. How do you work this and who pays cc?
Thank you.
If they are paying cash there is no reason for a double close. You will have to pay 2 sets of closing cost. Sign the contract as trustee and sell the beneficial interest in the trust. That is a much cheaper way to do it.
Its all about how you negotiate the deal. It would be in your best interest to tell the seller in your offer that they have to pay the closing cost and tell the new buyer they have to pay their closing cost. If you don’t do that these cost could eat up all your wholesale profits. The bigger the wholesale profit the less of a issue it would be.