Hey guys and gals,
Plan on using double closing process. I have the title company and buyers lined up. I have gotten a few calls. What my problem is when I explain double closing, they treat it like a scam and hangup? Everyone’s advice is full disclosure. I just need help on the way or the words to use when I explain double closing. Also, how do you guys and gals get around the real estate license issue when bird dogging?
Thanks
KYJJ
Are you wholesaling this property to rehabbers? Hard to believe they aren’t familiar with double closings.
In any case, it all boils down to how absolutely confident you come across when you explain it. If they have any sense whatsoever that this is something new to you, or that this is something you’re not absolutely confident about, then they can get squirrley.
On the flip side, if you come across like this is something that is absolutely normal and happens all the time all over the country every day, then it’ll “come through in your voice” and they’ll be like, “oh…ok.”
Or better yet, you don’t even have to explain the double closing at all. I don’t see a reason why. All the buyer needs to know is you have a deal for them at $X dollars. They don’t even need to know how much you’re making on the deal. Double closings are different from assignments for this very reason.
Actually the sellers don’t care for the idea even though I don’t try to haggle on the price. For instance, I emailed a lady who had a house for sale for 318,000 and appraised for 360,000 (local sales showed around 345 though). It was enough for me to make a good paycheck. After I explain double closing, she cut me off as if it was a scam. Since it is not the traditional way of selling a house, people think its a scam. I was wondering if there is a way in layman’s terms to tell people so I will be giving full disclosure.
Isn’t she out of the deal once she has sold it to you on the first closing? I don’t see why it is the sellers business that you plan to close again. An assignment is a little different because the two of them will meet and everyone will know that you are a middleman.
I assign the properties I wholesale and have a purchase agreement that says if I find the property to be unmarketable I do not have to buy it and that I can assign it if I wish. I will tell them when I buy it that if I don’t buy it I have business partners that will. Then my “partner”, the investor that I am teaming up with on the deal buys the house. The word partner makes it feel like both of you are buying it and you are not so much of a middleman. His name is on it because he is the one with the great credit.
The investor is asked to keep the communication limited. They know you have your game on and the deal will be a bust if they feel like the two of you are taking advantage of them.
Not a huge spread there so I’m assuming the house is in good condition and you’re looking for a retail buyer/owner occupant to buy it, not a rehabber. Am I correct?
If I’m correct then may I suggest you use an Option agreement, not a purchase & sale. When you find a retail buyer draw up the actual purchase contract directly between the buyer and seller. Have the seller sign a short addendum disclosing your fee and send the addendum to the closing agent. They will charge your profit on the HUD as a “consulting fee” or whatever.
This way you only have 1 set of closing costs and you still get paid.
But if you’re absolutely set on doing a double closing I would just simply tell the buyer that double closings are very common and are done every day all over the country. And it is true, they are. Tell them you are buying it from the seller and simply immediately reselling it to them and that’s how you make your profit. Or how about telling the buyers if they need further clarification on how it’s done or why you’re doing it this way call the title company?
Correct. The house is in perfect condition with no repairs needed. They are selling due to job transfer. I was thinking of using an option release contract that is taken care of in the closing. But I will look into the consulting idea as well. Has anyone used the option release idea in their closings?
Hi, I am a wholesaler as well and I would love to work with you as far as knowing what to say and how to say it. If you can, email me, and we will chat soon. I will send you an email.
Charisse
I wouldn’t tell them there would be a double-closing. You just set up for the buyer to be there first and then bring the seller in last. You may be able to find a title company to work with you if you use them for most or all of your deals. Also, If you find an investor you can have a good trusting business relationship bird dogging to them will just be as simple as telling them about the property and then they will cut you a check. We have an investor we worked a bird dog deal out with and he will just cut us a check.
Okay, here’s the deal…#1 Doing a double closing is NONE of the sellers business if you don’t want to make it be. Afterall you’re buying their home…However this is what my clients and I use if we want to tell them about it…
In reality a double closing is NOT at all different from any other closing except for the timeline…
The easiest way for them to understand is to ask them…If I bought your house today and then wanted to sell it tomorrow Would it offend you…
Their answer will 99% of the time be No it wouldn’t offend me…Then explain that the scenario is the same thing as a double closing only instead of you waiting to sell the home until tommorow, your selling it right after closing.
Hope this helps,
Eric Medemar
OK, WE HEAR YOU SAY YOU ARE NEW BUT NOT ALONE PERSIST TO YOUR FIRST DEAL, HEY SIR / MADAM WHAT AREAS ARE YOU FARMING NEED SOME HELP ON YOUR DEALS SO DO WE LETS TALK AND COACH ONE ANOTHER TO THE FINISH LINE
kyjj
I assume your finding end buyers and are trying to tie up homeowners.
Forget the explanation of the double close at this point or even assigning the contract. Just ask for a option to buy for a short time for a buck and get permission to show the property to one of your “partners”.
Write up a contract with you and the buyer and go into escrow. A separate contract will allow your buyer to buy you out in escrow. It is simple enough for a seller to understand in escrow as long as it is sold and there is no need to cover it upfront with seller and confuse them…
Why are you doing a double closing? Is it a REOs? If assigning the deal then there will be no need to explain anything. Most Double closing are done when can’t do an assignment of contract like REOs.