Need help with double closing. How does it work? Thanks
This has been addressed dozens of times…did you do a site search?
The “search” icon is in the top banner and has a globe and magnifying glass and syas “search”.
http://www.reiclub.com/forums/index.php?action=search
Keith
Hi Birdog516,
A double closing is going to happen with two contracts. One between you and the seller of the property and another between you and the final buyer.
The title company should be aware of the double closing and should have both contracts and information on all parties involved. A double closing requires that the same title company is handling both transactions.
The final buyer brings funds to the closing - the title company applies those funds to the original purchase, the difference being your profit.
For example, Bob is the homeowner. Sara is the wholesale investor. Jim is the final buyer.
Contract between Bob & Sara for $100,000 purchase.
Contract between Sara & Jim for $110,000 purchase.
Jim brings $110,000 to the closing. Title company applies $100,000 to initial purchase and gives those funds to Bob (or pays off his loan…or both). The difference of $10,000 is Sara’s profit in the deal.
This is a simplified version, of course. You will have closing costs, etc.
The double closing is very simple in concept. Much more adventurous in reality.
Good luck! I hope this helped.
Take care,
Stacy