So I reached out to one of the bigger Title companys in my area and explained my exit strategies…He is the principal of the company and didn’t respond until well over a week since I emailed him.
Should I not have been as open as I was ? Ofcourse ,there will always be full disclosure for any of these deals. :eek
"… Sorry for the delay in getting back to you. I am also sorry to tell you that our parent company, First American Title, has issues with investors doing double closings and we may not be able to work with you on those matters. Specifically, our underwriters will not let us handle a double closing unless there is full, written disclosure to all parties of the details of both contracts and/or closings (including any banks or lenders that might be involved with a “short sale” or a lender giving the new buyer their loan to purchase the property). In other words, we cannot accommodate the closings unless the original owner, his lender, the new buyer and his lender are all aware of the details of both contracts, and they all acknowledge their consent to both transactions. Anything short of that has the appearance of potential fraud or misrepresentation and our underwriters will not allow us to participate as closing agents."
Maybe I’m missing some thing, but give them what they ask for, full disclosure. Possibly you could come to contract with the seller, and come to contract with you and the buyer for a higher price. Then have the title co’s attorney prepare a release of contract between you and the seller, and collect the spread at closing. In other words the spread is your charge for releasing, and not an assignment. Hey one closing. Herbster
Double closings are interesting, but very mis-understood!
Double closings are illegal by state law in over 25 of the 50 US states.
Fidelity National Title does double closings but only in states where double closings are not prohibited by law.
Good luck!
Gold River,
What is your definition of Double Close? Do you use it interchangeably with Simultaneous close?
Double Close is when you close A-B with your money and then close again B-C with the buyers money. Don’t see how that is Illegal in any way shape or form. Maybe the lender doesn’t like it and has seasoning requirements, but that’s about it.
Simultaneous Close on the other hand is an A-B-C transaction where B uses C’s money to pay A. That I always found a little fishy and could see it being illegal.
I am refering to double close with Private Money to fund A-B,then buyer closing B-C with their’s…In this case everyone is aware of what is going on…I’m learning that I am not to dump my strategy on the Title company all at once and scare them …I go ahead and try to work with them and see how it pan’s out…gotta get out there and learn .
A double closing is defined as a purchase which is paid for with your end buyers money in escrow and closed simutaniously (at the same time). A paid by C with B profiting from the deal. (A double closing must close at the same time as the money from end buyer C pays the purchase to seller A and investor B simple takes the profits of the transaction)
A simutanious closing is when you use a transitional funding company or your own money and then sell it over to your end buyer. AB - BC
(A simutanious closing is just two individual purchases and closings they could be an hour, a day or a week apart)
My mother became a Broker in 1971 and it has been defined this way since at least that time, she remembers it in her agent and broker classes.
I am sure you have them reversed.
Gold River
You and your mother have had it wrong since 1971. A double close got the name from two actual closings taking place independently, even though they occurred on the same day. A simultaneous close got the name from both closings occurring together, but one dependent on the other for both to close. Investors have been corrupting these terms the last decade especially because of the tendency to use them interchangeably.
I started investing in 1955 (actually, April, 1953 at age 11) and became a broker in 1965 and that is the way it was, and still is when used correctly. The people I deal with daily now just use the terms dry close and wet close to keep things straight when we are talking because the terms double close and simultaneous close are so commonly misused now days.
Gold River
Correction. Meant to say April 1951 at age 11. I’m not a movie star so no need to knock years off my age.