Hi All.
Can anyone tell me how a simultaneous closing or a double closing works. Do you use a Option to Purchase or a Contract for Purchase and Sale?
Thank you for all of your help!
It’s when you close by using the end buyer to finance your transaction with the seller and his transaction with you. If the lender doesn’t agree you can have the seller deed the property to you subject to the existing financing and then close on the second deal.
On a simultaneous closing, you get a PS agreement with the seller and then find a buyer. When you find a buyer you get a second PS agreement with you as the seller and them as the buyer. You send both agreements to the title company and they do the rest. The title company will keep you updated as to when they can close and you, the seller and the buyer go to closing. The title company will make you sign both sides of the deal and will hand you a check.
Is this type of closing just for cash deals? Is it the same w/ third party financing? i.e. a mortgage company.
yes most likely this will be a cash closing …if you tried to do this with 3rd party finance such as mortgage companies if your end buyer just brought to the table the mortgage company they wanted to use most likely you will run into seasoning issues …however if you did your homework and found a mortgage company that will do the mortgage without title seasoning you maybe able to get it done…now some may have seen steve cooks article in that he will buy the property in a llc…so say its 123 main st …the llc that buys it would be 123 main st llc and then he sells the llc to the end buyer so that you dont have a new buyer and seasoning issues as they are only buying really the llc which holds the interest of the property 123 main st